BlackRock Strengthens Active ETF Platform with Two ETFs
- BlackRock Launches New ETFs: BlackRock introduced the BlackRock Long-Term U.S. Equity ETF (BELT) and the BlackRock High Yield ETF (BRHY) managed by its strategic equity and high yield teams.
- Growth of Active ETFs: The growth of active ETFs is driven by evolving market conditions, with registered investment advisors increasingly using them in model portfolios.
- BlackRock's Alpha Performance: BlackRock has a strong track record of delivering alpha, with 93% and 79% of actively managed fixed income and equity assets outperforming benchmarks over the last five years.
- Investment Objectives: BELT seeks long-term growth through a high conviction portfolio of U.S. equities, while BRHY aims to maximize total return by investing primarily in non-investment grade bonds.
- Portfolio Managers and Expertise: The ETFs are managed by experienced portfolio managers at BlackRock, leveraging the firm's global expertise in fundamental equities and fixed income.
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Collaboration Announcement: Mastercard and PayPal have partnered to enhance consumer choice during checkout by co-developing new features using Mastercard's One Credential, which aims to help users transition from debit to structured credit options.
Global Implementation: Mastercard is rolling out One Credential as a global network capability, further solidifying its collaboration with PayPal on payment solutions, while also exploring stablecoin-based payment options through a recent partnership with MoonPay.
Partnership Expansion: Mastercard has expanded its partnership with Corpay, investing $300 million for a 3% equity stake in Corpay's cross-border business, valued at $10.7 billion. This collaboration will enhance cross-border payment solutions for Mastercard's financial clients and make Corpay the exclusive provider of large-ticket payments and currency risk management.
Launch of Mastercard Agent Pay: Mastercard introduced Mastercard Agent Pay, an innovative program utilizing agentic AI to transform commerce, in collaboration with Microsoft and other tech providers. This initiative aims to redefine commerce standards in the AI era and improve trust in agentic payments.
Stock Performance: Alphabet's shares have fallen into oversold territory with an RSI of 29.17, indicating potential undervaluation and possible buying opportunities for investors, reminiscent of a previous rebound in September 2024.
Investment Options: Investors interested in Alphabet may consider ETFs that heavily weight GOOG, as the stock is currently trading at its lowest price since December 2, raising questions about future market movements.
Mastercard's Growth Projections: Mastercard anticipates a mid-teens CAGR for EPS over the next three years, down from previous low-20s expectations, with analysts adjusting EPS estimates slightly lower due to increased investment spending.
Analyst Ratings and Market Position: Analysts from BMO Capital, Goldman Sachs, RBC Capital, and JP Morgan maintain positive ratings on Mastercard, highlighting its strong competitive advantages, growth potential in Value-Added Services, and solid long-term investment prospects despite recent stock performance fluctuations.
Mastercard's Vision for Online Shopping: Mastercard aims to transform online shopping by 2030 by eliminating physical card numbers and passwords, utilizing tokenization and biometric authentication for secure transactions. Currently, over 30% of transactions are tokenized, with some markets nearing full adoption.
Financial Projections: The company has revised its revenue growth expectations downward, projecting low-double-digit CAGR for 2025-2027 and mid-teens EPS growth over the next three years, compared to previous higher forecasts.

Investment Funds Selling Shares: Major U.S. investment funds like Fidelity and T Rowe Price are selling shares to comply with IRS regulations that require diversified portfolios, as recent gains in tech stocks have pushed their holdings above the 50% threshold.
Impact of Tech Stock Rally: The surge in tech stocks, particularly from companies like Nvidia and Tesla, has led to significant concentration in the S&P 500, raising concerns about market volatility and the challenges faced by active fund managers in outperforming indices.










