BlackRock has expanded its European offerings by launching one mutual fund and two ETFs designed to capitalise on the potential of artificial intelligence.
This AI suite aims to provide investors with long-term opportunities in technology and AI-related companies, highlighting BlackRock’s belief that AI will ” change the global economy, accelerating scientific breakthroughs and creating entirely new industries”.
The suite comprises the BGF AI Innovation Fund, a mutual fund offering global exposure to the AI ecosystem, and two ETFs: the iShares AI Infrastructure Ucits ETF and the iShares AI Adopters & Applications Ucits ETF. According to forecast by the BlackRock FE Tech Team, AI-related investments in infrastructure expected to surpass $270 billion in 2024 and grow to over $1 trillion long-term.
The BGF AI Innovation Fund, managed by Tony Kim and Reid Menge, is BlackRock’s flagship AI thematic equity strategy. This actively managed portfolio focuses on 20-40 “best ideas” stocks across AI development layers, from foundational infrastructure like cloud computing to practical applications such as data software. The fund leverages the expertise of BlackRock’s Silicon Valley-based Fundamental Equities Technology Group, which manages tech equity strategies.
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The iShares AI Infrastructure Ucits ETF targets technologies like semiconductors, cloud computing, and big data. Its portfolio, comprising approximately 40 stocks, identifies key players in AI infrastructure, market leaders, and innovators with significant patents. The ETF is listed on the London Stock Exchange, Euronext, and Xetra, with a total expense ratio of 0.35%.
With approximately 85 stocks, the iShares AI Adopters & Applications Ucits ETF focuses on companies that use AI in applications, services, and solutions, as well as those adopting AI outside the traditional tech value chain. It targets businesses in data-heavy industries like healthcare, finance, and mobility, where AI enhances operations and services. Both the ETFs follow a similar listing structure.
