BlackRock Launches Two Active ETFs

BlackRock launched the BlackRock Long-Term U.S. Equity ETF (Nasdaq: BELT) and the BlackRock High Yield ETF (Nasdaq: BRHY) on Tuesday, expanding its active exchange-traded funds lineup.

“Active ETFs are becoming an integral part of investor portfolios around the world, with financial advisors increasingly incorporating them into their models-based practice,” said Jessica Tan, BlackRock’s head of Americas for global product solutions.

The BELT ETF has a 0.75% expense ratio, while the BRHY ETF’s expense ratio is 0.45%.

Alister Hibbert and Michael Constantis manage the BELT fund, which uses the S&P 500 as its benchmark index, and David Delbos and Mitchell Garfin manage BRHY, which uses the Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index.

Evolving market conditions and changes in distribution dynamics have boosted growth for  active ETFs, BlackRock said.

Registered investment advisors using active ETFs in model portfolios accounted for nearly half of all active ETF assets at year-end 2023, up from 31% in 2019, the firm said, citing Broadridge Global Market Intelligence research.