
BlackRock, the world's largest asset manager, has been at the forefront of the exchange-traded fund (ETF) revolution. BlackRock's new ETFs are designed to provide investors with a range of investment options and strategies.
BlackRock's iShares ETFs have been a game-changer in the investment world, offering low-cost and diversified investment solutions to investors. With over 800 ETFs to choose from, investors can select from a wide range of asset classes and investment strategies.
BlackRock's ETFs are known for their transparency, allowing investors to see the underlying holdings and fees associated with each fund. This transparency is a key benefit for investors, providing them with the information they need to make informed investment decisions.
BlackRock's new ETFs are designed to be easy to use, with a low minimum investment requirement and a user-friendly online platform for investors to buy and sell shares.
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BlackRock and Bitcoin
BlackRock's foray into Bitcoin has been a game-changer, with its iShares Bitcoin Trust (IBIT) becoming the most successful ETF launch ever, hitting $50 billion in assets in just 11 months.
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This milestone has broken records and helped drive Bitcoin past $100,000 for the first time, pulling in investors who were once skeptical about crypto. IBIT now holds more assets than BlackRock's gold ETF, which was the second-largest globally.
The speed at which IBIT has grown is remarkable, accounting for over 50% of the daily volume among Bitcoin ETFs. It also dominates trading, with options contracts averaging $1.7 billion in daily volume since IBIT became the first Bitcoin ETF to offer options trading in November.
IBIT's success has marked a significant turning point for Bitcoin, potentially boosting its legitimacy and acceptance in the financial market. It played a significant role in pushing Bitcoin's price above $100,000 for the first time, attracting both institutional investors and formerly skeptical individuals.
BlackRock's move into Bitcoin has given the crypto market a stamp of approval, with IBIT's growth contributing significantly to Bitcoin's 118% price rally this year. Since its launch, IBIT has had only nine days of outflows.
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iShares ETFs
iShares ETFs are a type of exchange-traded fund created by BlackRock, the largest asset manager in the world.
They offer a wide range of ETFs that track various market indices, sectors, and asset classes, giving investors exposure to different parts of the market.
One of the key benefits of iShares ETFs is their low cost, with many of them offering expense ratios as low as 0.07%.
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iShares Future Tech ETF
The iShares Future Tech ETF is a great way to invest in the future of technology. It gives you access to multiple disruptive tech themes shaping our future society in one fund.
Disruptive innovation is the name of the game here, with companies at the forefront of driving innovation well-positioned to experience significant growth. This ETF is a great way to tap into that growth potential.
The iShares Future Tech ETF is also a great way to diversify your portfolio. It offers return resilience through a well-diversified exposure across 35 countries, 11 sectors, and 914 stocks.
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Robotics and automation are two key themes driving future tech innovation. More than half of U.S. companies are increasing investments in automation due to Covid-19.
Social media is another area where tech innovation is driving change. With 3.8 billion estimated social media users globally, half the world is within a click of the button.
The world is also becoming increasingly urban, with 1 billion new urban dwellers expected between 2019 and 2030. This is driving demand for new technologies like electric vehicles and clean energy.
Electric vehicle sales are expected to rise 10x from 2 million in 2018 to 56 million by 2040. This is just one example of the growth potential of the iShares Future Tech ETF.
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Why Iyz Is a Top Choice
IYZ is a top choice for investors looking to tap into the US telecom sector.
The fund offers targeted exposure to this essential industry, with a portfolio of 19 holdings dominated by industry giants Verizon, AT&T, and T-Mobile.
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These companies provide essential services with stable cash flows, making them a potential value opportunity.
The ongoing rollout of 5G technology presents a substantial growth opportunity for the sector, with 5G seen as the requisite infrastructure for future digital technologies.
The fund's attractive yield and potential for 5G-driven growth balance both stability with growth potential.
Despite recent performance challenges, the fund's book value of 1.9x suggests a potential upside.
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IShares 3-7 Year Treasury ETF
The iShares 3-7 Year Treasury ETF is a great option for investors looking for a balanced approach. The fund tracks the ICE U.S. Treasury 3-7 Year Bond Index.
Its recent share price is $116.39, giving you a clear idea of its current value. This fund offers a unique blend of short-term stability and higher yields typically associated with longer-term bonds.
With 84 holdings, this ETF provides a diversified portfolio. The price to book ratio is N/A, which is expected for a bond ETF.
This ETF provides exposure to intermediate-term U.S. Treasury bonds, making it a solid choice for those looking to invest in this asset class.
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ETF Investing
ETFs offer diversification by holding a basket of securities bundled into a single wrapper. They provide liquidity not available to mutual funds and have lower fees compared to other investment vehicles.
Investors can look under the hood at any time to see what the funds are holding, making them transparent. BlackRock ETFs are considered suitable for long-term investing due to their lower fees and broad exposure.
iShares U.S. Telecommunications ETF
The iShares U.S. Telecommunications ETF is a great option for investors looking to gain exposure to the U.S. telecom sector.
The fund's recent share price is $22.30, and it has a concentrated portfolio of 19 holdings.
One of the key benefits of IYZ is its attractive yield, which balances stability with growth potential.
The fund's portfolio is dominated by industry giants Verizon, AT&T, and T-Mobile, making it a streamlined way to gain exposure to the U.S. telecom sector.
Here's a quick rundown of the fund's key statistics:
- Recent Share Price: $22.30
- Number of Holdings: 19
- Price to Book Ratio: 1.9
The fund's composition of companies providing essential services with stable cash flows offers a potential value opportunity, with a book value of 1.9x.
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Benefits of ETF Investing
ETFs offer diversification by holding a basket of securities bundled into a single wrapper, providing return resilience through exposure across multiple countries, sectors, and stocks.
With over 914 stocks and 11 sectors, the iShares Future Tech Innovators ETF provides a broad exposure to multiple disruptive tech themes shaping our future society.
Lower fees compared to other investment vehicles make ETFs a cost-effective option for investors.
BlackRock ETFs are considered by many investors due to their lower fees and broad exposure, making them a suitable choice for long-term investing.
Investors can look under the hood at any time to see what the funds are holding, providing transparency in ETF investing.
The ongoing rollout of 5G technology presents a substantial growth opportunity for the sector, with the iShares Future Tech Innovators ETF poised for some upside.
Despite recent performance challenges, the iShares Future Tech Innovators ETF's composition of companies providing essential services with stable cash flows offers a potential value opportunity.
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The transportation sector is a leading economic indicator, and the iShares Transportation ETF (IYT) can signal broader market trends, like increased consumer spending and industrial production.
Institutional money is flowing into Bitcoin, with new ETFs expanding access to this emerging market, and analysts predict they could surpass gold ETFs by 2025 if Bitcoin's price holds steady.
Investors can gain exposure to essential industries like telecommunications with the iShares US Telecommunications ETF (IYZ), which provides a streamlined way to invest in this sector.
The iShares Future Tech Innovators ETF makes it easy to invest in six key themes driving future tech innovation, including robotics and automation, electric vehicles, and clean energy.
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Choosing Criteria
I start with a large pool of options, over 400 iShares ETFs, and apply filters to find the best ones.
To ensure liquidity, I look for ETFs with at least $200 million in assets. This amount of money guarantees that the fund will be easy to buy and sell.
I prefer funds with 20 to 100 holdings, giving me a clear understanding of what I own. This range also ensures that the fund is not too concentrated in any one stock.
At least 50% of assets in the top 25 positions is also a must, so I can see where the majority of the fund's money is invested.
A three-year track record is necessary, balancing proof-of-concept with innovation. This timeframe allows the fund to establish its performance and risks.
I don't screen based on past performance or expense ratios, as I've learned that chasing performance can be risky.
Long-term price charts are also essential, as they help me visualize the fund's performance over time.
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Sources
- https://www.fxempire.com/forecasts/article/bitcoin-etfs-boom-blackrock-hits-50b-as-microstrategy-and-new-funds-shape-cryptos-future-1487100
- https://bravenewcoin.com/insights/blackrocks-ibit-etf-sets-historic-growth-pace-surpasses-50-billion-mark
- https://coinpedia.org/news/blackrocks-ibit-etf-breaks-records-as-fastest-growing-crypto-fund-bloomberg/
- https://www.blackrock.com/au/individual/ishares/future-tech-innovators
- https://www.forbes.com/sites/investor-hub/article/best-blackrock-etfs-to-invest-in-now/
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