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Power up your portfolios with systematic ETFs

Jun 15, 2026|iShares Fixed Income Product Strategy

In June’s Asia FIX, we unpack what goes under the hood of a systematic bond ETF, and how investors can incorporate them in their portfolios.

Systematic bond ETFs combine the transparency and liquidity of an ETF with the benefits of a systematic approach seeking to enhance portfolios with consistent, repeatable alpha. This month, we unpack what goes under the hood of a systematic bond ETF, and how investors can incorporate them in their portfolios.

Unpacking the systematic approach

Systematic strategies adopt a rules-based, quantitative approach, blending human ingenuity with the power of ‘big’ data and AI to interpret and act on real-time data, selecting bonds based on signals with the aim of outperforming their benchmarks. Targeting consistent, repeatable alpha with low tracking error, an enhanced methodology efficiently retain the value of active selection while taking a controlled approach to risk and cost.

Enhancing your core allocations

Today, systematic strategies available in the ETF wrapper offer low-cost, asset allocation building blocks in a convenient and transparent vehicle, backed by a BlackRock Systematic team with more than 20 years of experience in systematic fixed income. Systematic bond ETFs across investment grade and high yield exposures allow investors to differentiate the core of their portfolios by adding a distinctive source of alpha, or take a more diversified approach to investment styles that may prove invaluable during turbulent markets.

By re-allocating portions of an index portfolio into systematic exposures, investors can unlock relatively higher returns - without meaningfully increasing volatility or overall risk.

Participation in more market upside while mitigating downside

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Power up your portfolios with systematic ETFs

June 2026

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A durable foundation

How years of constant fixed income ETF innovation are empowering investors to navigate today’s markets and build portfolios for the new era.

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We have been a leader in the ETF marketplace for more than two decades. Our products are built by investment professionals with deep risk management expertise.

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