BlackRock expands thematic ‘megatrend’ line-up with four new ETFs

Oct 2nd, 2020 | By | Category: Equities

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BlackRock has added a quartet of ETFs to its suite of thematic ‘megatrend’ strategies that go beyond traditional sector, market capitalization, and geographic classifications.

BlackRock expands thematic megatrend line-up with four new ETFs

BlackRock has expanded its suite of ‘megatrend’ ETFs with four new ETFs deploying active and passive strategies.

The ETFs, which consist of three actively managed funds and one index tracker, are designed to provide exposure to technology and healthcare innovators.

The active funds are managed by BlackRock’s Fundamental Active Equity unit and are branded as BlackRock ETFs, while the passive fund is linked to an NYSE FactSet index and dons the conventional iShares label.

The trio of active ETFs comprise the BlackRock Future Health ETF (BMED US), providing access to innovative and emerging companies in the healthcare sector; the BlackRock Future Tech ETF (BTEK US), which invests in companies developing innovative and emerging technologies in the technology sector, and the BlackRock Future Innovators ETF (BFTR US), offering exposure to innovative companies across sectors in the small/mid-cap growth category.

BMED is managed by Erin Xie, PhD, and currently has 137 holdings; it comes with an expense ratio of 0.85%. BTEK is managed by Tony Kim and presently has 103 holdings; it comes with an expense ratio of 0.88%. BFTR is managed by Phil Ruvinsky and currently has 63 holdings; it has an expense ratio of 0.80%. All three ETFs are fully transparent, disclosing portfolio positions on a daily basis.

Tony DeSpirito, Chief Investment Officer for Fundamental U.S. Active Equities, said, “The ability to innovate and capture disruption caused by innovation are critical to the success of active investors. Through these funds, our portfolio managers will be able to focus on secular changes disrupting our economy without being constrained by industries and sectors. We are excited to leverage iShares’ infrastructure to deliver these funds as active transparent ETFs, a first for our team.”

The passive ETF, the iShares Virtual Work and Life Multisector ETF (IWFH US), is linked to the NYSE FactSet Global Virtual Work and Life Index and delivers exposure to companies that derive the majority of their revenues from the sale of products, services, and technologies that empower individuals to work remotely and support an increasingly virtual way of life.

IWHF currently has 71 holdings, of which 80% by market capitalization reside within the conventional technology and communications sectors. It has an expense ratio of 0.47%.

Armando Senra, Head of iShares Americas, said, “The iShares Virtual Work and Life Multisector ETF will be the first to capture the globally diversified exposures representative of the trends that have been accelerated over the last six months. Around the world economic activity has already begun to shift as we become increasingly comfortable with a virtual and internet-dependent way of life and investors are looking for strategies to capture that change.”

All four ETFs have been listed on NYSE Arca.

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