iShares U.S. Thematic Rotation Active ETF

iShares U.S. Thematic Rotation Active ETF (THRO) is an actively managed BlackRock fund. It uses quantitative models to pick U.S. stocks tied to several investment themes and held 240 stocks as of July 31, 2026. Its largest positions were Apple, NVIDIA, Microsoft, Amazon and Alphabet, a lineup much like an S&P 500 fund's. Its 0.57% expense ratio is far above the 0.08% average of similar funds.

• Over the year to Oct 27, 2026, THRO returned +14.2%, 1st of 9 among similar funds.
• Its worst full calendar year was 2025 (+15.0%); its best was 2025 (+15.0%).
• The deepest fall in its price history was 19.1% (Jan 23, 2025 to Apr 8, 2025), recovered by Jun 27, 2025.

As of Jul 31, 2026, the fund held 240 securities; the ten largest made up 44.77% of assets.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $2.24B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +6.87%, -0.60%, -1.27%.

The fund seeks long-term capital appreciation. It does not track an index. Under normal conditions, it puts at least 80% of its net assets in U.S. stocks that its manager, BlackRock Fund Advisors (BFA), believes can grow earnings faster than average. BFA uses a systematic framework built on proprietary quantitative models. The framework has three steps: identify themes, including emerging and structural trends; evaluate those themes and the companies tied to them; and build the portfolio. The fund aims to hold several themes at once rather than betting on a single one.

In practice, the result looks like a large-company U.S. stock fund. As of July 31, 2026, the top 10 holdings made up about 45% of assets, and technology stocks were about 37%. Apple (8.2%), NVIDIA (7.5%), Microsoft (6.5%) and Amazon (5.7%) led the list. Alphabet's two share classes added about 6.5% combined. Portfolio turnover was 45%, a measure of how much of the portfolio the manager replaced over the year.

The prospectus also allows derivatives such as futures, swaps and options. They can be used to manage risk, to stand in for stocks temporarily, or to try to add income or gains. Derivatives can magnify both gains and losses. As of July 31, 2026, the fund's only derivative was a tiny S&P 500 futures position, and cash was about 1% of assets.

• THRO charges 0.57% a year, versus an average of 0.08% for the similar funds below (9th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $58 in the first year and $714 over 10 years (assuming a 5% annual return).

It holds a broad mix of large U.S. stocks, but its model-driven thematic approach and 0.57% fee make it a better fit as a smaller position next to a low-cost core fund.

THRO launched in December 2021, so it has no record in the 2008 or 2020 crashes. It did go through the 2022 bear market. It lost 17.79% that year, its worst full calendar year, including 17.55% in the second quarter alone. The available price history starts in October 2024. In that period its deepest drop was 19.1%, from January 23 to April 8, 2025. It recovered by June 27, 2025, about 2.6 months later. A retiree who needed cash during a drop like that would have had to cash out shares at lower prices. Income is minor: the trailing yield was 0.29% as of October 27, 2026, paid quarterly. Costs add up too: the SEC's standard example puts expenses at $714 over 10 years on $10,000. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.