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iSHARES THEMATIC ETFs

THEMATIC INVESTING

Thematic investing focuses on forward-looking themes, including technological advancements like robotics and semiconductors, as well as consumer-driven trends such as electric vehicles and home builders. iShares provides ETFs, along with timely insights and portfolio analysis tools, to help advisors gain exposure to themes that are top of mind for their clients.

BITCOIN INVESTING

Embrace the future of finance by guiding your clients on exposure to Bitcoin. Uncover the pros, cons, and strategies to help them build a savvy digital asset portfolio.

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INVESTING THEMATICALLY

Thematic, sub-sector, country, & real asset ETFs offer precise exposures to capture the impact of mega forces. BlackRock offers the widest range of ETFs to help investors position their portfolios for these seismic shifts – from custom thematic exposures to those built around traditional market classifications.

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Thematic ETFs

Purpose-built to capture themes from bottom-up, often using a sector & geography-agnostic approach.

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Sub-sector ETFs

Focus on a specific subset of companies within an industry. Allowing investors to make targeted bets on particular themes.

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Region & Country ETFs

Target growth in specific geographies, driven by themes like geopolitics & demographics.

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Real Asset ETFs

Access tangible assets that have intrinsic value. Including exposure to commodities, real estate, infrastructure, & natural resources.

INTRODUCING MEGA FORCES

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WHAT ARE MEGA FORCES?

Mega forces are key areas of change that financial professionals must focus on in the coming years. Mega forces allow your clients to invest in trends that are expected to have a profound impact on the future of our global economy.

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Our 2024 Mid-Year thematic update focuses on two mega forces that are reaching critical inflection points -- the transformative advancements in artificial intelligence and the growing importance of geopolitics.

These mega forces are reshaping the global economy and, as a consequence, are impacting virtually all investors’ portfolios. So how should investors approach these mega forces for the rest of 2024 and beyond?

First, we believe the opportunity today in AI lies less in the digital world and more in the physical infrastructure supporting this technology. Artificial intelligence has transcended buzzword status and is getting rapidly integrated in businesses across the economy, from healthcare to financials and more. Yet as AI adoption takes off, its emergence is creating tremendous and immediate demand for hardware, for digital infrastructure and for power. Semiconductors, data centers, and even raw materials like copper are becoming the picks and shovels critical to AI’s growth with data centers alone requiring as much as $1 trillion of investment by 20301.

Second, geopolitics is reshaping supply chains and public policy, creating select opportunities. Bipartisan efforts in the US to support domestic production and critical industries like semiconductors and automobiles, are poised to drive a renaissance in U.S. manufacturing.

At the same time, select emerging markets like Mexico and India are even benefiting from growing trade and attractive labor pools. And finally, global competition in technology and AI highlights both the vulnerabilities and opportunities of the S&P 500’s largest sector2.

To learn more about these powerful mega forces and how to potentially capture these opportunities in your portfolio, please visit iShares.com/Insights.

Sources:

1: McKinsey & Company, “The semiconductor decade: A trillion-dollar industry,” 4/1/22. Forward looking estimates may not come to pass.

2: Sourced from Morningstar as of 6/12/24. The Information Technology sector holds the largest weight in the S&P 500 TR Index, accounting for 31% of the total.
Disclosures:

Carefully consider the Funds’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal.

Funds that concentrate investments in specific industries. sectors, markets or asset classes may underperform or be more volatile that other industries, sectors, markets or asset classes and the general securities market.

Technology companies may be subject to sever competition and product obsolescence.

International investing involves risk, including risk related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risk often are heightened for investments in emerging/developing markets and in concentrations of single countries.

This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.

Prepared by BlackRock investments. LLC, member FINRA.

© 2024 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK and iSHARES are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.

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LEARN ABOUT INVESTMENT THEMES MAKING HEADLINES TODAY

81% of global ETF investors plan on increasing exposure to thematic ETFs.⁴ Explore how iShares can help your clients potentially capture the trend.

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Artificial Intelligence

Exposure to companies at the forefront of robotics and artificial intelligence innovation.

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Semiconductors

Exposure to U.S. companies that design, manufacture, and distribute semiconductors.

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Emerging markets ex China

Exposure to emerging markets while maintaining flexibility for a tailored approach to invest in China.

ARE YOU POSITIONING YOUR PORTFOLIO FOR THE FUTURE?

Picking single stocks is hard. Broad indexes can water down your theme convictions. Mega forces may allow you to target high-conviction trends without going too broad, in an ever-evolving innovation landscape.

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Innovation has outpaced most large cap companies

Only 10% of the S&P 500’s largest companies have remained in the top 20 over the last two decades.1

Themes now span across multiple sectors

As examples, clean energy and EV supply chains involve companies across 6 different sectors.2 A single sector may no longer fully capture the complete value chain of a theme.

Innovation is happening beyond the US

In the last two decades, the U.S. contributed 23% to global R&D growth; while South & Southeast Asia contributed 46%.3

EXPLORE THEMATIC ETFs ALIGNED WITH MEGA FORCES

Artificial intelligence can automate laborious tasks, analyze huge sets of data and help generate fresh ideas. Digital disruption goes beyond AI.

Aging populations in major economies are poised to limit how much countries can produce and grow. By contrast, selected emerging market economies can benefit from younger populations and growing middle classes.

The transition to a low-carbon economy is set to spur a massive reallocation of capital as energy systems are rewired.

In a marked departure from the post-Cold War period of increasing globalization, we see countries favoring national security and resilience over economic efficiency.

A fast-evolving financial architecture is changing how households and companies use cash, borrow, transact and seek returns.

ACCESS MEGA FORCES IN A MULTI-THEMATIC TICKER WITH iSHARES EXPONENTIAL TECHNOLOGIES ETF (XT)

Through a single trade, XT provides exposure to nine pivotal themes driven by technological advancements, shifting demographics, changing consumer preferences, and evolving demand for finite resources.

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Innovation Leaders

Access global companies with significant exposure to exponential technologies, which displace older technologies, create new markets, and have the potential to create significantly positive economic benefits.

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Focus on Technology Producers & Users

The fund’s index employs a unique process that evaluates global stocks of technology producers and users across nine technology themes.

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Spans Global Sectors

Look to capture potential growth from firms driving technological advances across all areas of the economy.

EXPLORE LATEST THEMATIC INSIGHTS

Why Now May Be An Opportune Time For Active Value.

Nov 21, 2024 | BlackRock

With market breadth widening beyond mega cap technology, discover how an actively managed large cap value strategy can help balance one’s style exposure.

2025 Thematic Outlook: AI and geopolitics forge new paths

Nov 19, 2024 | BlackRock

Dive into thematic ETFs and learn how AI, geopolitics, and recent rate cuts are reshaping investment opportunities.

Investing Around the Election and the Government Debt Problem

Oct 31, 2024 | Rick Rieder

Rick Rieder explains how the US economy is resilient, the government debt issue and how to invest in stocks and bonds in the months around the election.

A New Advisor Tool to Assess AI Exposure

Oct 01, 2024 | Jay Jacobs

Learn how advisors may potentially add AI in portfolios with a new thematic tool to enhance both client conversations and investment analysis.

Moving the Needle

Sep 30, 2024 | Rick Rieder

Market Insight: Moving the Needle Rick Rieder and team outline an evolution of portfolio construction for the current environment.

Bitcoin: A Unique Diversifier

Sep 17, 2024 | BlackRock

Discover why bitcoin’s appeal to investors may lie in its detachment from traditional risk and return drivers.

Let’s Get Real (Rates)

Aug 27, 2024 | Rick Rieder

Rick Rieder and team highlight an incredible fixed income opportunity set and explain how to navigate periods of elevated uncertainty.

Can AI and technology stocks keep on keeping on? An expert take

Aug 22, 2024 | BlackRock

Technology stocks have largely powered ahead this year. Active equity investors Tony Kim and Reid Menge see good reason for the momentum to continue.

The Rebirth of American Manufacturing: Growth and Innovation

Jul 22, 2024 | Jay Jacobs

Discover how U.S. manufacturing could be poised for a renaissance, driven by a reshaping of supply chains and changing political and economic priorities

Abundant Income

Jun 20, 2024 | Rick Rieder

Rick Rieder and team argue that the economy is making further progress towards normalization and continues to offer a once-in-a-generation investing opportunity.

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