iShares US Factor Rotation Active ETF (IACT)
https://www.blackrock.com/au/products/343627/
This product is likely to be appropriate for a consumer:
• who is seeking capital growth and/or income distribution
• using the product for a core component of their portfolio or less
• with a minimum investment timeframe of 5 years, and
• with a high to very high risk/return profile
iShares U.S. Factor Rotation Active ETF
The iShares U.S. Factor Rotation Active ETF (ASX: IACT). IACT seeks to outperform the broad U.S. equity market by tactically allocating to six economic drivers of return, or factors, based on changing market conditions.
To learn more about these factors, visit our factor investing hub.
The Australian ETF will invest in the existing US$17.4bn U.S. ETF (DYNF) which has a strong track record of delivering long-term positive returns for clients1. The investment process is based on collaborative research and aims to tactically allocate to historically successful factors using proprietary insights.
By leveraging our established ETF, we provide clients with the confidence in a live track record through different market environments and the mechanism via the U.S. ETF market where portfolio manager trading/turnover does not impact distributable capital gains for clients.
The IACT strategy benefits from two sources of return from the six factors mentioned above:
1. The long-run premiums associated with the factors.
2. Tactical returns from adjusting allocations to the factors over time.
How does factor rotation work?
IACT uses a systematic, forward-looking approach to assess six equity factors: quality, value, growth, size, minimum volatility and momentum. It considers the market environment, valuations, investor sentiment and factor-specific signals to identify which characteristics may be best positioned as conditions change.
These insights are translated into a diversified portfolio of U.S. companies, increasing exposure to more attractive factors and reducing exposure where signals are less favourable. The portfolio is regularly reassessed, allowing IACT to adapt through different market cycles.
Stock snapshot
Top three drivers of factor rotation strategy performance, Q1 2026:2
- Exxon Mobil Corp - One of the largest publicly traded oil and gas companies, with 13% expected annual earnings growth from 2026-2030.3
- Lam Research Corp - A leading global supplier of wafer fabrication equipment to the semiconductor industry, generating over US$20bn revenue in 2025.4
- Applied Materials Inc - The semiconductor materials supplier has seen its stock price rise more than 100% over the past year.5
Why invest?
Performance
In the US, iShares' U.S. Factor Rotation active strategy (DYNF) has outperformed its Morningstar category average by 6.1% annually.6
Differentiated
A unique strategy with low correlation to other active managers7 that can complement both broad market and active investments.
Invest with the best
Powered by one of the world’s largest asset manager, with over 40 years’ experience and more than US$300 billion invested across systematic strategies.8
