Blackrock and Bitcoin logo on dark background with shiny details. 3D render. MUENSTER, GERMANY - June 17, 2023
- BlackRock has launched the iShares Managed Futures Active ETF (ISMF), a liquid alternative strategy designed to capture trend-following signals across asset classes, offering investors a hedge against market downturns and portfolio diversification.
- Managed by BlackRock’s Systematic investment team, ISMF leverages data-driven quantitative models to dynamically adjust to market conditions, providing uncorrelated returns and reinforcing BlackRock’s $41 billion active ETF platform.
BlackRock has once again expanded its portfolio of exchange-traded funds (ETFs) with the launch of the iShares Managed Futures Active ETF (ISMF). This liquid alternative strategy aims to help investors hedge against market downturns while providing diversified sources of return.
A Smarter Approach to Investing
The ISMF ETF is designed to capture trend-following signals across various asset classes. By leveraging BlackRock’s Systematic investment capabilities, this actively managed fund brings institutional-grade quantitative strategies to everyday investors. BlackRock Systematic, a pioneer in quantitative investing, has been refining these techniques for over 40 years, ensuring a predictable and repeatable approach to generating returns.
“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.”
How ISMF Stands Out
Managed by industry veterans Jeffrey Rosenberg, Richard Mathieson, and Stephanie Lee, ISMF takes advantage of futures and derivatives to offer unique portfolio protection. Unlike traditional stocks and bonds, these instruments tend to have low long-term correlations with mainstream asset classes, making them valuable tools for managing risk.
One of ISMF’s key features is its ability to dynamically adjust to market conditions using trend-following quantitative models. This means that even during periods of market uncertainty, the fund can reposition itself to capitalize on new trends while maintaining a stable risk profile.
The Growing Demand for Managed Futures
Investors are increasingly turning to alternative investment strategies to navigate volatile markets. The Managed Futures category, currently valued at $18 billion, has seen substantial growth, with ETF assets in this space more than tripling to $3.3 billion since 2021. This surge in demand highlights the growing interest in strategies that offer non-correlated returns and downside protection.
Jessica Tan, Head of Americas for Global Product Solutions at BlackRock, emphasized the company’s dedication to innovation: “ISMF exemplifies BlackRock’s commitment to product innovation, combining our pioneering systematic capabilities with our proven expertise in managing ETFs.”
A Valuable Addition to BlackRock’s Active ETF Platform
With the introduction of ISMF, BlackRock strengthens its $41 billion active ETF platform, offering investors access to a data-driven, trend-following investment solution. For those seeking a hedge against market weakness and a well-diversified portfolio, ISMF provides an attractive option.
As markets continue to evolve, BlackRock’s ISMF ETF positions itself as a powerful tool for investors looking to manage risk and capitalize on new opportunities in the ever-changing financial landscape.
