BlackRock seeks shareholder approval to turn a large-cap growth mutual fund into an iShares active ETF

BlackRock has filed a combined prospectus and proxy statement asking shareholders of BlackRock Advantage Large Cap Growth Fund to approve its reorganisation into iShares Enhanced Large Cap Growth Active ETF. The iShares fund is a newly formed series of BlackRock ETF Trust. After the transaction, the mutual fund would be liquidated.

Timetable

The special meeting is set for 18 December 2026 and will be held virtually. The record date is 23 October. If shareholders approve, BlackRock Fund Advisors expects the closing date to be 21 May 2027.

Fees and tax

The filing says the combined fund’s contractual and effective management fee rates are expected to be lower than the target fund’s advisory fee rates. Its net operating expenses are also expected to be lower than those of each existing share class, with waivers running through 30 June 2028. The reorganisation is expected to be tax-free. Cash would be paid in place of fractional ETF shares, and that cash may be taxable.

What holders need to do

Because a standalone ETF will not issue multiple classes of shares, and most ETF investors buy and sell through brokers, some shareholders may need to act. Those holding through a brokerage account that can accept ETF shares as of 14 May 2027, and still holding on 21 May, will become ETF shareholders automatically. Those whose brokerage account cannot accept ETF shares as of 20 May 2027 will instead have their investment liquidated and receive cash equal to its net asset value.

Costs

Reorganisation costs are estimated at $472,000, or 0.03% of the target fund’s net assets as of the pro forma date. The filing says the target fund will bear these costs whether or not the reorganisation goes ahead.

Why it matters

The proxy sets out in detail the practical steps of moving mutual fund investors into an ETF, including what happens to holders whose accounts cannot accept ETF shares.

Added to The Midpoint on 31 October 2026, with the ETFs section. This article is dated to the event it describes; it was not published at the time.

Sources

• Combined Prospectus/Proxy Statement: BlackRock Advantage Large Cap Growth Fund into iShares Enhanced Large Cap Growth Active ETF (Form 497), BlackRock ETF Trust via SEC EDGAR, 30 Oct 2026