Today, BlackRock announced the successful conversion of the BlackRock International Dividend Fund into an active ETF, creating the BlackRock International Dividend ETF (NYSE:BIDD). This marks a significant milestone as the firm’s first active mutual fund to active ETF conversion, catering to the growing preference among U.S. investors for the ETF structure. It is also BlackRock’s first U.S.-listed active ETF that provides access to high-quality dividend-paying companies across international developed and emerging markets.
International equities, especially among the dividend-paying large caps, could offer investors an alternative source of alpha over the long term.2 The rise of mega caps in the U.S. market underscores the need for portfolio diversification to drive potential future returns, especially during market rotations.
Led by Olivia Treharne and Molly Greenen, the all-female portfolio management team has a proven track record of managing one of the largest high-conviction international equity strategies.3 BIDD extends iShares’ active ETF offering with the convenience, liquidity and potential tax-efficiency of the ETF wrapper.
“By investing exclusively in high-quality international businesses and concentrating on valuation, we have delivered resilient, recurring returns over time,” said Olivia Treharne, Portfolio Manager & Co-Head of BlackRock’s Global Equity Team.1 “The new active ETF helps empower a broader range of investors with easy access to pursue opportunities in the international markets.”
Fund Name | Ticker | Underlying Index | Expense Ratio |
BlackRock International Dividend ETF | NYSE:BIDD | MSCI ACWI ex US Index | 0.61% |
As BlackRock’s first mutual fund converted ETF, BIDD represents a new chapter in the firm’s commitment to product innovation and simplifying access to diverse and quality investment solutions.
“Our product development strategy begins with our clients. As fee-based advisors increasingly gravitate towards active ETFs for their tax and cost efficiency, liquidity and transparency, this conversion is a testament to the strength of our product platform to deliver access to our active investment strategies in a range of formats,” says Rachel Aguirre, Head of U.S. iShares Product at BlackRock.
BlackRock manages $33 billion in assets under management across over 40 active ETFs in the U.S.4
BlackRock International Dividend Active ETF (BIDD)
BIDD has substantially similar investment strategies, processes, and portfolio management team as the converted mutual fund. It aims to deliver strong returns by investing at least 80% of its net assets in dividend-paying international companies.
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 1,400+ exchange traded funds (ETFs) and $4.2 trillion in assets under management as of September 30, 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.
There is no guarantee that any fund will pay dividends. 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 and in concentrations of single countries. Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and the general securities market.
Actively managed funds do not seek to replicate the performance of a specified index, may have higher portfolio turnover, and may charge higher fees than index funds due to increased trading and research expenses.
Diversification and asset allocation may not protect against market risk or loss of principal. Transactions in shares of ETFs may result in brokerage commissions and may generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders.
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 Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
© 2024 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK is a trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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1 BlackRock, Morningstar as of 09/30/2024. Past performance is no guarantee of future results.
2Morningstar, 11/08/2024. The average Foreign Large Blend fund has beaten the MSCI ACWI ex USA index over the last 3/5/10Y net of fees. Alpha is the excess return of a fund relative to the return of a benchmark. Past performance is no guarantee of future results.
3 Morningstar, as of 11/12/2024. BIDD’s $895m AUM stands to be one of the largest concentrated fundamental stock picking strategies in the Morningstar Foreign Blend category.
4 BlackRock, as of 11/15/2024.
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