Updated: September 2, 2025
KEY TAKEAWAYS
- Investors are increasingly choosing to access actively managed strategies through ETFs due to the wrapper’s benefits, including tax efficiency and transparency.
- BlackRock projects that global active ETF assets under management will triple to $4.2 trillion by 2030, from $1.4 trillion as of June 2025.1
- Active ETFs like the iShares U.S. Equity Factor Rotation Active ETF (DYNF) are managed by BlackRock Portfolio Managers who seek superior market returns, exposure to specific sectors, or targeted outcomes.
BINC
iSHARES FLEXIBLE INCOME ACTIVE ETF
Target maximum income with an active fixed income approach.
DYNF
iSHARES U.S. EQUITY FACTOR ROTATION ACTIVE ETF
Seek growth potential through active rotation across U.S. equity factors.
THRO
iSHARES U.S. THEMATIC ROTATION ACTIVE ETF
Target dynamic exposure to evolving transformative themes.
BALI
iSHARES U.S. LARGE CAP PREMIUM INCOME ACTIVE ETF
Target monthly income from large-cap dividends and option income.
INTRODUCTION TO ACTIVE ETFs
The Exchange-Traded Fund (ETF) industry has dramatically transformed in the past 30 years, progressively growing in both assets under management and in the variety of ETFs available to investors. From just a handful of U.S.-based funds in 1993 to over 15,000 globally currently, ETFs have evolved to provide transparent access to a broad range of asset classes, sectors, and geographies.2
While ETFs primarily began as index-tracking investment vehicles, that's changing. With ETFs becoming a wrapper of choice — expanding from 15% of total fund assets in 2013 to 30% in 20253 — investors increasingly want the same low-cost, tax-efficient wrapper to pursue differentiated strategies such as alpha-seeking or to gain unique exposures. Enter active ETFs.
The active ETF universe is broad, with three distinct categories: alpha-seeking, outcomes, and exposures. While index ETFs seek to replicate the performance of an underlying index — such as the S&P 500 — active ETFs may seek to outperform a specific index or achieve a specific outcome, such as generating income.
Both active and index ETFs are professionally managed. But portfolio managers of active ETFs can incorporate proprietary research and react in real-time to evolving market conditions.
We believe the asset management industry is at an inflection point, where active ETFs are becoming an increasingly important part of investor toolkits, alongside mutual funds, closed-end funds, separately managed accounts, and index ETFs.
Consider the following:
- Active ETFs accounted for 88% of all U.S.-listed ETF launches through June 2025, and 51% of global ETF launches.4
- Active ETFs comprised 29% of global ETF net asset inflows and organic asset growth through June 2025, up from 20% the prior year.5
- BlackRock projects that global active ETF assets under management will triple to $4.2 trillion by 2030, from $1.4 trillion as of June 2025.6
We expect global active ETF assets to reach $4.2T by 2030
Actual and projected growth of active ETFs (USD billions)
Source: BlackRock, as of June 30, 2025. The 2025 number is actual through the first half of the year. Estimates are for global figures and include 2027 and 2030 scenario calculations based on proprietary research by BlackRock Global Product Solutions. Subject to change. The figures are for illustrative purposes only and there is no guarantee the projections will come to pass.
Chart description: Bar chart showing active ETF assets from 2013-the first half of 2025, with projected assets for 2027 and 2030.
BENEFITS OF ACTIVE ETFs
ETFs as a category have many benefits, including tax-efficiency, low cost, transparency and ease of trading. Incorporating active insights within the ETF wrapper unlocks additional benefits:
- Market dispersion can unlock performance: Increased market volatility and uncertainty are leading to greater dispersion, meaning a greater difference in performance across companies, sectors, geographies, and asset classes. The greater the dispersion, the greater the potential opportunity for managers to generate returns above benchmarks, or alpha.7
- Risk management: Portfolio managers of active ETFs can incorporate proprietary research and react in real-time to evolving market conditions. This gives managers freedom to respond to market developments as they seek to outperform benchmarks, target certain investment outcomes, or react to a changing market.
- Potential for fewer capital gains: Fewer active ETFs have distributed gains than active mutual funds.8 The in-kind creation-redemption process used by many ETFs may help make active ETFs more tax efficient than their active mutual fund peers. More than half of active mutual funds paid capital gains in the last five years, but only 16% of active ETFs did.9
USING ACTIVE ETFS IN TODAY’S MARKET
Here are examples of active ETFs and how they can help investors seek market returns and targeted outcomes.
Target Income: We believe the current fixed income landscape provides a generational opportunity for bond allocations. The iShares U.S. Large Cap Premium Income Active ETF (BINC) seeks to offer investors efficient access to sectors of the fixed income market that are challenging to reach, including European credit, high yield, and securitized products. The fund has the ability to invest across the extent of global fixed income opportunities. BINC is managed by an experienced team led by Rick Rieder, BlackRock’s Chief Investment Officer of Global Fixed Income and Head of the Global Allocation Investment Team.
Alternatively, income may be accessed via equity markets with the iShares U.S. Large Cap Premium Income Active ETF (BALI) invests in a basket of large-cap stocks using a proprietary dividend and derivative model which is designed to more efficiently allocate capital towards companies where more yield is available. The fund then seeks to enhance income by writing monthly call options on the S&P 500 Index. This allows investors to have upside market participation, while seeking consistent income potential from two sources of income. (Learn more about outcome ETFs like BALI.)
Navigate Volatility: With equity markets facing potentially slowing economic growth and rising policy uncertainty, we believe a dynamic approach to investing has become increasingly important. The iShares U.S. Equity Factor Rotation Active ETF (DYNF) seeks to outperform the broad U.S. market by tactically allocating to five well-known factors: value, momentum, quality, minimum volatility, and size. DYNF dynamically selects stocks based on their exposure to characteristics that the model identifies as well-positioned to outperform in the near term. Powered by a model-driven, tactical framework, DYNF adapts — positioning the fund to capture potential alpha10 as market conditions change. (Learn more about dynamic factor-based strategies.)
Invest in the future: Thematic investing aims to capture long-term structural changes like artificial intelligence (AI) and geopolitical fragmentation. Leveraging BlackRock’s proprietary systematic approach, the iShares U.S. Thematic Rotation Active ETF (THRO) seeks to identify emerging themes and the companies which could be positioned to benefit. Just as DYNF rotates among various factors, THRO seeks to dynamically rotate among U.S. market themes, potentially alleviating the need for investors to try and time which themes are coming in or out of favor. (Learn more about the most influential forces shaping global markets.)
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FEATURED FUNDS
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iShares ETFs are available to purchase through a brokerage account or with a financial advisor.
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Email your advisor 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 the iShares ETF and BlackRock Fund prospectus pages. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.
Any links to third-party websites are provided for use at your own discretion. Each third party is solely responsible for the content presented and availability of its website. BlackRock does not control, monitor or maintain third-party websites, their content or the products/services they offer. Content may change without notice. When you leave BlackRock’s website and enter a third-party website, you will be subject to that site’s terms, policies and/or notices, including those related to privacy and security, as applicable. Please review those policies and notices on the third-party website.
Before engaging Fidelity or any broker-dealer, you should evaluate the overall fees and charges of the firm as well as the services provided. Free commission offer applies to online purchases of select iShares ETFs in a Fidelity account. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain Fidelity Brokerage Services platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF’s prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRockâ€).
©2024 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
iCRMH1124U/S-3985892 -
iShares ETFs are available to purchase through a brokerage account or with a financial advisor.
Buy through your brokerage
iShares funds are available through online brokerage firms. All iShares ETFs and ETPs trade commission free online through Fidelity.
By clicking on the button below, you will leave BlackRock’s website.
Buy now on Fidelity Contact your advisor
Contact a financial professional to discuss how iShares ETFs and ETPs can fit in your investment portfolio.
Email your advisor 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 the iShares ETF and BlackRock Fund prospectus pages. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.
Any links to third-party websites are provided for use at your own discretion. Each third party is solely responsible for the content presented and availability of its website. BlackRock does not control, monitor or maintain third-party websites, their content or the products/services they offer. Content may change without notice. When you leave BlackRock’s website and enter a third-party website, you will be subject to that site’s terms, policies and/or notices, including those related to privacy and security, as applicable. Please review those policies and notices on the third-party website.
Before engaging Fidelity or any broker-dealer, you should evaluate the overall fees and charges of the firm as well as the services provided. Free commission offer applies to online purchases of select iShares ETFs in a Fidelity account. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain Fidelity Brokerage Services platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF’s prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRockâ€).
©2024 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
iCRMH1124U/S-3985892 -
iShares ETFs are available to purchase through a brokerage account or with a financial advisor.
Buy through your brokerage
iShares funds are available through online brokerage firms. All iShares ETFs and ETPs trade commission free online through Fidelity.
By clicking on the button below, you will leave BlackRock’s website.
Buy now on Fidelity Contact your advisor
Contact a financial professional to discuss how iShares ETFs and ETPs can fit in your investment portfolio.
Email your advisor 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 the iShares ETF and BlackRock Fund prospectus pages. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.
Any links to third-party websites are provided for use at your own discretion. Each third party is solely responsible for the content presented and availability of its website. BlackRock does not control, monitor or maintain third-party websites, their content or the products/services they offer. Content may change without notice. When you leave BlackRock’s website and enter a third-party website, you will be subject to that site’s terms, policies and/or notices, including those related to privacy and security, as applicable. Please review those policies and notices on the third-party website.
Before engaging Fidelity or any broker-dealer, you should evaluate the overall fees and charges of the firm as well as the services provided. Free commission offer applies to online purchases of select iShares ETFs in a Fidelity account. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain Fidelity Brokerage Services platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF’s prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRockâ€).
©2024 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
iCRMH1124U/S-3985892 -
iShares ETFs are available to purchase through a brokerage account or with a financial advisor.
Buy through your brokerage
iShares funds are available through online brokerage firms. All iShares ETFs and ETPs trade commission free online through Fidelity.
By clicking on the button below, you will leave BlackRock’s website.
Buy now on Fidelity Contact your advisor
Contact a financial professional to discuss how iShares ETFs and ETPs can fit in your investment portfolio.
Email your advisor 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 the iShares ETF and BlackRock Fund prospectus pages. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal.
Any links to third-party websites are provided for use at your own discretion. Each third party is solely responsible for the content presented and availability of its website. BlackRock does not control, monitor or maintain third-party websites, their content or the products/services they offer. Content may change without notice. When you leave BlackRock’s website and enter a third-party website, you will be subject to that site’s terms, policies and/or notices, including those related to privacy and security, as applicable. Please review those policies and notices on the third-party website.
Before engaging Fidelity or any broker-dealer, you should evaluate the overall fees and charges of the firm as well as the services provided. Free commission offer applies to online purchases of select iShares ETFs in a Fidelity account. The sale of ETFs is subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain Fidelity Brokerage Services platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF’s prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRockâ€).
©2024 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
iCRMH1124U/S-3985892
