BlackRock Turns Popular Mutual Funds Into Global Equity ETFs

BlackRock is doubling down on the rapidly expanding active ETF universe with the launch of two mutual fund stalwarts as ETFs. The company launched the iShares Dynamic Equity Active ETF BDYN and the iShares Disciplined Volatility Equity Active ETF BDVL on Tuesday, rounding out its large iShares stable.

BDYN has a 0.42% (0.40% net) gross expense ratio and BDVL charges 0.41% (0.40% net).

BDYN is approaching key resistance levels. Check the full analysis here.

The introductions complement the company’s $50 billion Global Allocation platform and leverage the prior track records of the predecessor mutual funds, which had combined assets of $3 billion during eight years of operation.

BDYN provides global, diversified exposure by region, sector and industry, and seeks to exceed the MSCI World Index. It is a core global equity choice, with portfolio managers integrating fundamental analysis and quantitative research to select opportunities.

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BDVL, on the other hand, is defensive in orientation. Engineered to exceed the MSCI ACWI Minimum Volatility Index, it invests in companies that historically had lower volatility and aims to reduce portfolios’ exposure to dramatic fluctuations while optimizing risk-adjusted returns.

Both approaches are managed by BlackRock’s Global Allocation team, which combines fundamental research with quantitative and thematic opinions.

ETF Momentum Builds

The conversions reflect a larger trend: traditional asset managers are increasingly migrating mutual fund strategies into ETFs. Investors have preferred ETFs due to their flexibility, tax efficiency and reduced expense.

Russ Koesterich, portfolio manager in BlackRock’s Global Allocation team, said that the world of investment is rapidly shifting, and there are strong opportunities to generate alpha for investors with a globally diversified, actively managed strategy.

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