BlackRock-owned ETF provider, iShares, is set to convert its $707 million MSCI Frontier and Select EM ETF to active management, as per a regulatory filing. The fund will continue to be managed by BlackRock Fund Advisors, but it will drop its peg to the MSCI Frontier and Emerging Markets Select Index and remove “MSCI” from its name. This change will allow the fund greater flexibility and liquidity in various market conditions. Once actively managed, the ETF will be able to respond to regulatory requirements, market limitations, and repatriation restrictions and will have the freedom to vary its exposure to cash and cash equivalents. The fund has had a challenging year, down more than 19% over the past year, and has only managed a 2.2% gain over the last ten years.
ETF Newz Says:
Despite its performance, the fund has recorded $341 million in net inflows over the year ended March, according to Morningstar data.
