Index and ETF solutions​

All three are investment vehicles that can track an index, but they differ in how they are accessed, traded and priced.​

Collective Trust Funds (CTFs) are pooled investment vehicles typically available only to qualified investors, such as retirement plans. They are valued once per day and are not traded on an exchange. Because they are designed for qualified institutional investors, they can sometimes offer lower costs, but they are generally not available to individual retail investors.

Mutual Funds are available to individual investors and are bought or sold directly with the fund company. Transactions occur at the fund’s net asset value (NAV), which is calculated once at the end of each trading day. Mutual funds can be actively managed or index‑tracking and are commonly used for long‑term investing.

Exchange‑Traded Funds (ETFs) also track indexes but trade on a stock exchange throughout the day, similar to individual stocks. This allows investors to buy or sell shares at market prices during trading hours. ETFs typically offer transparency, flexibility and tax efficiency, which makes ETFs popular with both retail and institutional investors.

ETFs can be used for a variety of reasons and have evolved from niche instruments into a cornerstone of institutional portfolios, helping investors navigate complexity, improve efficiency and maintain flexibility across asset classes.​

While institutions once relied primarily on ETFs for short-term or operational needs, they are now used across the full investment lifecycle—from portfolio construction to ongoing risk management and strategic allocation.​

Visit iShares.com to learn more.​

ETFs are unique; they provide exposure to a diversified collection of securities, like a mutual fund, but trade on exchange, like a stock. This structure makes the liquidity of ETFs unique, too.​

Liquidity refers to the ease of buying or selling a security. ETFs have two layers of liquidity: primary market liquidity, which is provided by the underlying securities or instruments of the ETF, and secondary market liquidity, which is provided by the ability to trade ETFs on exchange.​

This means that ETFs are net contributors to market liquidity. At a minimum, an ETF will be as liquid as its underlying securities or instruments; however, many ETFs can provide even greater market liquidity than their underlying instruments.​

Yes. BlackRock’s direct indexing strategies are designed to replicate the performance of an index pre-tax, with the potential to outperform after-tax. Institutional clients benefit from:​

• Transition management: The ability to move positions in-kind to minimize tax impact​
• Active tax-loss harvesting: Systematic approaches to capture losses and offset gains​
• Customization at scale: Adjust exposures to meet value-based preferences, factor tilts or risk constraints​

For institutional investors, BlackRock’s custom indexing capabilities are delivered through vehicles such as separately managed accounts (SMAs) and direct indexing strategies, combining index expertise, technology, and risk management to support scalable, customized portfolio implementation.​

Index providers periodically make changes to, or rebalance, their indexes. This includes adding, deleting and making changes to the weights of securities in the indexes they manage. Because index funds seek to track the performance of an index, they also adjust their holdings when index rebalances happen.​

There are a multitude of decisions that must be made leading up to and during index rebalances. At BlackRock, professional index fund managers take a disciplined approach to managing rebalances as they seek to deliver fund performance outcomes that align with index performance.​

Model portfolios are professionally constructed investment strategies that combine multiple asset classes and vehicles—such as ETFs, mutual funds and alternatives—into a single, diversified portfolio aligned to a specific investment objective.​

Designed and managed by investment professionals, model portfolios provide a framework for asset allocation, portfolio construction and ongoing management. They can be customized to meet client-specific needs while maintaining a consistent, scalable investment approach.​

Yes. BlackRock Client Solutions Groups works closely with institutional investors and their investment teams, offering personalized, one-on-one consultations and analytics tailored to unique investment objectives. Key capabilities include:​

Bespoke analytics:​

• Strategic asset allocation and portfolio optimization analyses​
• Reallocation analysis​
• Risk management analytics and stress testing using Aladdin®​
• Forward simulations​

Capital market assumptions​

• Hurdle rate, surplus risk, and funded status projections for Defined Benefit pensions​
• Historical performance analysis​
• Private markets pacing analysis​
• Liquidity management strategies​
• After-tax considerations for taxable investors​
• Asset class deep dive analytics​

Thought leadership:​

• Peer studies offering comparative analytics and benchmarking relevant to your portfolio​
• Identification and analysis of emerging trends impacting institutional investors​
• Actionable implementation strategies and its impact on portfolios​