Average Daily Volume
2.08M
Fund Overview
The BlackRock U.S. Equity Factor Rotation ETF (DYNF) is an actively managed exchange-traded fund that seeks to provide investors with exposure to U.S. equities while dynamically rotating among multiple investment factors such as value, quality, momentum, and low volatility. The fund aims to capitalize on changing market conditions by adjusting its factor exposures based on BlackRock's proprietary models and research. DYNF primarily invests in large- and mid-cap U.S. stocks, offering a diversified approach to factor investing without being tied to a single factor strategy. The fund's active management allows it to adapt to evolving market trends, potentially enhancing returns or reducing risk compared to static factor ETFs.
- Asset Class
-
Equity
- Industry
-
N/A
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 1.01 %
- Currency Hedged
-
No
- Portfolio Turnover
-
90 %
- Dividend Date
-
Why Invest in the DYNF ETF?
Potential Benefits
- Dynamic factor rotation may enhance returns by capitalizing on prevailing market conditions.
- Diversified exposure across multiple factors (value, quality, momentum, low volatility) reduces reliance on any single factor.
- Actively managed approach allows for tactical adjustments based on proprietary research.
- Invests in large- and mid-cap U.S. stocks, providing broad market exposure.
- Offers a potentially more flexible alternative to static single-factor ETFs.
Potential Risks
- Active management risk: Factor rotation decisions may not always be correct, potentially underperforming the market.
- Higher expense ratio compared to passive factor ETFs due to active management.
- Factor investing can experience periods of underperformance relative to the broader market.
- Concentration risk in certain sectors or stocks based on current factor exposures.
- Potential for higher turnover due to dynamic rebalancing, which may increase transaction costs.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+1.2%
|
-0.8%
|
-4.4%
|
+9.9%
|
+5.5%
|
+1.0%
|
-0.8%
|
+3.0%
|
-0.1%
|
+1.0%
|
-
|
-
|
| 2025 |
+2.5%
|
-0.7%
|
-6.1%
|
-0.4%
|
+6.9%
|
+5.2%
|
+2.8%
|
+2.3%
|
+3.6%
|
+2.8%
|
0.0%
|
+0.2%
|
| 2024 |
+2.0%
|
+6.9%
|
+2.9%
|
-4.2%
|
+5.8%
|
+4.4%
|
+0.7%
|
+3.0%
|
+1.9%
|
+0.1%
|
+6.5%
|
-2.6%
|
| 2023 |
+7.7%
|
-1.9%
|
+4.7%
|
+1.8%
|
+2.3%
|
+6.6%
|
+4.3%
|
-1.7%
|
-4.7%
|
-2.7%
|
+10.6%
|
+5.6%
|
| 2022 |
-7.2%
|
-3.2%
|
+2.9%
|
-8.5%
|
+1.0%
|
-8.2%
|
+8.2%
|
-3.9%
|
-9.1%
|
+8.1%
|
+5.5%
|
-5.6%
|
| 2021 |
0.0%
|
+3.6%
|
+4.0%
|
+4.1%
|
+1.8%
|
+1.5%
|
+1.7%
|
+2.8%
|
-4.5%
|
+7.3%
|
-1.3%
|
+2.1%
|
| 2020 |
-0.1%
|
-8.9%
|
-13.2%
|
+11.0%
|
+5.9%
|
+0.3%
|
+3.8%
|
+6.2%
|
-2.6%
|
-2.5%
|
+12.4%
|
+3.4%
|
| 2019 |
-
|
-
|
-
|
+3.1%
|
-4.5%
|
+5.3%
|
+2.2%
|
-0.9%
|
+1.4%
|
+1.4%
|
+3.0%
|
+2.7%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
MSFT
|
MICROSOFT CORP |
7.2 % |
|
AAPL
|
APPLE INC |
6.9 % |
|
NVDA
|
NVIDIA CORP |
6.3 % |
|
AMZN
|
AMAZON.COM INC |
4.6 % |
|
BAC
|
BANK OF AMERICA CORP |
3.6 % |
|
META
|
META PLATFORMS INC CLASS A |
3.5 % |
|
CSCO
|
CISCO SYSTEMS INC |
3.4 % |
|
JPM
|
JPMORGAN CHASE & CO |
3.1 % |
|
COST
|
COSTCO WHOLESALE CORP |
2.7 % |
|
GOOGL
|
ALPHABET INC CLASS A |
2.7 % |
Top 10 holdings shown, out of 109 total holdings.
Related ETFs: DYNF vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
DYNF employs an active factor rotation strategy that dynamically adjusts exposures to value, quality, momentum, and low volatility factors based on BlackRock's proprietary models. The fund does not track a specific index but instead uses quantitative signals to determine optimal factor allocations. Portfolio managers regularly assess market conditions and adjust the fund's holdings accordingly. The fund primarily invests in U.S. large- and mid-cap stocks, with the flexibility to overweight or underweight sectors and individual securities based on the current factor regime. Rebalancing occurs as needed based on model signals rather than on a fixed schedule.
Frequently Asked Questions
How often does DYNF adjust its factor exposures?
DYNF adjusts its factor exposures as market conditions warrant, based on BlackRock's proprietary models. There is no fixed schedule for factor rotation.
Does DYNF pay dividends?
Yes, DYNF pays dividends quarterly, derived from the dividends of its underlying holdings, though dividend yield may vary based on current factor exposures.
How does DYNF differ from traditional index ETFs?
Unlike traditional market-cap weighted index ETFs, DYNF actively selects and weights stocks based on factor characteristics that may outperform the broader market over time.
What is DYNF's expense ratio?
DYNF's expense ratio is 0.30%, which is higher than passive ETFs but competitive for an actively managed factor strategy.
Can DYNF be used as a core holding in a portfolio?
While DYNF provides diversified U.S. equity exposure, its dynamic factor approach may make it better suited as a strategic allocation rather than a pure core holding for some investors.
Industry Overview
The BlackRock U.S. Equity Factor Rotation ETF (DYNF) operates in the smart beta and factor investing space, which has grown significantly in recent years as investors seek alternatives to traditional market-cap weighted strategies. Factor investing aims to capture specific return drivers in the market, such as value, momentum, quality, and low volatility. DYNF's dynamic approach to factor rotation represents an evolution in this space, attempting to address one of the key challenges of factor investing - the cyclical nature of factor performance. The U.S. equity factor ETF market has become increasingly sophisticated, with products ranging from single-factor to multi-factor and now dynamic factor rotation strategies like DYNF.
Alternative Comparison
Compared to single-factor ETFs like VLUE (value) or MTUM (momentum), DYNF offers a more comprehensive approach by rotating among multiple factors. While funds like USMV (minimum volatility) or QUAL (quality) maintain static exposures, DYNF aims to adapt to changing market conditions. Among multi-factor ETFs, DYNF differs from products like LRGF (which maintains fixed factor exposures) through its dynamic rotation approach. The fund's expense ratio is competitive with other actively managed factor ETFs, though higher than passive single-factor options. Unlike some factor ETFs that use optimization techniques, DYNF's active management allows for more discretion in security selection and weighting.
Issuer Overview
BlackRock is the world's largest asset manager and a leading provider of ETFs through its iShares brand. With trillions in assets under management, BlackRock has extensive resources for research, risk management, and portfolio construction. The firm has been at the forefront of factor investing innovation, offering a wide range of smart beta and factor-based ETFs. BlackRock's investment teams combine quantitative analysis with fundamental research to develop their factor rotation models.
Conclusion
DYNF represents an innovative approach to factor investing, offering investors dynamic exposure to multiple equity factors in a single ETF. Its active rotation strategy may appeal to investors seeking to navigate changing market environments without having to manually adjust their factor exposures. While the fund carries the typical risks of active management and factor investing, its diversified, adaptive approach could provide a valuable tool for portfolio construction. As with any factor-based strategy, investors should consider their investment horizon and risk tolerance when evaluating DYNF.
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