BlackRock has launched two European-listed active ETFs – iShares World Equity High Income UCITS ETF (WINC) iShares U.S. Equity High Income UCITS ETF (INCU).
The funds are a part of the iShares ETF offering range that seeks to generate high income through actively managing a diversified basket of primarily dividend-paying stocks and by selling index call options.
According to the firm, both funds offer a strategy for income and capital growth with reduced volatility compared to benchmarks. They combine BlackRock’s dividend rotation strategy with proprietary investment insights, utilizing human judgment, big data, and machine learning to forecast market outperformance or underperformance.
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These actively managed portfolios control for style and sector biases, added the firm. The funds are managed by the BlackRock Systematic team in combination with the iShares ETF platform teams.
Raffaele Savi, senior managing director, Robert Fisher, CFA, managing director and Anna Hawley, managing director, are the portfolio managers of the World Equity High Income Fund. Savi, Fisher and Travis Cooke, CFA, managing director are the named portfolio managers for the US Equity High Income Fund.
Active ETF growth outpaces passive counterparts
“Our clients’ business models in Europe are rapidly changing – a shift to centralised investment propositions, a focus on whole portfolio outcomes, a rise in digital wealth platforms, a new market regime – all mean our clients require a broader set of investment strategies across index and active, including the wrappers they’re delivered in,” said Jane Sloan, Emea head of global product solutions at BlackRock.
Both funds are listed on Euronext Amsterdam and Xetra and come with a total expense ratio for each fund is 0.35%.
