The Zhitong Finance App learned that BlackRock (BLK.US), the world's largest asset management agency, said on Monday that the agency has launched the first international high-dividend active exchange-traded fund (that is, active ETF) listed and traded on the US stock market — BlackRock International Dividend ETF. This ETF, which is traded only on US stocks, invests in international companies that pay high dividends, covering the global stock market. Its core holdings include top global companies such as British pharmaceutical giant AstraZeneca, European energy giant Shell, Japanese high-end industrial products giant Jiens, and Danish pharmaceutical giant Novo Nordisk.

According to information, in the process, asset management giant BlackRock International Dividend Fund (BlackRock International Dividend Fund) was transformed into an actively managed ETF, and then created and launched a new act: BlackRock International Dividend ETF (ETF code: BIDD). This marks the first time BlackRock will be activeMutual fundsSwitch to an actively managed ETF.

“By focusing on investing in high-quality international listed companies and focusing on corporate value and valuation systems, we have achieved long-term and stable recurring returns,” said Olivia Trehahn, portfolio manager and co-head of BlackRock's global equities team. “This newly launched actively managed ETF will help more investors to easily seize high-dividend investment opportunities in the international market.”

This new actively managed ETF with BIDD's fee ratio of 0.61% invests at least 80% of its net assets in high-dividend listed companies in developed and emerging markets. BIDD, an ETF that was newly listed on the US stock market on Monday, actively manages and invests in high dividend targets around the world.

The predecessor of this active ETF was a mutual fund. During the mutual fund period, its five-year average return was about 7%, which was basically consistent with the average return of mutual funds that focused on high dividends and a small proportion of fixed income type assets. For low-risk high-net-worth investors who previously invested in this mutual fund, it is a very impressive return on investment.

ETF assets are becoming more and more popular in US stocks

BlackRock converted mutual funds into publicly traded ETF assets in US stocks for the first time, joining the ranks of top asset management companies such as Dimensional Fund Advisors and Fidelity Investments (Fidelity Investments). These asset management giants have converted large areas of mutual funds into generally cheaper, more tax-efficient packaging products.

Since the first conversion in 2021, as global investors increasingly flock to the ETF market and ETF corresponding options, asset managers have converted more than 70 mutual funds into ETF, a publicly traded asset.

The US iShares product team from BlackRock said in a report that BIDD's shareholder base and shareholding are basically the same as the ETF package. It also stated that BlackRock “saw a clear shift in investor preferences. Compared with active mutual funds, the inflow of active ETFs shows this.”

According to Bloomberg Intelligence, on Friday, the overall net inflow of ETFs in the US stock market reached a new high, reaching a record high of 913 billion US dollars this year, higher than the previous record inflow of 910 billion US dollars in 2021.

Extremely suitable for low-risk investors seeking stable cash flow

The main benefit of high-dividend ETFs is that they provide investors with stable cash returns through regular dividends, while also being able to enjoy the upward price benefits brought about by rising stock prices. They are extremely attractive to value investors with low risk appetite and relatively large assets and prefer high-cash flow companies. At the same time, it is also suitable for investors who are optimistic about the potential of the international market, especially those who think that the dividend yield in the international market is relatively higher and that the stock itself is more reasonably valued.

High-dividend stocks usually come from high-cash flow companies with strong profitability and a very stable business model. Their stock price volatility is often much lower than that of high-growth high-growth stocks such as Nvidia and Atlas, and the regular dividends and low volatility attributes of high-dividend ETFs, and can also greatly cushion the negative investment effects caused by market fluctuations.

Furthermore, when the financial market as a whole is risky or faces a recession, investors tend to allocate funds to more “defensive undervalued” + “high dividend payments” double BUFF international assets.

High-dividend ETFs are relatively sensitive to interest rate levels. When the benchmark interest rate is high but the future tends to decline steadily, their return on investment is usually more attractive; compared to fixed income investment models that focus on assets such as bonds, high-dividend stocks can be described as having both potential dividend growth trends and potential opportunities for stock price appreciation.