BlackRock Bolsters Outcome ETF Suite with Nasdaq Premium Income Strategy

Key Terms

option premiums financial

Option premiums are the price paid to buy a call or put option — think of it as the cost of an insurance policy or a lottery ticket that gives you the right to buy or sell a stock at a set price. The premium matters to investors because it is the upfront cost that determines potential profit or loss, and it reflects market views on how likely the option will become valuable (influenced by the stock’s price, time until expiry, and expected volatility).

call options financial

A call option is a contract that gives its buyer the right, but not the obligation, to buy a specific number of shares at a predetermined price within a set time. Think of it like a refundable reservation to purchase a stock later at today’s agreed price: investors use calls to profit from expected price rises with smaller upfront cost than buying the stock outright, or to hedge and manage exposure, while the most they can lose is the amount paid for the contract.

ETF financial

An ETF, or exchange-traded fund, is like a basket of different investments such as stocks or bonds that you can buy or sell easily on the stock market, just like a regular share. It allows people to invest in many companies at once, making it a simple way to grow savings without picking individual stocks.

Nasdaq 100 Index technical

A stock market index made up of 100 of the largest companies listed on the Nasdaq stock exchange, excluding most banks and other financial firms. Think of it as a single scoreboard or basket that tracks how those big companies are performing overall; larger companies move the score more than smaller ones. Investors use it as a benchmark to gauge the health of growth- and technology-focused stocks and as the basis for many funds and trading products.

Designed to deliver monthly income from Nasdaq 100 exposure and option premiums

NEW YORK--(BUSINESS WIRE)-- Today, BlackRock expanded its outcome ETF suite with the launch of the iShares Nasdaq Premium Income Active ETF (Nasdaq:BALQ). BALQ aims to provide current income while capturing the growth potential of innovation leaders in the Nasdaq 100 Index.

Building on the strong momentum of the iShares U.S. Large Cap Premium Income Active ETF (CBOE: BALI), one of the fastest-growing iShares active ETFs this year, BALQ further strengthens BlackRock’s premium income offering and joins the firm’s expanding lineup of nearly 20 outcome ETFs. As demand for outcome-oriented strategies accelerates, BlackRock projects that U.S. outcome ETF assets will more than double to $650 billion by 2030, underscoring their growing role in modern portfolio construction and income generation.¹

BALQ provides investors income from two sources – long positions in equity securities and option premiums from selling call options on the Nasdaq 100. BALQ takes a dynamic approach to actively managing stock exposures and writing options, helping investors maintain upside participation during market rallies and adapt to evolving market conditions.

“The iShares active premium income duo – BALI and BALQ – offers investors useful building blocks for income-focused portfolios,” said Elise Terry, U.S. Head of iShares at BlackRock. “These strategies help wealth advisors and individual investors access upside potential with enhanced income – a strong combination for those seeking long-term income and growth solutions.”

Managed by a portfolio team led by Raffaele Savi, Global Head of BlackRock Systematic, BALQ draws on the firm’s 40 years of expertise in data-driven investing and disciplined portfolio construction, leveraging the scale and insights of BlackRock’s $378 billion Systematic platform.

BlackRock manages over $5 trillion in assets across its global ETF platform, including more than $100 billion in active ETFs.² With a continued focus on innovation and investor choice, BlackRock is committed to meeting evolving portfolio needs through the transparency and efficiency of the ETF.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock

About iShares

iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of approximately 1,700 exchange traded funds (ETFs) and approximately $5.2 trillion in assets under management as of September 30, 2025, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.

Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.

Actively managed funds do not seek to replicate the performance of a specified index, may have higher portfolio turnover, and may charge higher fees than index funds due to increased trading and research expenses. There is no guarantee that an active fund will meet its investment objective. There is no guarantee that any fund will pay dividends.

A fund's use of derivatives may reduce a fund's returns and/or increase volatility and subject the fund to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. A fund could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited. There can be no assurance that any fund's hedging transactions will be effective.

When a Fund sells call options on a large cap equity index, it receives a premium but it takes on the risk that these options may reduce any profit from increases in the market value of the long equity positions held by the Fund. Any such reduction in profits would be the difference between the payoff of the call option and the premium received. The Fund would also retain the risk of loss if the long equity positions decline in value. The premiums received from the options may not be sufficient to offset any losses sustained from the long equity positions. Factors that may influence the value of the options generally include the underlying asset’s price, interest rates, dividends, the actual and implied volatility levels of the underlying asset’s price, and the remaining time until the options expire, among others. The value of the options written by the Fund typically do not increase or decrease at the same rate as the underlying asset’s price on a day-to-day basis due to these factors. Options involve risk and are not suitable for all investors.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Nasdaq, Inc., nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with Nasdaq, Inc.

The iShares and BlackRock Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

©2025 BlackRock, Inc. or its affiliates. All rights reserved. iSHARES and BLACKROCK are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.

_________________________

1 BlackRock, as of March 27, 2025. Forward looking estimates may not come to pass.

2 BlackRock, as of November 5, 2025.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20251203873952/en/

Media Contact

Joanna Yau

Joanna.yau@blackrock.com

646-856-7274

Source: BlackRock