Three areas to focus on for growth


Amid higher interest rates and economic uncertainty, 2023 may be a challenging market to navigate. But that doesn’t mean growth-seeking investors need to sit on the sidelines. In environments like these, it could help to be precise. Investors may want to consider looking at exposures that have the potential to exhibit near-term resilience, and capture long-term structural growth opportunities. In this outlook, we highlight three areas that we believe are in the sweet spot for 2023 and beyond:

Fiscal spending in focus

Investors concerned about slower economic growth should consider prioritizing companies that grow agnostic of economic conditions. Clean energy, electric vehicles, and infrastructure are positioned for growth with trillions of new dollars in fiscal spending providing meaningful support.

Healthcare innovation

While innovators in healthcare fell out of favor in 2022, relatively inelastic demand for medicine coupled with potential breakthroughs in genomics, immunology and neurology, mean the space may be vastly underestimated.

Technology staples

When it comes to investing in tech, cybersecurity and robotics are building resilience to the economic cycle. Cybersecurity has moved from niche to necessity and robots are mission-critical in fighting supply chain challenges, labor shortages, and inflation.


Not all growth stocks are equal

During periods of trending markets, like strong rallies or steep selloffs, stocks often move in unison. From March 2020 to October 2021, a rising tide broadly lifted growth stocks. During this period, the NASDAQ 100 Index returned 105%, and over half of the underlying stocks returning more than 90%.1 When markets flipped in 2022, they sold off together. The NASDAQ 100 Index pulled back 32%, and more than half of the stocks in the index were down by more than 30% YTD.2

In 2023, the markets may not find such a clear direction as higher interest rates and deglobalization take us into unfamiliar territory. At the same time, 2022’s selloff across growth stocks may lure bargain hunters back into the market. And finally, economic weakness and persistent inflation are likely to have unequal impacts on various segments of the economy.

The bottom line: what worked in the past may not be the path to success in 2023. Investors may want to consider looking beyond broad exposure to tech or growth stocks to isolate slices of the market that have both near-term and long-term appeal. In our 2023 outlook, we highlight three segments that we believe could be well-suited for this environment.


Deeper wallets could help drive investments

Over $1.5T of U.S. government spending will be directed towards infrastructure, clean energy and electric vehicles over the coming years.3 Money earmarked for these priorities is just starting to be dispersed and fiscal spending can help accelerate the adoption of certain trends while also providing a ballast to the companies enabling them.

A person is charging the electric car
Clean energy & EVs

A virtuous cycle for clean energy & electric vehicles

A potential increase in demand could drive cost efficiencies

The Infrastructure Investment & Jobs Act and Inflation Reduction Act (IRA) are encouraging the adoption of renewable energy and EVs. Government spending should help companies realize efficiencies of scale while providing tax credits to consumers. This increase in scale and could jumpstart a recurring cycle of rising output and falling costs.

Cargo container yard

Upgrading our transport systems

Finding a strong foundation in infrastructure investments

The Infrastructure Investment & Jobs Act (IIJA) has allocated $1.2 trillion to help upgrade critical infrastructure projects around the country, including airports, railways, ports, and more.4 Amid higher inflation, infrastructure companies may find resiliency with their inflation-adjusted contracts and fixed interest rate debt.



The upshot of medical breakthroughs

Investors who sold healthcare stocks in 2022 may have underestimated their potential. Several innovations in healthcare are picking up speed and may reach a tipping point in 2023. These breakthroughs are impacting all aspects of health, from the treatment of genetic diseases to new ways to battle cancer.

Two doctors talking while sitting on the bench
Genomics & Immunology

Solving medical issues at the genetic level

New and efficient ways of fighting disease

Advancements in genomics and immunology are uncovering targeted and more effective treatments for some of the world’s most deadly and prevalent diseases – including cancer, HIV, and malaria. Several drugs targeting these areas are in late-stage trials, with promising commercial viability on the horizon and better care for our loved ones.

A woman reading book in a library

Targeted treatments for peace of mind

Mind bending advancements in neuroscience & neurotechnology

Breakthroughs in neuroscience are gaining traction in the fight against neurodegenerative diseases like Alzheimer’s and ALS while neurological devices are creating more effective prosthetics. With $151 billion slated for neurological therapies, these treatments may be available sooner than you think.5


Technology Staples

Tech staples separate from the pack

Tech-staples, like cybersecurity and robotics, may prove to be resilient amid tighter wallets.

plant growing

Cybersecurity — anything but discretionary

Increases in cyberattacks underline need for cybersecurity

Cyberattacks are up 81% over pre-pandemic levels and the potential loss from a breach could be catastrophic.6 As a result, companies and individuals may look to invest more in securing their digital assets and ETFs providing access to cybersecurity companies could benefit from a significant increase in cyber defense spending.

robotic arm

Robots are, in fact, our friends

Automation could combat inflation, labor shortages, and more

From production to packaging, automation allows firms and employees to move faster and focus on high value tasks. Adoption is already underway with revenue growth for robotics companies increasing by more than 25% in 2020 & 2021.7 The future of industrial production means making robots our friends.



iShares Megatrend ETFs allow investors to harness exponential themes via diversified, transparent and cost-effective ETFs.

Owning one company, geography or industry — even the technology sector itself – can miss the broader trend of exponential change. Owning a targeted basket of securities poised to benefit from the emergence of a theme, regardless of sector or geography, can help solve this challenge for investors.

All of this comes together across iShares index ETFs that allow investors to capture stocks across the value chain of a particular theme — a do-it-yourself-approach — and in BlackRock active ETFs that allow portfolio managers to hand-pick companies and rotate across multiple themes and segments of a value chain — a do-it-for-me approach.

It may be hard to predict the pace of change ahead — or its implications. But BlackRock is here to help by delivering investor choice and progress to make it ever easier for all investors to purchase their very own share of the future.


Harness the power of these potential growth opportunities.

Performance data represents past performance and does not guarantee future results. Investment return and principal value will fluctuate with market conditions and may be lower or higher when you sell your shares. Current performance may differ from the performance shown. For most recent month-end performance and standardized performance, click on the fund ticker above.