BlackRock Launches Active Total Return ETF BRTR

BlackRock has listed the BlackRock Total Return ETF (BRTR) on the Nasdaq. The actively managed ETF seeks alpha opportunities across the fixed income universe.

BRTR has the same investment objective, benchmark, and portfolio managers as the BlackRock Total Return Mutual Fund. It seeks to realize a total return that exceeds that of the Bloomberg U.S. Aggregate Bond Index. The diversified core bond strategy aims to deliver consistent, attractive returns across all market cycles.

BlackRock’s CIO of global fixed income Rick Rieder will manage the ETF alongside portfolio managers David Rogal and Chi Chen.

See more: “A Pending BlackRock ETF to Watch

“With over 60,000 global fixed income securities, it can be incredibly complex for the everyday investor to differentiate between the winners and losers,” Rieder said. “Through the ETF wrapper, we seek to take advantage of dispersion in markets, target durable alpha for our clients, and aim to deliver it in an efficient, transparent manner.”

Identifying Macro Trends Impacting Bond Markets

The fund’s managers aim to identify the macro trends impacting bond markets and employ a bottom-up security selection process.

Rogal said in a statement that the “strategy employs a broad multi-sector approach.” This should help “manage downside risk, while providing an income cushion and broader portfolio diversification over the long-term.”

He added that the “strategy aims to provide… a well-diversified portfolio that is built to navigate different market cycles.

BRTR is the second active ETF managed by BlackRock’s Fundamental Fixed Income team, following the launch of the BlackRock Flexible Income ETF (BINC) in May.

BlackRock also recently launched 10 iShares ETFs that invest in U.S. Treasury Inflation-protected securities (TIPS) of varying maturities. The 10 iBonds ETFs invest in U.S. TIPS with maturities ranging from 2024 to 2033.

BRTR’s net expense ratio is 0.38%.

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