BlackRock has expanded its range of active equity ETFs with a fundamental artificial intelligence (AI) strategy and a systematic factor rotation fund.

The iShares AI Innovation Active UCITS ETF (IART) debuts with a total expense ratio (TER) of 0.73% while the iShares World Equity Factor Rotation UCITS ETF (FACT) is priced at 0.30%.

Both are listed on the London Stock Exchange (LSE), Deutsche Boerse and Euronext.

IART, managed by Tony Kim and Reid Menge of BlackRock's fundamental equities technology group, is a concentrated ‘best ideas’ portfolio of 20-40 stocks.

The world’s largest asset manager has leaned in to the AI theme in recent months – it launched a pair of thematic ETFs in December – and declared in its 2025 outlook that transformational “mega forces” like AI are permanently breaking traditional business cycles.

Jane Sloan (pictured), EMEA head of global product solutions at BlackRock, said: “The launch of an active ETF as part of our existing AI suite provides clients the choice to tailor their exposure using the wrappers that work best for them.”

FACT, meanwhile, managed by BlackRock’s systematic active equity team, looks to outperform its MSCI World benchmark by targeting long-term style factor premiums while using tactical factor tilts to exploit short-term cyclicality.

The ETF is expected to hold 150-250 names with an annual turnover exceeding 100%.

Ahmed Talhaoui, head of the systematic group (BSYS) for EMEA and APAC at BlackRock, commented: “We believe offering a global and dynamic style factor strategy can deliver diversified sources of return through the economic cycle.

“Through the combination of human insight, big data, and cutting-edge technologies, FACT will help investors access alpha opportunities by effectively allocating to those factors expected to outperform.”