BlackRock Inc., the world’s largest asset manager, is jumping further into the thematic exchange-traded fund arena.
The firm is focusing on creating ETFs based on what it calls “megatrends.” These forces “will change the trajectory of the global economy, drive innovation and redefine business models for decades to come,” BlackRock said in a note before a press conference in New York on Thursday.
To capitalize on these ideas, the firm recommends casting off traditional sector and geographic focuses for unconstrained equity exchange-traded funds.
The trends are: technological breakthrough, demographics and social change, rapid urbanization, climate change and resource scarcity, and emerging global wealth. BlackRock is creating two funds based on these themes: the iShares Cybersecurity and Tech ETF and the iShares Genomics Immunology and Healthcare ETF. They will trade as IHAK and IDNA, respectively.