BlackRock’s bond chief, Rick Rieder, has expanded his presence in the ETF industry with the launch of his second fund, the BlackRock Total Return ETF (BRTR), which began trading under the ticker BRTR. The actively managed ETF is led by Rieder’s team and comes approximately seven months after the introduction of the BlackRock Flexible Income ETF (BINC). BlackRock, the world’s largest ETF issuer, has a relatively smaller footprint in actively managed ETFs, and the launch aligns with the increasing demand for such funds. The BRTR ETF charges a net expense ratio of 38 basis points and is designed to invest more than 90% of its holdings in fixed-income securities, including corporate debt, mortgage- and asset-backed securities, and convertibles. The move into actively managed ETFs reflects the industry’s shift away from being limited to index management. Currently, 36 out of more than 400 ETFs in BlackRock’s US lineup are actively managed.

Defiance, a leading ETF sponsor focused on income and thematic investing, has introduced the first Israel Bond ETF, trading under the ticker symbol “CHAI” on the New York Stock Exchange (NYSE). The Defiance Israel Bond ETF aims to provide investors with liquid access to Israel government and corporate bonds through the ETF structure, allowing daily buying and selling in brokerage accounts or with financial advisors. The CHAI ETF predominantly invests in Israel government and corporate bonds denominated in both USD and ILS, offering diversified exposure to the Israeli fixed-income market. It will track the MCM (Migdal Capital Markets) BlueStar Israel Bond Index, which monitors the performance of 35 USD and shekel-denominated bonds issued by the Israeli government or corporations. Defiance, founded in 2018, specializes in thematic and income-focused ETFs. The introduction of the Israel Bond ETF expands Defiance’s offering into the international fixed-income market, providing investors with a new avenue for exposure to Israel’s bonds.

Touchstone Investments has introduced the Touchstone Dynamic International ETF (TDI), expanding its suite of Distinctively Active® mutual funds and ETFs. The actively managed and fully transparent ETF aims to invest in equity securities of non-U.S. companies across developed and emerging markets, with a focus on capital appreciation. The investment strategy is based on the Los Angeles Capital Management’s Dynamic Alpha Stock Selection Model®, utilizing an adaptive quantitative process that considers evolving market conditions, managing investment risk, and weighing factors based on forward-looking expectations. The Touchstone Dynamic International ETF is designed to provide investors with a comprehensive framework for international exposure, offering a unique approach to building equity portfolios that adapt to dynamic market conditions. Touchstone Investments, known for its commitment to being “Distinctively Active,” employs a rigorous process for identifying and collaborating with top-tier asset managers to sub-advise its funds. The new ETF joins Touchstone’s existing lineup, aiming to provide investors with a tax-efficient, cost-competitive, and transparent means of accessing the firm’s investment strategies. Blake Moore, President and CEO of Touchstone Investments, expressed satisfaction with the launch and highlighted the significance of the new strategy in offering investors concentrated exposure in credible markets outside the U.S. The collaboration with Los Angeles Capital Management brings a unique investment process to the market, designed to navigate today’s dynamic market environment. Daniel Allen, President and CEO of Los Angeles Capital Management, emphasized the importance of bridging the gap between forward-looking fundamental equity management and backward-looking quantitative approaches. The partnership with Touchstone aims to capture investor preferences and provide opportunities for international exposure while building portfolios capable of withstanding challenging market conditions. The Touchstone Dynamic International ETF’s launch represents a successful conversion from the firm’s Dynamic Allocation Fund, initially announced in July as part of Touchstone’s strategic move to convert a global fund-of-funds into an ETF. The conversion aligns with Touchstone’s goal of offering investors innovative and dynamic investment solutions.