Unconstrained index approach unlocks the power of innovation
driving megatrends across industries and geographies
iShares Cybersecurity and Tech ETF (IHAK) and iShares Genomics
Immunology and Healthcare ETF (IDNA) begin trading today
NEW YORK–(BUSINESS WIRE)–iShares today announces the launch of a megatrend investing framework,
including a new suite of exchange traded funds (ETFs) designed to
capture the structural shifts influencing the future of the global
economy and society.
BlackRock’s research, portfolio management, and Investment Institute
teams – informed by work with corporations, thought leaders and global
organizations – have identified five megatrends. These forces provide a
new investment framework that goes beyond traditional sector, market cap
and geographic classifications.
-
Technological Breakthrough: Technology is driving exponential
progress in the tech sector and far beyond -
Emerging Global Wealth: A newly affluent class of consumers
will expand in Asia and across emerging markets -
Climate Change and Resource Scarcity: Demand for a clean, green
tomorrow will advance energy and conservation -
Demographics and Social Change: Longer lifespans and modern
lifestyles will change medicine and consumer habits -
Rapid Urbanization: Mass migration to cities will require new
business models and infrastructure
iShares megatrend ETFs are unconstrained index equity ETFs that seek to
track indexes developed by leading industry index providers. The global
indexes target stocks with high return potential across relevant
industry value chains. For example, investment opportunities for
autonomous vehicles would include not just car-makers but also hardware
companies making road sensors and navigation cameras, and battery
manufacturers.
Armando Senra, Head of U.S., Canada and Latin America iShares, says:
“The iShares megatrend ETF suite seeks to capture the most powerful
investment trends driving the global economy today, and that we expect
to play out for decades to come. The ability for anyone to access these
targeted growth opportunities through an ETF represents the next
frontier of efficiency, transparency and the democratization of
investing.”
A powerful ETF technology for powerful forces
Today, iShares is also launching two new products – the iShares
Cybersecurity and Tech ETF (IHAK) and iShares Genomics Immunology and
Healthcare ETF (IDNA). IHAK provides investors access to companies
around the world that are helping fight the rise in cyber crime by using
cybersecurity solutions across hardware and software. The other, IDNA,
seeks exposure to companies worldwide at the forefront of medical
revolutions in the rapidly expanding fields of molecular biology and
mapping of genomes, and immunology.
Chad Slawner, Head of U.S. iShares Product and Strategy, says:
“This framework is the culmination of years spent analyzing and
observing broad structural changes shaping the world around us. We took
the best thinking from across our firm, including active investment
teams, to create our megatrends. Our mission is to provide efficient
ways to access these forces to improve long-term outcomes for clients.”
A long-term proposition
Megatrends ETFs can serve a number of roles in a portfolio, including as
alternatives for, or alongside, investment approaches that seek
above-benchmark performance over time. As the identified megatrends are
pervasive across industries and tend to be forward-looking, they
naturally resonate with investors and advisors seeking to capture future
alpha.
“For most people, trends like urbanization and technological
breakthroughs are intuitive growth stories with real impact on their own
lives,” says Armando Senra. “That’s the essence of megatrends ETFs,
providing investors with the shortest path possible to innovation that
is shaping the future.”
About BlackRock
BlackRock helps investors build better financial futures. As a fiduciary
to investors and a leading provider of financial technology, our clients
turn to us for the solutions they need when planning for their most
important goals. As of March 31, 2019, the firm managed approximately
$6.52 trillion in assets on behalf of investors worldwide. For
additional information on BlackRock, please visit www.blackrock.com |
Twitter: @blackrock |
Blog: www.blackrockblog.com |
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 800+ exchange traded funds (ETFs) and $1.9 trillion in assets under
management as of March 31, 2019, iShares continues to drive progress for
the financial industry. iShares funds are powered by the expert
portfolio and risk management of BlackRock, trusted to manage more money
than any other investment firm1.
1 Based on $6.52 trillion in AUM as of 3/31/19
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.
International investing involves risks, including risks related to
foreign currency, limited liquidity, less government regulation and the
possibility of substantial volatility due to adverse political, economic
or other developments. These risks often are heightened for investments
in emerging/developing markets and in concentrations of single countries.
Funds that concentrate investments in specific industries, sectors,
markets or asset classes may underperform or be more volatile than other
industries, sectors, markets or asset classes than the general
securities market.
Technology companies may be subject to severe competition and product
obsolescence.
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.
Prepared by BlackRock Investments, LLC, member FINRA.
©2019 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK
are registered trademarks of BlackRock, Inc., or its subsidiaries. All
other marks are the property of their respective owners.
Contacts
Theresa McCartney
[email protected]
646-310-1653
