What Is the Factor Rotation Model Behind iShares U.S. Factor Rotation Active ETF (ASX:IACT)?

Sonal Goyal

28 October 2026 12:33 AM AEDT

What Is the Factor Rotation Model Behind iShares U.S. Factor Rotation Active ETF (ASX:IACT)?

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Key Highlights

iShares U.S. Factor Rotation Active ETF (ASX:IACT) seeks to outperform the large- and mid-cap US equity markets using a proprietary factor rotation model.
The fund invests through the iShares U.S. Equity Factor Rotation Active ETF (DYNF), held at 99.96% of the portfolio.
Technology is the largest sector at 41.04%, and the management fee is 0.45%.

iShares U.S. Factor Rotation Active ETF (ASX:IACT) is an actively managed exchange traded fund from BlackRock that seeks to outperform the investment results of the large- and mid-capitalisation U.S. equity markets. Benchmarked to the MSCI USA NR USD index and admitted to the ASX on 11 June 2025, the fund carries a management fee of 0.45%. This article outlines its approach, portfolio and distributions.

Exposure and Investment Approach

The fund provides diversified and tactical exposure to style factors via a factor rotation model. Under normal circumstances it invests at least 80% of its net assets, plus any borrowings for investment purposes, in U.S. listed common stock of large- and mid-capitalisation companies selected using a proprietary Factor Rotation model developed by BFA and its affiliates. In practice it holds units in the iShares U.S. Equity Factor Rotation Active ETF (ticker DYNF), which makes up 99.96% of the portfolio.

Portfolio Composition

The portfolio is held through a single investment, iShares U.S. Equity Factor Rotation Active ETF (DYNF), which represents 99.96% of the fund.

By sector, the portfolio is allocated as follows: Technology 41.04%, Financial Services 13.84%, Communication Services 9.99%, Industrials 8.88%, Healthcare 7.83%, Consumer Cyclical 6.86%, Energy 4.82%, Consumer Defensive 2.08%.

By size, 99.21% of the portfolio is in companies above $1 billion in market capitalisation. Geographic exposure is United States (99.94%).

Key Features to Understand

Because the fund is actively managed and uses a model to rotate between style factors, its sector and stock weights can differ from those of its benchmark. Geographic exposure is almost entirely the United States, at 99.94%, and 99.21% of the portfolio is in companies above $1 billion in market capitalisation.

Distribution Details

The fund's most recent recorded distribution was a interim distribution of $0.024 per unit, with an ex-date of 29 September 2026, a record date of 30 September 2026 and payment on 9 October 2026.

Fund Details at a Glance

Fund name: iShares U.S. Factor Rotation Active ETF (ASX:IACT)
Issuer: BlackRock (iShares)
Category: Equity World Other
Benchmark: MSCI USA NR USD
Admitted to the ASX: 11 June 2025
Management fee: 0.45%
ISIN: AU0000396475

Recent Announcements

Recent announcements include a final distribution announcement on 29 September 2026, distribution reinvestment plan prices, components of distributions on 1 October 2026 and monthly applications, redemptions and units on issue reporting on 7 October 2026.

Wrapping Up

iShares U.S. Factor Rotation Active ETF applies a proprietary factor rotation model to US large- and mid-cap stocks, holding its exposure through a single underlying iShares fund. Its most recent distribution was an interim distribution of $0.024 per unit, paid on 9 October 2026.

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