iShares Launches Active Emerging Markets ETF Using AI and Quant Models

iShares has launched the iShares Enhanced Emerging Markets Active ETF (ENHE), an actively managed fund that seeks to outperform while maintaining low tracking error to the MSCI Emerging Markets Index. The ETF invests primarily in emerging-market equities and uses BlackRock’s proprietary quantitative models to identify potential stock mispricing and determine over- and underweights. Its investment process can incorporate company fundamentals, macroeconomic data, sentiment analysis, thematic signals, machine learning, artificial intelligence and large language models. ENHE will normally invest at least 80% of assets in emerging-market equities or related derivatives and may also hold securities outside the MSCI EM Index. The fund can use futures, options, swaps and currency forwards for return enhancement, hedging and portfolio management, and may trade actively as its models and investment signals change.