BlackRock, the largest issuer of exchange-traded funds (ETFs) in the world, plans to launch a new infrastructure ETF called the iShares Infrastructure Active ETF. This is happening despite recent efforts to reduce government spending.
The fund will invest in companies that work on building roads, power plants, and other infrastructure projects, as stated in an SEC filing.
Balfe Morrison will manage the new fund. He leads the infrastructure strategies in the Global Real Asset Securities Group. So far, BlackRock has not announced the ticker symbol or the launch date for this ETF.
This new fund will add to BlackRock’s current lineup of infrastructure ETFs, which includes:
- iShares Global Infrastructure ETF (IGF)
- iShares U.S. Infrastructure ETF (IFRA)
- iShares Emerging Markets Infrastructure ETF (EMIF)
BlackRock may be trying to offer more options within its model portfolios. Athanasios Psarofagis, an analyst who focuses on ETFs, noted that companies often create new products to provide variety in their internal models instead of relying on competitors.
The largest infrastructure ETF, the Global X U.S. Infrastructure Development ETF (PAVE), has dropped by 6.1% this year but has grown by 24% over the past five years, despite facing $622 million in outflows. BlackRock did not comment on this through a spokesperson.