BlackRock US Equity Factor Rotation ETF

DYNF

Market cap $26B

It's October, and ETFs are closing in on the $1 trillion mark for net inflows in 2025 (We have $997 billion as of October 9). This is a monumental achievement given this milestone was first crossed in a calendar year only last December.

The popularity of ETFs continues to surge this year. And investors definitely have a type they prefer.

Along with the increasing number of active ETF launches this year, conversions from mutual funds to ETFs have been another prevailing trend. This time, one of the biggest in the industry is converting a pair of mutual funds to ETFs — BlackRock.

As with individual stocks, exchange-traded funds (ETFs) offer a host of different metrics for investors to evaluate their appeal as investments. Besides portfolio and strategy, investors will also consider factors including expense ratio, assets under management (AUM), trading volume, net asset value (NAV), and dividend metrics, among others.

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.