Actively managed ETFs in the U.S. gathered $73 billion of new money in February and, thanks to model allocation changes made by BlackRock last week, are poised for another strong month. BlackRock’s strategy of increasingly leaning into active ETFs via its model portfolios has become a powerful catalyst. The models have helped turn previously under-the-radar iShares funds billion-dollar giants just a few days. Subsequently, once more advisors became aware of them, assets further poured in.
BlackRock managed $98 billion in actively managed U.S. listed ETFs as of March 11, 2026. This is nearly triple the $37 billion they offered at the end of 2024. The iShares US Equity Factor Rotation ETF (DYNF ) and the iShares Flexible Income Active ETF (BINC ) manage $33 billion and $17 billion, respectively. The firm’s active lineup also expanded in the last two years.
Three active ETFs are currently seeing a massive surge in demand in March 2026: the iShares Large Cap Core Active ETF (BLCR ); the iShares International Country Rotation Active ETF (CORO ); and the iShares Defense Industrials Active ETF (IDEF ).
iShares Large Cap Core Active ETF (BLCR)
- The Volume Spike: On March 11, BLCR managed just $102 million. Following last week’s model rebalance, BLCR traded more than 3.5 million shares on March 12. This is a significant surge from its recent daily average of under 3,000.
- The Strategy: BLCR holds a concentrated basket of 36 stocks. With tech giants like Amazon, Microsoft and Alphabet, the active mandate allows pivots into companies like Cardinal Health, Ciena, and Howmet Aerospace.
- Performance: BLCR has established a stellar recent track record, rising 41% in the one-year period ended March 11 — outperforming the iShares Core S&P 500 ETF (IVV ) by a staggering 1,700 basis points.
iShares International Country Rotation Active ETF (CORO)
- The Volume Spike: As of mid-last week, CORO had only $17 million in assets. On Thursday, 1.7 million shares traded in CORO. This is extremely high, compared to under 3,000 on average.
- The Strategy: This ETF primarily functions as an active fund of funds, recently holding 30 positions primarily across iShares single-country ETFs (like the iShares MSCI Japan ETF (EWJ ) for Japan and the iShares MSCI Canada ETF (EWC ) for Canada), alongside select ADRs like Taiwan Semiconductor. The active approach allows for tactical overweighting of specific markets relative to a broad global ex-US benchmark.
- Performance: CORO rose 34% in the one-year period ended March 11. It outperformed the iShares MSCI ACWI ex-US ETF (ACWX ) by 400 basis points.
iShares Defense Industrials Active ETF (IDEF)
- The Volume Spike: IDEF managed $117 million on March 11, but also saw its volume climb rapidly higher last week. Volume on March 12 exceeded 4 million shares, compared to a recent average of 25,000.
- The Strategy: IDEF owns 110 positions with a global reach. With 65% U.S. companies like Lockheed Martin, Palantir, and RTX, the active ETF provides critical exposure to international defense players like Rheinmetall (Germany) and Rolls-Royce (UK).
- Performance: While it lacks a full one-year record, IDEF was up 15% year-to-date through March 11, comparing favorably to the 11% gain for the index-based iShares U.S. Aerospace & Defense ETF (ITA ).
Explanations From Exchange
Michael Gates, lead portfolio manager for BlackRock’s Target Allocation ETF model portfolio suite, shared that the team was positioning portfolios around a core theme: broadening US equity exposures while remaining risk‑on and maintaining high conviction in AI. Gates did not address specific ETFs in his published investment views.
“We remain confident in the equity outlook without requiring an aggressive factor bet, particularly in mega caps”, wrote Gates. “By rebalancing regional exposures and reducing concentration risk, the portfolio remains positioned for growth while adding exposure to a broader array of stocks with underappreciated or improving fundamentals – often supported by the deployment of AI.”
For those of you at the Exchange conference today, stay tuned. Gates’ BlackRock colleague, Tushar Yadava, will be joining the stage. In a further discussion of this topic, he will share the methodology and outlook behind the firm’s model allocation changes.
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