Displaying items by tag: Blackrock

Capital Group and BlackRock both launched new active ETFs this week, reflecting how demand from advisors and asset allocators is pushing active ETF innovation into fresh territory. 

Capital Group unveiled three funds — a large-cap growth ETF, a large-cap value ETF, and a high-yield bond ETF — as it expands beyond its traditional mutual fund business and deepens ties with RIAs seeking tax-efficient, actively managed building blocks for their model portfolios. These new ETFs build on Capital Group’s push to support advisors with tools like its RIA Insider platform and its recent rollout of active ETF model portfolios. 

Meanwhile, BlackRock introduced the iShares Global Government Bond USD Hedged Active ETF, managed by its Global Tactical Asset Allocation team, to help diversify global bond exposure while protecting against currency swings. BlackRock’s new offering taps into growing advisor concerns over concentrated U.S. Treasury allocations and fits within its broader suite of institutional-grade active ETFs. 

Finsum: These launches highlight the shift in advisor priorities toward portfolio construction and model-based solutions, with active ETFs increasingly serving as the core tools for delivering customized, fee-based client strategies.

BlackRock just gave its muni bond lineup a jolt by flipping its High Yield Municipal Fund into a fresh, actively managed ETF: the iShares High Yield Muni Active ETF (HIMU), now trading on the CBOE. This fund isn’t your average sleepy muni play—HIMU is chasing juicy, tax-free income in today’s high-rate world, with a lean 0.42% net expense ratio after a fee trim. 

It's diving deep into the high-yield pool, with at least 65% of its assets in bonds rated BBB or lower—and yes, there’s room for up to 10% in distressed debt if the upside looks good. BlackRock’s betting that active management gives it the edge, letting it pounce on market moves that passive funds might miss. 

HIMU is the latest in BlackRock’s growing arsenal of bond ETFs, aiming to deliver alpha with a punch of flexibility and tax-free appeal.

Finsum: The launch comes as muni bonds are heating up again, with investors and advisors hunting for income and stability in a volatile environment.

In March, U.S. equity markets retreated sharply, driven by renewed tariff tensions and mounting economic uncertainty, marking their steepest monthly losses since 2022. International stocks, however, maintained their relative strength and continued to outperform the S&P 500 on a year-to-date basis. 

This environment reinforces the importance of active management in fixed income model portfolios, where careful duration and credit positioning can help mitigate downside risks while still capturing income opportunities. 

Dividend-focused equities stood out as a resilient segment, benefiting from their tilt toward defensive sectors amid market volatility. Fixed income returns were subdued overall, with longer-duration bonds and lower-quality credit coming under pressure from rising stagflation concerns. Income portfolios remain positioned defensively, emphasizing quality income sources across asset classes to navigate a more uncertain economic landscape.

Finsum: Investors are favoring income-generating assets with stable cash flows as risk sentiment declined.

BlackRock’s acquisition of HPS Investment Partners highlights a strategic push into private credit, a rapidly growing sector where traditional banking once reigned. Unlike BlackRock’s broad focus on public markets, HPS has excelled in targeted private lending, taking calculated risks for higher returns. 

The deal underscores BlackRock’s ambition to rival established players like Blackstone and Apollo in private markets, particularly by expanding its direct lending and junior capital businesses. HPS has historically specialized in funding private equity deals with higher-risk debt, a strategy that has delivered strong returns but also exposed it to occasional losses. 

The acquisition aligns with BlackRock’s vision to integrate public and private fixed-income offerings, particularly for institutional investors like insurers. 

With a solid track record and plans to venture further into investment-grade private credit, HPS is poised to play a pivotal role in BlackRock’s private markets expansion.

BlackRock has announced a $12 billion acquisition of HPS Investment Partners, a private credit firm led by former Goldman Sachs and JPMorgan executives. The deal highlights BlackRock’s push into private credit, a rapidly expanding $1.6 trillion market that has grown as banks retreat from leveraged lending. 

CEO Larry Fink emphasized the blending of public and private markets as a core feature of modern investing. The move aligns with BlackRock’s broader strategy to deepen its presence in alternative assets, following acquisitions of Preqin and Global Infrastructure Partners earlier this year. 

While some industry leaders, including JPMorgan’s Jamie Dimon, have raised concerns about risks in private credit, BlackRock sees significant opportunities for growth. 

Finsum: This acquisition could boost BlackRock’s effort to position itself as a leader in alternative asset management.