BlackRock launches an active emerging debt ETF
30 APR, 2026
By Joanna Piwko from RankiaPro Europe
BlackRock has announced today the launch of the iShares $ EM Bond Active UCITS ETF (ISOV), an actively managed exchange-traded fund that allows investors to access emerging market debt denominated in US dollars. The vehicle is designed to provide consistent and sustainable results over different market cycles, combining active security selection with the daily liquidity and transparency inherent in the ETF format.
Emerging market debt represents one of the broadest and most diversified investment universes within fixed income, with an approximate size of 4 trillion dollars, covering more than 70 countries and hundreds of issuers. This segment maintains solid fundamentals, with yields at several-decade highs, interest rates in the United States near their peak and a weaker dollar that contributes to improving financing conditions for many emerging issuers. However, it is a complex and less liquid market than other developed debt segments, which reinforces the role of active management in selecting opportunities, managing risks and capturing income.
ISOV relies on BlackRock's established emerging debt platform and is designed to generate alpha in different market environments through multiple sources of return. The portfolio combines bottom-up analysis, relative positioning and macroeconomic vision, along with a solid construction framework that seeks to balance income generation with risk control.
Management Team
The fund is managed by Michel Aubenas, Ana-Sofia Monck and Kirill Veretinskii, and is backed by BlackRock's global emerging debt team, which oversees more than 44,000 million dollars in assets under management. The strategy benefits from the manager's scale, its global presence in these markets and its historical relationships with issuers.
The launch of ISOV expands the range of actively traded ETFs in Europe by iShares, which now reaches 8,600 million dollars in assets under management. The fund is listed on Euronext Amsterdam and has a TER of 0.45%.
In emerging market debt, consistency is key. Returns are at historically attractive levels, but it is unlikely that returns will come from a single theme or strategy. A disciplined and active approach is essential to navigate the complexity of this asset class and generate returns sustainably over time.
Michel Aubenas, Head of Emerging Market Debt at BlackRock
Our analysis shows that many European investors continue to underweight emerging market debt. This underweighting often responds to concerns related to complexity and volatility. ISOV now offers a simple and transparent way to access this opportunity, combining active management with the flexibility, transparency and liquidity of the ETF format.
Vasiliki Pachatouridi, Head of Fixed Income Product Strategy for iShares in EMEA
