BlackRock Launches New AI-Focused ETFs

(Reuters) – Asset management giant BlackRock (NYSE:BLK) on Tuesday launched two new exchange-traded funds (ETFs) to give investors exposure to the booming market for artificial intelligence.

Generative AI, which creates human-like interactions by processing vast amounts of data, has rapidly gained traction and is expected to be integrated across nearly all industries in the coming years, from technology to financial services.

> "As an investing theme, BlackRock views AI as a mega force with broad investing implications both now and in the long term," said the world's largest asset manager.

Asset managers are increasingly rolling out thematic ETFs to capitalize on the popularity of specific themes, sectors, or trends, differentiating them from traditional products that track broad market indexes.

However, demand for these products has been mixed recently, as investors show a preference for funds linked to stock market benchmarks, which are currently near record highs.

BlackRock's iShares A.I. Innovation and Tech Active ETF will invest in global AI and technology stocks across various market capitalizations. Its iShares Technology Opportunities Active ETF shares a similar investment objective, aiming for long-term capital appreciation by investing in global technology companies across sectors, including semiconductors, software, and hardware.

> "These active ETFs can help investors seize outsized and overlooked investment opportunities across the full stack of AI and advanced technologies," said Tony Kim, BlackRock's head of the fundamental equities technology group.

Earlier this month, BlackRock exceeded Wall Street's profit estimates for the third quarter, with its assets under management (AUM) reaching a record high due to a U.S. stock market rally that boosted inflows.

As of September 30, BlackRock's iShares business – which has over 1400 ETFs – recorded $4.2 trillion in AUM.