BlackRock today announced the launch of the BlackRock Advantage Large Cap Income ETF (BALI ) on the Cboe Exchange. The actively managed ETF seeks consistent income with lower volatility than the broader U.S. equity market.
BALI provides income from both U.S. dividend-paying stocks and option premiums from selling call options on the S&P 500.
U.S. Head of iShares Product Rachel Aguirre said BALI “marks the latest offering in [BlackRock’s] suite of options-based ETFs.” She added: “In the face of turbulent market conditions, we continue to see more client demand for active ETF strategies.”
See more: BlackRock Lists 5 iShares TIPS ETFs
BALI combines its income strategy while deploying a flexible process in managing market exposure. It lets investors maintain upside market participation in market rallies while seeking to generate option premium income. This is designed to help investors seek high current income and potentially benefit from long-term market appreciation.
Raffaele Savi, global head of BlackRock Systematic and co-CIO and co-head of systematic active equity, leads the fund’s management team.
“BALI offers differentiated income and returns that complement traditional asset classes through a unique and disciplined investment process,” he said. Savi added that it combines “big data, data science and deep investor expertise… to deliver high current income and long-term growth opportunity.”
The ETF carries an expense ratio of 0.35%.
The listing of BALI follows BlackRock launching 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.
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