systematic investing banner
DIFFERENT BY DESIGN

Systematic investing

By combining the power of big data, data science, and deep human expertise to modernize the way we invest, systematic investing is unlocking new ways to seek consistent portfolio outcomes amidst a world of unpredictability.

What Is Systematic Investing?

In today’s uncertain markets, we all need more targeted investment outcomes.

By combining the power of data-driven insights, investment science, and disciplined portfolio construction to modernize the way we invest, systematic investing is unlocking new ways to seek specific outcomes amidst a world of unpredictability.

Systematic investing begins with data-driven insights.

In the digital age, we have access to vast amounts of data, from traditional sources like company financial statements and economic reports to more complex unstructured sources like company news stories, web traffic, social media sentiment, consumer geo-location data and even satellite imagery.

By harnessing highly sophisticated analytics techniques like machine learning and artificial intelligence, we transform this sea of raw data into useful investment information—providing insights faster, at greater scale, and with more granularity than traditional methods.

Next, we deploy rigorous scientific testing to learn if these investment insights actually have the potential to help forecast future returns.

This process includes a comprehensive examination of empirical evidence by seasoned investment experts—testing different combinations of variables and comparing the results to known outcomes. This ability to validate insights means portfolio decisions are firmly evidence-based on not dependent on human conviction alone.

Finally, when an insight is shown to be valuable, we employ a disciplined portfolio construction process to implement it. Our investment experts use computers to model the many complex trade-offs involved—finding a balance between expected return, risk, correlation, and cost—to guide any allocation decisions.

At every step, the systematic process is designed to help deliver more targeted investment outcomes.

Whether it’s seeking risk-managed growth through equities… generating income and maintaining ballast with bonds… or accessing new sources of diversification and return with alternative strategies…

Systematic investing is unlocking new ways to navigate a world of uncertainty.

What is systematic investing?

Systematic investing, often called quantitative investing, is an investment approach that emphasizes data-driven insights, scientific testing of investment ideas, and advanced computer modelling techniques to construct portfolios.

Different by design

The quantitively-driven process of systematic investing expands what is possible when investing—from searching for investment insights, constructing portfolios, to ultimately delivering more targeted outcomes to investors.
human x machine
Human X Machine
Fundamentally sound investment ideas are validated by quantitative testing—amplifying human decision making but keeping behavioral bias in check.
Systematic construction
Engineered for Scale
Technology-driven process helps scale investment insights across vast sets of securities—creating highly diverse portfolios while avoiding hidden concentration risks.
Targeted outcomes
Targeted Outcomes
Tech-enabled investment experts optimize portfolios for complex risk and return trade-offs—helping to target the investment outcomes that you expect.
Quotation start

The future of investing requires modern technology and portfolio construction to deliver consistent returns at a reasonable cost.

Quotation end
Raffaele Savi Head of Systematic Investing

Explore systematic strategies

BlackRock’s systematic strategies are designed to deliver investment solutions for the whole portfolio. They are built on the underlying principle of leveraging data and technology to seek differentiated excess returns, broad diversification, and robust risk management, all at a reasonable cost to investors.

Related Materials-1,Paragraph-2
Related Materials-2,Paragraph-3
Related Materials-3,Paragraph-4
Related Materials-4,Paragraph-5

To obtain more information on the funds, including the Morningstar time period ratings and standardized average annual total returns as of the most recent calendar quarter and current month-end, please visit:

Advantage Large Cap Core Fund
Advantage Small Cap Core Fund
Advantage International Fund


The Morningstar RatingTM for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.iShares.com or www.blackrock.com.

To obtain more information on the funds, including the Morningstar time period ratings and standardized average annual total returns as of the most recent calendar quarter and current month-end, please visit:

CoreAlpha Bond Fund
iShares USD Bond Factor ETF
iShares Investment Grade Bond Factor ETF
iShares High Yield Bond Factor ETF
iShares Fallen Angels USD Bond ETF


The Morningstar RatingTM for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.iShares.com or www.blackrock.com.

Investing involves risk, including possible loss of principal. An investment’s environmental, social and governance (“ESG”) strategy limits the types and number of investment opportunities available and, as a result, may underperform other investments that do not have an ESG focus. An investment’s ESG strategy may result in investing in securities or industry sectors that underperform the market as a whole or underperform other investments screened for ESG standards.

To obtain more information on the funds, including the Morningstar time period ratings and standardized average annual total returns as of the most recent calendar quarter and current month-end, please visit:

Sustainable Advantage Large Cap Core Fund
Sustainable Advantage CoreAlpha Bond Fund


The Morningstar RatingTM for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.iShares.com or www.blackrock.com.

To obtain more information on the funds, including the Morningstar time period ratings and standardized average annual total returns as of the most recent calendar quarter and current month-end, please visit:

Systematic Multi-Strategy Fund
Global Long/Short Equity Fund


The Morningstar RatingTM for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.iShares.com or www.blackrock.com.

Read our latest insights

Our investment experts take on some of the most talked about investment themes today and decode what is happening in the markets.

BlackRock Systematic Investing

By combining cutting-edge technology, scientific research, and human insight, we are constantly innovating to help improve investment outcomes for clients.

$250
billion in assets under management across equities, fixed income, and alternatives

Out systematic investment platform delivers solutions for the whole portfolio and is backed by the global scale and technological resources of BlackRock.

Increase30
Year track record of systematic investing

As leaders in the field of systematic investing, we were one of the pioneers in quantitative investing more than three decades ago and have been devoted to innovating ever since.

Increase200
Person interdisciplinary team including portfolio managers, analysts, researchers, and technologists

Our diverse pool of talent helps us constantly evolve our thinking and deepen our understanding of the investment world.

Increase700
Alpha signals helping to drive investment insights across asset classes

Our investment experts seek to harness the superabundance of data and cutting-edge analytical techniques to find new and novel sources of differentiated alpha.

Increase18
Thousand global equity securities and bond issuers analyzed daily

Our technology-driven process analyzes 15,000+ equity securities and 3,000+ bonds issuers across 45 different countries—enabling us to have an investment view on thousands of securities every day.

Source: BlackRock. All data as of 12/31/2021.