BlackRock Inc. has released a new exchange-traded fund (ETF) called the BlackRock Advantage Large Cap Income ETF (BALI) to compete with JPMorgan Chase & Co.’s successful active strategy. The BALI ETF charges 35 basis points and tracks dividend-paying stocks while also selling S&P 500 call options to generate additional payout streams. This move by BlackRock reflects the growing popularity of JPMorgan’s active strategy and their desire to offer a similar product to investors.
The actively managed BALI ETF aims to provide investors with both dividend income and potential capital appreciation through its combination of dividend-paying stocks and call option sales. BlackRock’s decision to launch this ETF is likely a response to the success of JPMorgan’s actively managed strategies, which have attracted significant investor interest. By offering a similar product, BlackRock hopes to capture some of this market demand and provide investors with an alternative option for generating income and potential returns.
With the introduction of the BALI ETF, BlackRock joins the competition to attract investors seeking actively managed strategies. This move highlights the diversification and innovation within the ETF industry as issuers aim to meet the evolving needs and preferences of investors. While JPMorgan has seen success in this space, BlackRock’s entry with the BALI ETF signals their commitment to remaining competitive and capturing a share of the active strategy market.