Blackrock Launches Actively Managed At1 Bond Etf

BlackRock has launched the iShares AT1 Bond Active UCITS ETF (BAT1), Europe’s first actively managed ETF focused on Additional Tier 1 (AT1) bonds. The new fund offers investors exposure to a growing $300 billion market segment of fixed-income securities issued by banks to meet regulatory capital requirements, aiming to deliver high income and portfolio diversification.

BAT1 primarily invests in AT1 bonds from investment-grade banks and leverages BlackRock’s research-driven active management and iShares' ETF infrastructure to enhance liquidity and cost efficiency. The ETF is listed on Borsa Italiana and Xetra with a total expense ratio of 0.50%.

The fund is managed by BlackRock’s EMEA Leveraged Finance team, which uses in-depth credit analysis and a bottom-up investment approach to seek alpha and mitigate risk. By combining active management with the ETF structure, BlackRock aims to make the AT1 segment more accessible to European investors seeking resilient fixed-income strategies.