BlackRock writes that from an industrial renaissance to medical breakthroughs and the new consumer, its new recently published paper highlights how permanent changes have created underestimated investment opportunities.
“Today, there is more potential for rapid change than at any other point in history,” says Armando Senra, Head of Americas ETF and Index Investing at BlackRock. “The emergence of transformative growth trends, born of permanent changes in the way we live and work, have uncovered new investment opportunities for investors. We believe that there has never been a more exciting time for thematic investing which enables investors to own the future, regardless of how fast it unfolds.”
The firm writes that by leveraging the firm’s deep fundamental and quantitative research expertise and strong active and index platforms, it is positioned to identify long-term, structural changes it believes are driving the next phase of growth.
• New Consumer: Millennials are major spenders driving the global economy. Coupled with emerging spending power from developing market consumers, these new consumers’ unique preferences for decentralized digital ecosystems and greener goods could transform commerce.
• Industrial Renaissance: While virtual technology drove many investor returns through the pandemic, real-world, physical technologies are where innovation and return potential sit today. Global inflation and supply chain disruption make industrial investments in automation, infrastructure, and the future of transportation immediately critical.
• Medical Breakthroughs: The progress made in genomics, immunology and precision medicine technologies is at an inflection point, leading to an acceleration of medical breakthroughs and treatments. The lessons learned through the speed with which COVID vaccines came to market could help accelerate precision medicine treatments more broadly.
BlackRock has expanded its Megatrends suite with the launch of two new products – the iShares Emergent Food and AgTech Multisector ETF (IVEG) and the iShares Blockchain and Tech ETF (IBLC).
“The expansion of our megatrends line-up reflects the power of the millennial and rise of the self-directed investor, whose buying habits have reshaped mainstream consumer behaviors, and in turn, the companies in which they invest,” says Rachel Aguirre, Head of U.S. iShares Product at BlackRock. “We believe the moment is now to embrace these forward-looking investment themes before the market recognises their full potential.”
IVEG provides access to companies shaping the future of food by investing in agricultural technologies and innovative food products and services. IBLC seeks exposure to global companies at the forefront of development, innovation, and utilisation of blockchain and crypto technologies. The ETF does not invest directly in cryptocurrencies.