BlackRock has launched a new actively managed ETF in the US, designed to provide broad exposure to equity markets outside the United States while dynamically adjusting country allocations in response to perceived shifts in economic cycles.
CORO dynamically adjusts its allocation to favour international equity markets with stronger growth potential.
The iShares International Country Rotation Active ETF (CORO US) is now listed on Nasdaq with an expense ratio of 0.55%.
The fund is managed by a team of experienced portfolio managers from BlackRock’s Model Portfolio Solutions (MPS) team, including Lisa O’Connor, Michael Gates, Michele Freed, and Jonathan Adams. MPS oversees $178 billion in global assets and comprises over 20 professionals specializing in research and portfolio management for model portfolios.
CORO leverages the MPS team’s proprietary quantitative models and forward-looking asset allocation insights to identify international developed and emerging markets positioned for outperformance. This approach enables the fund to dynamically overweight specific countries relative to its benchmark, the MSCI ACWI ex-US Index.
Allocations are typically reviewed and adjusted monthly, although the fund may trade more or less frequently depending on market conditions, liquidity requirements, and portfolio manager discretion. CORO gains its exposure by investing in BlackRock’s extensive suite of iShares country ETFs, allowing for precise and timely execution of its tactical views.
By employing a combination of quantitative modeling and active management, CORO aims to capitalize on global economic trends, providing investors with a useful tool to navigate the complexities of international equity markets.
Michele Freed, Head of Research for US Model Portfolio Solutions at BlackRock, said: “International equities are a crucial diversifier for US investors. CORO’s rotation approach offers model builders a flexible tool to seek alpha by dynamically shifting towards stronger markets while maintaining balanced exposure to international markets with a single ticker.”
Rachel Aguirre, US Head of iShares Products at BlackRock, added: “We continue to see more financial advisors leveraging active ETFs as model building blocks to scale the delivery of consistent, repeatable outcomes for their clients. CORO adds another alpha-generating opportunity to our active ETF platform, helping investors benefit from active investment and risk management in the ease and efficiency of the ETF wrapper.”