Asset management giant BlackRock has unveiled two new exchange-traded funds (ETFs) aimed at giving investors access to the booming artificial intelligence (AI) market. The rise of generative AI, which creates human-like interactions by processing vast amounts of data, is expected to integrate into nearly every industry from technology to financial services in the coming years. BlackRock views AI as a significant force with extensive investment implications both for the present and the future.
Unlike traditional products that track broad market indices, asset management companies are increasingly launching thematic ETFs to capitalize on the popularity of specific themes, sectors, or trends. However, demand for these products has been mixed as investors gravitate towards funds linked to stock market benchmarks, which have been hovering near historical highs.
BlackRock's iShares A.I. Innovation and Tech Active ETF will invest in global AI and tech stocks across various market capitalizations. Similarly, the iShares Technology Opportunities Active ETF aims for long-term capital growth by investing in global tech companies in industries such as semiconductors, software, and hardware. Tony Kim, Head of BlackRock's Fundamental Equities Technology team, noted that these active ETFs can help investors seize overlooked investment opportunities in the field of AI and advanced technology.
Earlier this month, BlackRock surpassed Wall Street's expectations for its third-quarter profit, driven by a rebound in U.S. stock markets that fueled capital inflows. As of September 30, the firm's iShares business, with over 1,400 ETFs, managed $4.2 trillion in assets.
