US-based asset manager BlackRock has launched European AI and factor exposure ETFs.
The iShares AI Innovation Active UCITS ETF (IART) and the iShares World Equity Factor Rotation UCITS ETF (FACT) are both active ETFs.
Jane Sloan, EMEA Head of Global Product Solutions at BlackRock said, “With the addition of these funds, BlackRock is able to offer European investors active ETFs across both systematic and fundamental investment strategies.
“The launch of an active ETF as part of our existing AI suite provides clients the choice to tailor their exposure using the wrappers that work best for them.”
The AI ETF follows the same investment strategy as the BGF AI Innovation Fund, which launched in Europe in December 2024.
It will target exposure across the entire AI value chain and is a relatively concentrated “best ideas” portfolio, consisting of 20-40 stocks. The ETF is actively managed by Tony Kim and Reid Menge who lead BlackRock’s Fundamental Equities Technology Group. The fund is listed on the LSE, Euronext and Xetra with a TER of 0.73%.
The factor rotation ETF aims to outperform the broad global equity market by tactically allocating to historically rewarded factors using proprietary insights.
“We believe offering a global and dynamic style factor strategy can deliver diversified sources of return through the economic cycle,” said Ahmed Talhaoui, Head of the Blackrock Systematic Group (BSYS) for EMEA and APAC.
“Through the combination of human insight, big data, and cutting-edge technologies, FACT will help investors access alpha opportunities by effectively allocating to those factors expected to outperform.”
