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Megatrends & thematic investing

Invest in the long-term trends transforming the way we live and work through our range of thematic solutions

What are megatrends?

Megatrends are powerful, transformative forces that can change the trajectory of the global economy by shifting the priorities of societies, driving innovation and redefining business models. They can have a meaningful impact not just on how we live and how we spend money, but also on government policies and corporate strategies.

The awareness of megatrends in investment processes offers real insights. Because of that, megatrends influence our investment decisions. 

What is thematic investing?

Thematic investing is an approach provides an opportunity to identify and isolate powerful themes and gain pure exposure to them via companies – across regions and sectors - with underappreciated growth prospects. At the centre of BlackRock's Thematic investing philosophy lies 5 megatrends shaping our future:
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Technological breakthrough
Technology is driving exponential progress in the tech sector and far beyond. More than 75 bn internet-connected devices are expected by 2025, up from 30 bn today.1
Rapid urbanisation
Rapid urbanisation
Mass migration to cities will require new business models and infrastructure. 2/3 of the world’s population will reside in cities by 2050, double that from 1950.2
Demographics and social change
Demographics and social change
Longer lifespans and modern lifestyles will change medicine and consumer habits. Some estimates project a 45% increase worldwide in people aged 60 or older by 2030.3
Climate change and resource scarcity
Climate change and resource scarcity
Demand for a green tomorrow will advance energy & conservation. 50% of the world’s energy is predicted to come from solar and wind by 2050, up from 7% in 2015.4
Emerging global wealth
Emerging global wealth
Newly affluent consumers will expand in Asia & across emerging markets. Emerging markets today are predicted to represent 6 out of the 7 largest economies by 2050.5

A confluence of these global megatrends is prompting structural shifts in many industries and changing the drivers of companies’ earnings.

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Thematics has come a long way in the last decade and has a long way to go in the next. We expect much greater focus on sustainability, on reporting, on data tools and better recognition of the complexity and opportunity in thematics.

Sumana Manohar
Head of Thematic Research

Thematic investing at BlackRock

BlackRock and iShares Thematic suite is positioned to access the long-term effects of these megatrends, using actively managed and index solutions. Our Thematic platform can offer:
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The breadth of our platform enables investors to find solutions that best match their interests, whether it is a specific theme or one that invests across multiple themes.
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Active and Index
Our expertise in active funds and ETFs enable us to decide if a theme is better suited for an index or active approach to best capture investment opportunities.
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Team Expertise
Our research capabilities seek to identify potential future winners across different sectors, geographies and investment styles.