BlackRock (BLK.N), the world’s largest asset management firm, announced on Tuesday the launch of two new exchange-traded funds (ETFs) designed to give investors exposure to the rapidly expanding artificial intelligence (AI) market.
With generative AI technology gaining traction for its ability to simulate human-like interactions by analyzing vast datasets, BlackRock anticipates its integration across a wide array of industries, from technology to financial services, in the coming years. The firm views AI as a “mega force” with significant investment implications both in the present and the future.
The newly introduced ETFs reflect a growing trend among asset managers to create thematic investment products that target specific sectors or trends, diverging from traditional funds that typically track broad market indices. However, recent months have seen mixed demand for these thematic ETFs, as many investors have preferred funds linked to benchmark stock indices, which are currently nearing record highs.
BlackRock’s iShares A.I. Innovation and Tech Active ETF will focus on global AI and technology stocks across various market capitalizations. Meanwhile, the iShares Technology Opportunities Active ETF aims for long-term capital appreciation by investing in a diverse range of global technology companies, including those in the semiconductor, software, and hardware sectors.
“These active ETFs can help investors seize outsized and overlooked investment opportunities across the full stack of AI and advanced technologies,” stated Tony Kim, head of the fundamental equities technology group at BlackRock.
Earlier this month, BlackRock reported stronger-than-expected third-quarter profits, driven by a U.S. stock market rally that increased inflows. As of September 30, the firm’s iShares division, which manages over 1,400 ETFs, boasted a record $4.2 trillion in assets under management (AUM).
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