Jay Jacobs, U.S. Head of Equity ETFs at BlackRock, recently talked about the popularity of ETFs among investors and mentioned DYNF. Here is what he said:
“If you think a few things here, first is this is a global trend. We have seen a tremendous amount of ETF flows across the iShares business globally. We had a record-breaking first half of the year, record-breaking Q3 of this year. So, this is happening globally. I think secondly, you mentioned so many of the different tickers where we’re seeing flows. There’s a tremendous amount of breadth. Well, investors are looking for a couple of things. First, they’re looking for alpha. If you’re buying an actively managed ETF, oftentimes you want to beat the benchmark. DYNF has done a tremendous job of that over the last few years. But secondly, investors are looking for tax efficiency. So one of the big advantages of an ETF, particularly versus a mutual fund, is that even in very dynamic strategies like DYNF that have a lot of turnover, it can still deliver that in a very tax-efficient way, unlikely to pay out capital gains to investors.”
