BlackRock has launched four thematic exchange traded funds (ETFs) capturing investment opportunities created by the global trends towards ageing population, healthcare innovation, robotics and automation, and digitalisation.
The themes stem from widely acknowledged megatrends, which are global economic, social, technological and demographic shifts that can have a major influence on everyday lives and are expected to become more important over the coming decades.
In order to provide investors with exposure to these themes, BlackRock has collaborated with iSTOXX and FactSet to launch thematic indices.
They are rules-based, systematic strategy indices built using proprietary databases. The underlying index for each fund employs a unique revenue-focused methodology to ensure the most relevant companies for a given theme are consistently maintained. To avoid concentration risk, each index has a minimum of 80 constituents.
The funds are physically-replicating, meaning they buy the securities of the index, and each has a total expense ratio of 0.40%.
“Megatrends are affecting the way we live and work. These ETFs look to capture the opportunities created by long-term structural trends, by identifying the companies most aligned to them. They are a new set of tools that investors can use to express their views on these trends, in a transparent, global and cost-efficient way,” says Tom Fekete, head of Product for iShares EMEA at BlackRock.
“Research shows that the disruptive megatrends captured by the iSTOXX FactSet Thematic Indices will play a major role in the transition towards a digital, highly technological world that seeks to find alternatives to current healthcare approaches and effective solutions related to an increasing life expectancy,” said Matteo Andreetto, CEO of STOXX.