BlackRock Simplifies Investor Access to Liquid Alternatives with Managed Futures ETF
Leverages the expertise of BlackRock's pioneering $306 billion Systematic investment platform
Employs disciplined long /short approach to seek differentiated sources of return across market cycles
Today, BlackRock expanded its active ETF platform with the launch of the iShares Managed Futures Active ETF (CBOE: ISMF), a liquid alternative strategy designed to capture trend-following signals across asset classes and deliver differentiated sources of return. ISMF provides investors access to BlackRock's Systematic investment capabilities in the convenience and efficiency of the ETF wrapper.
"Managed Futures strategies have proven effective in delivering differentiated, counter-cyclical returns for investors over decades," said Raffaele Savi, Global Head of BlackRock Systematic. "ISMF can help more investors hedge and diversify their portfolios, regardless of market conditions."
Managed by Jeffrey Rosenberg, Richard Mathieson, and Stephanie Lee, ISMF harnesses the deep resources and capabilities of BlackRock's $306 billion Systematic investment platform.1 BlackRock Systematic combines the power of big data and advanced technologies with human expertise to deliver predictable and repeatable alpha to clients. BlackRock's Systematic team has been a pioneer in quantitative investment strategies for 40 years, including over 10 years of experience running dedicated trend strategies.
ISMF dually serves as a potential portfolio hedge against market weakness and as a diversifier by investing in non-traditional asset classes, including futures and derivatives, which have a tendency of low long-term correlation to traditional stocks and bonds across market cycles. The strategy's dynamic risk-management systems and trend-following quantitative models allow ISMF to swiftly adjust to market conditions, offering the potential for counter-cyclical upside with a consistent risk profile, especially during periods of sustained market weakness.
"Investors are increasingly turning to BlackRock in their search for innovative ETF solutions that offer diversified sources of return," said Jessica Tan, Head of Americas for Global Product Solutions at BlackRock. "ISMF exemplifies BlackRock's commitment to product innovation, combining our pioneering systematic capabilities with our proven expertise in managing ETFs."
Managed Futures is an $18 billion category within the broader liquid alternative space, with Managed Futures ETF assets specifically more than tripling to over $3.3 billion since 2021 as more investors seek uncorrelated sources of returns and the potential for upside during periods of sustained market trends.2
ISMF bolsters BlackRock's $41 billion active ETF platform with a data-driven, trend-following liquid alternative offering.3
About BlackRock
BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock
About iShares
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of over 1,500+ exchange-traded funds (ETFs) and $4.2 trillion in assets under management as of December 31, 2024, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.
Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.
The Fund is actively managed and does not seek to replicate the performance of a specified index. The Fund may have a higher portfolio turnover than funds that seek to replicate the performance of an index.
Investing in commodity-linked derivatives and commodity-related companies may increase volatility. Price movements are outside of the Fund's control and may be influenced by weather and climate conditions, livestock disease, war, terrorism, political conflicts and economic events, interest rates, currency and exchange rates, government regulation and taxation.
Commodity futures trading may be illiquid. In addition, suspensions or disruptions of market trading in the commodities markets and related futures markets may adversely affect the value of the Fund. The Fund is a commodity pool, as defined in the Commodity Exchange Act and the applicable regulations of the Commodity Futures Trading Commission, or "CFTC," and is managed by its Advisor, BlackRock Fund Advisors, a commodity pool operator registered with the CFTC.
The Fund's use of derivatives may reduce the Fund's returns and/or increase volatility and subject the Fund to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. Commodity futures trading may be illiquid. In addition, suspensions or disruptions of market trading in the commodities markets and related futures markets may adversely affect the value of the Fund. Certain derivatives may give rise to a form of leverage and may expose the Fund to greater risk and increase its costs. To the extent that the Fund invests in rolling futures contracts, it may be subject to additional risk. An increase in interest rates may cause the value of fixed-income securities held by the Fund to decline.
International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets or in concentrations of single countries.
Diversification and asset allocation may not protect against market risk or loss of principal. Alternative investments present the opportunity for significant losses and some alternative investments have experienced periods of extreme volatility. Alternative investments may be less liquid than investments in traditional securities.
Prepared by BlackRock Investments, LLC, member FINRA.
©2025 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK and iSHARES are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
__________________________________
1 BlackRock, as of 12/31/2024.
2 For category assets: Morningstar, January 31, 2025. The Morningstar Category is technically called Systematic Trend. Within the industry, "managed futures" is synonymous parlance. For managed futures ETF assets: Bloomberg, February 28, 2025.
3 BlackRock, as of 03/10/2025.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250313199505/en/
Media Contact
Joanna Yau
[email protected]
646-856-7274