BlackRock US Equity Factor Rotation ETF

DYNF

Market cap $22.4B

DYNF offers a low-cost, active factor rotation strategy targeting value, momentum, and quality, aiming to outperform large- and mid-cap US equities. The ETF is currently overweight mega-cap tech stocks, benefiting from the ongoing AI investment cycle and strong performance of cloud service providers. DYNF has consistently outperformed the S&P 500, but investors should be mindful of concentration risk due to heavy exposure to top holdings.

More investors are looking to venture outside the home bias by adding more exposure globally. So it's an opportune time for BlackRock to announce the launch of the iShares International Equity Factor Rotation Active ETF (IDYN).

VOO, VXUS, GLD, SPY and DYNF led ETF inflows last week as the S&P 500 hit five straight record closes.

Jay Jacobs, BlackRock U.S. Head of Equity ETFs, and Roger Hallam, Vanguard global head of rates, share their outlooks for the rest of year, key trends to watch in the ETF space and the strategy behind their firms' latest funds with CNBC's Dominic Chu.

Active ETFs are grabbing investor attention, with 39% of 2025 ETF flows and 94% of 2025 fund launches now tied to active strategies.

iShares U.S. Equity Factor Rotation Active ETF has a portfolio of 108 stocks based on a model rotating between different investing styles. These factors include momentum, quality, value, size and volatility. DYNF is currently focused on mega-cap companies and information technology. DYNF has marginally outperformed the S&P 500 since inception, but has lagged growth and momentum ETFs.

Actively managed ETFs pulled in approximately 40% of the industry flows through the first four months of 2025. These ETFs tap into professional expertise, which has been helpful in the volatile market environment.

The market is recovering. It may be the right time to invest. The proposed portfolio aims for 6% income, market-matching returns, capital protection, and low maintenance, making it ideal for conservative income investors. Despite being diversified and conservative, the portfolio carries market, geopolitical, and economic risks, but aims for lower volatility and drawdowns.

Despite the ETF industry's passive roots, active has stolen the show. Active ETF assets just topped the $1 trillion threshold, making up nearly 10% of the total ETF pie.

The BlackRock Target Allocation team further embraced active ETFs at the end of February. The team runs model portfolios for advisors worth we believe approximately $150 billion.