Two new exchange-traded funds (ETFs) were introduced by asset management giant BlackRock on Tuesday to expose investors to the rapidly expanding artificial intelligence market.
In the upcoming years, generative artificial intelligence (AI), which is intended to produce human-like interactions by analyzing enormous volumes of data, is anticipated to be incorporated into almost every industry, including financial services and technology.
“As an investment theme, BlackRock views AI as a mega force with broad investing implications both now and in the long term,” stated the biggest asset manager in the world.
Unlike traditional products that monitor broad market indexes, asset managers have been introducing themed exchange-traded funds (ETFs) to benefit from the popularity of specific themes, sectors, or trends.
However, investors’ preference for funds based on stock market benchmarks, which are close to record highs, has resulted in a mixed demand for these products in recent months.
Global AI and technology stocks of all market capitalizations will be invested in by BlackRock’s iShares A.I. Innovation and Tech Active ETF.
Laptops 1000Its iShares Technology Opportunities Active ETF has a similar investment goal: long-term capital growth through investments in multinational technology firms in industries such as hardware, software, and semiconductors, among others.
Tony Kim, head of BlackRock’s fundamental equities technology department, stated, “These active ETFs can help investors seize outsized and overlooked investment opportunities across the full stack of AI and advanced technologies.”
The asset manager’s third-quarter profit exceeded Wall Street forecasts earlier this month, and its assets under management (AUM) reached a new high as inflows were bolstered by a rebound in the US stock market.
With more than 1400 ETFs, the iShares business had $4.2 trillion in AUM as of September 30.
