Income ETF Portfolio Strategies

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Rodney Hunter
6 years ago
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1 Income ETF Portfolio Strategies

2 Draw on the strategic insights and tactical expertise of BlackRock through the Income ETF Portfolio Strategies. These managed account solutions may be the income investment option you re looking for.* * See Important Notes on the back of this brochure for clarification regarding BlackRock s role in providing Managed Portfolio Strategies.

3 It s time to rethink your income strategy Getting the income you need while carefully balancing the trade-offs between yield and risk can be a difficult task. You must do more to meet your goals, especially amidst low yields and unpredictable market events. The opportunity for yield is shrinking Finding income in today s market can be challenging few bonds are yielding over 4% Only 17% of Bonds yield over 4% % of High Risk Bond Yields > 4% 1 % of Moderate Risk Bond Yields > 4% 2 % of Low Risk Bond Yields > 4% 3 Sources: BlackRock Investment Institute, Barclays and Thomson Reuters. Based on 20 fixed income indices that represent the bond markets. As of December Past performance is no guarantee of future results. 1 High Risk Bonds include: Global High Yield; Emerging Markets. 2 Moderate Risk Bonds include: U.S. CMBS; Global Credit; U.S. MBS; Euro Periphery. 3 Low Risk Bonds include: U.S. Municipal; U.S. Agencies; Euro Core; U.S. Treasury. A simpler way to build your diversified portfolio BlackRock Income ETF Portfolio Strategies are designed to be your all-in-one income solution. Access these cost-effective portfolio strategies in separate accounts managed by your advisor s firm All-in-one, income portfolios Skillfully crafted costeffective ETF allocations Strategically balanced results and risk MANAGED PORTFOLIO STRATEGIES 3

4 1 All-in-one, income portfolios Generating the income you need, at a level of risk that makes you comfortable, is crucial to your financial wellness. The BlackRock Income ETF Portfolio Strategies use a mix of fixed income and equity securities to help address real life investment challenges meeting longterm income needs and preparing income portfolios for specific market risks. Target Income ETF Portfolio Strategies Fixed income portfolios designed to align with specific income goals. Core Moderate High Aggressive Seeks similar yield with less risk than bonds* Seeks more yield with more risk than bonds* Focused Income ETF Portfolio Strategies Multi-asset portfolios designed to help minimize the impact of specific market risks. Inflation Volatility Rising rates Long-Horizon Income ETF Portfolio Strategy A multi-asset portfolio designed for the long-term investor. Income 4 INCOME ETF PORTFOLIO STRATEGIES * Bonds is represented by the Barclay s U.S. Aggregate Bond Index.

5 2 Skillfully crafted costeffective ETF allocations Our portfolio management team seeks to identify the best investment opportunities, choosing from a wide universe of cost-effective ETFs and tailoring each portfolio strategy to a specific risk exposure. Using ETFs to help build a better portfolio Our innovative approach to portfolio construction allows our team to construct investment solutions focused on reducing the risk needed to help you achieve short or long-term personal goals. What are Exchange Traded Funds (ETFs)? Diversified funds that trade like stocks. $ $ $ Low cost ETFs are generally a cost-effective investment option Tax efficient ETFs can provide a tax-efficient solution for some investors impacted by rising taxes Competitive performance ETFs seek consistent index-like performance About The BlackRock Model Portfolio Solutions Team Michael Gates, CFA, is the Head of U.S. Model Portfolio Solutions. With 19 years of experience, this global team establishes market views, selects investments and continually monitors and rebalances each strategy. MANAGED PORTFOLIO STRATEGIES 5

6 3 Strategically balanced results and risk Income ETF Portfolio Strategies seek to generate the most reward for a given level of risk. To evaluate each portfolio strategy we ve harnessed the collective intelligence of Aladdin BlackRock s proprietary risk management engine relied on to analyze over 9,300 Mutual Funds and ETFs, and every dollar BlackRock manages. 1 It allows us to see what is contributing to risk in each strategy, helping us really know what we own. Putting Managed Portfolio Strategies to the test % Interest rate hike We measure various types of portfolio risk and see how a portfolio reacts in different market conditions Market crash $ Credit crisis 1 Source: BlackRock data as of 6/30/17. 6 INCOME ETF PORTFOLIO STRATEGIES

7 Want to know more? blackrock.com

8 Why BlackRock BlackRock helps people around the world, as well as the world s largest institutions and governments, pursue their investing goals. We offer: A comprehensive set of innovative solutions, including mutual funds, separately managed accounts, alternatives and ishares ETFs Global market and investment insights Sophisticated risk and portfolio analytics We work only for our clients, who have entrusted us with managing $5.68 trillion*, earning BlackRock the distinction of being trusted to manage more money than any other investment firm in the world. * AUM as of 6/30/17. Investing involves risk, including possible loss of principal. Asset allocation and diversification may not protect against market risk, loss of principal or volatility of returns. Actual investment outcomes may vary. The model portfolios should not be construed as investment advice. There is no guarantee that these investment strategies will work under all market conditions or are suitable for all investors and each investor should evaluate their ability to invest long-term, especially during periods of downturn in the market. No representation is being made that any account, product, or strategy will or is likely to achieve profits. The above are representations of various model portfolios and no guarantee is being made that the structure of other similar portfolios will remain the same or that similar results will be achieved. Important Notes: In the event that BlackRock provides you or your firm (collectively, the Advisor ) with BlackRock Managed Portfolio Strategies for compensation, BlackRock s role is limited to providing the Advisor with non-discretionary investment recommendations in the form of model portfolios in connection with its management of its clients accounts. The implementation of, or reliance on, a Managed Portfolio Strategy is left to the discretion of the Advisor. BlackRock is not responsible for determining the securities to be purchased, held and sold for a client s accounts, nor is BlackRock responsible for determining the suitability or appropriateness of a Managed Portfolio Strategy or any securities included therein for any of the Advisor s clients. BlackRock does not place trade orders for any of the Advisor s clients account. Information and other marketing materials provided to you by BlackRock concerning a Managed Portfolio Strategy including holdings, performance and other characteristics may not be indicative of a client s actual experience from an account managed in accordance with the strategy BlackRock, Inc. All Rights Reserved. BLACKROCK, ishares and ALADDIN are registered trademarks of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners. Lit. No. IPS-MPS

Target Allocation ETF Portfolio Strategies

Target Allocation ETF Portfolio Strategies Draw on the strategic insights and tactical expertise of BlackRock through the Target Allocation ETF Portfolio Strategies. These managed account solutions may