BlackRock is set to acquire assets from an ETF issuer, tripling the size of its iShares fund. The $106 million iShares Large Cap Value Active ETF will receive a $200 million injection from the CornerCap Fundametrics Large-Cap ETF. This move is atypical for BlackRock, sparking curiosity in the industry.

CornerCap Investment Counsel, the advisor to the ETF being acquired, is exiting the fund advisory business. The transfer of assets to iShares is subject to a shareholder vote and will occur on Feb. 27. BlackRock is absorbing the FUNL assets into an identical ETF, with no comment on the fund reorganization.

BlackRock’s decision to absorb smaller ETF assets is rare but has precedents in the industry. Despite not needing to acquire assets, BlackRock will benefit from tripling the size of the BLCV fund. This move allows the company to maintain smaller ETFs even without significant interest.

Investors in the FUNL ETF may benefit from a slightly lower net expense ratio in the acquiring BLCV fund. While the top holdings differ, both funds are stylistically similar. BLCV has a track record of 20% returns in 2025, while FUNL has returned nearly 15% since its inception in 2020.

BlackRock’s unusual deal for a CornerCap ETF raises questions and interest in the market. The acquisition of assets from a smaller ETF issuer is a unique move for the asset manager. The transaction is set to take place at the end of February, with potential benefits for investors in both funds.

Read more at Yahoo Finance: BlackRock’s ‘Unusual’ Acquisition of CornerCap’s ETF