BIRAX
BlackRock Sustain Advntg LgCp Core-InvA
Introduction to BlackRock Sustain Advntg LgCp Core-InvA
The BlackRock Sustain Advntg LgCp Core-InvA (BIRAX) is a mutual fund designed to provide total return by investing in a portfolio of equity securities. This fund is particularly focused on companies that demonstrate positive societal impact outcomes, as assessed by BlackRock. It employs systematic, quantitative security selection models to align with its growth and income objectives. As a large-cap fund, BIRAX primarily targets well-established companies, offering investors a blend of stability and growth potential. The fund’s alignment with the Russell 3000 Index ensures a broad market exposure, while its emphasis on societal impact makes it an attractive option for ESG-conscious investors.
At A Glance
Executive Summary
BIRAX offers a unique blend of growth and societal impact with a competitive 0.73% expense ratio and strong 1-year return of 37.91%.
Focus on societal impact and ESG criteria Strong 1-year performance of 37.91% Managed by BlackRock, a trusted name in asset management
Higher expense ratio compared to some peers Limited bond exposure, high equity concentration Potential volatility due to large cap focus
Performance Highlights: A Year of Exceptional Returns
BIRAX has demonstrated impressive performance, particularly over the past year, with a return of 37.91%. This outpaces its benchmark, the S&P 500 Total Return Index, which posted a 1-year return of 37.62%. The fund’s strong performance can be attributed to its strategic allocation in high-performing sectors and companies, such as technology giants like Apple and Microsoft. The fund’s ability to outperform its benchmark highlights its effective management and strategic asset allocation, making it a compelling choice for investors seeking robust returns in the large-cap space.
Portfolio Composition: A Focus on Technology and Large Caps
The portfolio of BIRAX is heavily weighted towards technology, which constitutes 32% of its holdings. This sector allocation reflects the fund’s strategy to capitalize on the growth potential of tech companies, which have been significant drivers of market performance. The fund’s top holdings include major players like Apple, Microsoft, and NVIDIA, which together form a substantial portion of the portfolio. Additionally, the fund’s market cap allocation is skewed towards extra-large and large-cap companies, accounting for over 76% of its investments. This focus on large-cap stocks provides a balance of growth and stability, aligning with the fund’s growth and income objectives.
Risk Metrics: Understanding Volatility and Stability
BIRAX exhibits a beta of 1.03, indicating a slightly higher volatility compared to the market. However, its high correlation with the benchmark (99.75%) and a low standard deviation of 3.68% suggest a stable performance relative to market movements. The fund’s alpha of 0.25% reflects its ability to generate returns above the expected market performance, while the Sharpe ratio of 0.02 indicates modest risk-adjusted returns. Despite a maximum drawdown of -9.3%, the fund’s quick recovery within a month demonstrates resilience, making it a viable option for investors comfortable with moderate risk levels.
Comparative Analysis: How BIRAX Stands Against Peers
When compared to similar funds, BIRAX holds its ground with a competitive 1-year return of 37.91%. While its expense ratio of 0.73% is higher than some peers like State Street Equity 500 IxFd-A (SSSVX) with an expense ratio of 0.0047%, BIRAX offers a unique value proposition through its focus on societal impact. Other similar funds, such as Fidelity SAI Sustainable Future Fund (FIDHX), offer comparable returns but may not align as closely with ESG criteria. This makes BIRAX a distinctive choice for investors prioritizing both financial performance and positive societal outcomes.
Sector Allocation: Diversification Across Key Industries
BIRAX’s sector allocation is diversified across several key industries, with a significant emphasis on technology (32%), healthcare (12.47%), and financials (12.23%). This diversification strategy helps mitigate sector-specific risks while capitalizing on growth opportunities across different market segments. The fund’s exposure to cyclical sectors (11.31%) and industrials (9.87%) further enhances its potential for capital appreciation. By maintaining a balanced sector allocation, BIRAX aims to provide investors with a stable yet growth-oriented investment vehicle, suitable for those seeking to benefit from various economic cycles.
Societal Impact: Aligning Investments with ESG Goals
A defining feature of BIRAX is its commitment to investing in companies with positive societal impact outcomes. This focus aligns with the growing trend of ESG (Environmental, Social, and Governance) investing, appealing to investors who prioritize ethical considerations alongside financial returns. BlackRock’s rigorous assessment process ensures that the fund’s holdings contribute positively to societal goals, making BIRAX an attractive option for socially responsible investors. This approach not only differentiates the fund from traditional large-cap funds but also positions it as a leader in sustainable investing.
Conclusion: Is BIRAX the Right Choice for You?
BIRAX stands out as a compelling option for investors seeking a blend of growth, income, and societal impact. Its strong performance, particularly over the past year, combined with a strategic focus on technology and large-cap stocks, makes it an attractive choice for those looking to capitalize on market opportunities. However, potential investors should consider the fund’s higher expense ratio and its focus on equity, which may lead to increased volatility. Overall, BIRAX is well-suited for ESG-conscious investors who are comfortable with moderate risk and are looking for a fund that aligns with their ethical and financial goals.
Similar Securities
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MALVX offers growth with a 0.54% expense ratio, focusing on large-cap value stocks, ideal for growth investors.
LMVTX: ClearBridge Value-C | Value-Focused Growth Fund
LMVTX offers value-focused equity investments with a 1-year return of 33.24%, outperforming peers with a disciplined value strategy.
PREFX: TRPrice Tax-Efficient Equity-Inv | Tax-Efficient Growth Fund
PREFX offers tax-efficient growth with a focus on mid-size stocks, boasting a 43.55% 1-year return and a 0.83% expense ratio.
PRDGX: TRPrice Dividend Growth-Inv | Dividend-Paying Large Cap Equity Fund
PRDGX offers a blend of growth and income with a focus on dividend-paying large-cap stocks, featuring a competitive expense ratio of 0.64%.
JARTX: Janus Henderson Forty-S | High Growth Potential in Large-Cap Stocks
JARTX excels with a 42.68% 1-year return, focusing on large-cap growth stocks with a 0.98% expense ratio, outperforming its benchmark.
Futher Reading
https://www.morningstar.com/funds/xnas/BIRAX/quote
https://finance.yahoo.com/quote/BIRAX/”>Yahoo: BlackRock Sustain Advntg LgCp Core-InvA
https://ftcloud.fasttrack.net/web/chart/BIRAX
https://www.wsj.com/market-data/quotes/mutualfund/BIRAX
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