BlackRock Introduces Two New ETFs Focusing On AI, Tech: Retail Sentiment Fails To Improve

The world’s largest asset manager, BlackRock Inc ($BLK), on Tuesday launched two new exchange traded funds (ETFs) with a focus on technology and AI.

The iShares A.I. Innovation and Tech Active ETF ($BAI) will invest in a concentrated portfolio of approximately 20-40 global AI and technology stocks across all market capitalizations.

BlackRock said the ETF targets firms with revenue tied to one or more layers of the AI stack, including AI infrastructure, intelligence, and applications. The S&P 500 index will be the performance benchmark for the ETF, which will be managed by Tony Kim.

The iShares Technology Opportunities Active ETF ($TEK) will invest in a select portfolio of approximately 50-70 global technology companies across semiconductors, software, hardware, internet, services, content and infrastructure, and new industries.

The ETF has a similar investment objective, investment process, benchmark, and portfolio managers as the BlackRock Technology Opportunities Fund (BGSIX).

The MSCI All Country World IT 10/40 will be the performance benchmark for TEK, which will be managed by Reid Menge.

BlackRock stated that it sees AI as a mega force with broad investing implications, both in the present and in the long term, offering investors an opportunity to tap into a market that could be poised for significant growth.

“While the AI revolution is still in its early stages, BlackRock believes its long-term impact will be profound,” the firm stated.

BlackRock recently reported a record $221 billion of net inflows during the third quarter that took its assets under management (AUM) to new highs.

The firm said its AUM rose by $2.4 trillion year-over-year (YoY) to $11.5 trillion driven by significant net inflows and positive market movements. Its year-to-date inflows of $360 billion has already surpassed full-year net inflows seen in 2022 and 2023.

Despite the positive news, retail sentiment on Stocktwits dipped into the ‘bearish’ territory (44/100) from ‘neutral’ a day ago.

Meanwhile, shares of BlackRock have gained over 24% since the beginning of the year.

Also See: Chipotle Aims To Slash Hiring Time By 75% With AI Platform; Retail Turns Bearish Ahead of Earnings

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