BlackRock Simplifies Investor Access to Liquid Alternatives with Managed Futures ETF

BlackRock on March 13, 2025 launched the iShares Managed Futures Active ETF (CBOE: ISMF), a liquid alternative strategy designed to capture trend-following signals across asset classes, according to a company press release distributed by Business Wire. The fund gives investors access to BlackRock's Systematic investment capabilities in an ETF wrapper. Raffaele Savi, Global Head of BlackRock Systematic, said managed futures strategies have proven effective in delivering differentiated, counter-cyclical returns over decades and that ISMF can help investors hedge and diversify portfolios regardless of market conditions.

ISMF is managed by Jeffrey Rosenberg, Richard Mathieson, and Stephanie Lee and draws on the resources of BlackRock's $306 billion Systematic investment platform, a figure BlackRock cites as of December 31, 2024. The firm states its Systematic team has been a pioneer in quantitative investment strategies for 40 years, including more than 10 years running dedicated trend strategies. The strategy uses a long/short approach, investing in futures and derivatives, and relies on dynamic risk-management systems and trend-following quantitative models to adjust to changing market conditions.

BlackRock positions ISMF as a potential portfolio hedge against market weakness and a diversifier, noting that these non-traditional asset classes have tended toward low long-term correlation with traditional stocks and bonds across market cycles. Jessica Tan, Head of Americas for Global Product Solutions at BlackRock, said the launch reflects demand for diversified sources of return and the firm's commitment to product innovation.

Citing Morningstar data as of January 31, 2025, BlackRock says managed futures is an $18 billion category within the broader liquid alternative space. Managed Futures ETF assets have more than tripled to over $3.3 billion since 2021, according to Bloomberg data as of February 28, 2025. The firm notes the Morningstar category is technically called Systematic Trend, with managed futures used as industry shorthand.

ISMF adds to BlackRock's $41 billion active ETF platform, per the firm's data as of March 10, 2025. The fund is actively managed and does not seek to replicate an index. The release includes risk disclosures noting that commodity futures trading may be illiquid, that the fund is a commodity pool regulated under the Commodity Exchange Act, that derivatives may increase volatility and counterparty risk, and that alternative investments may be less liquid and carry the potential for significant losses.