In an exclusive interview with Opto Sessions by CMC Markets, Jay Jacobs, US head of thematics and active equity ETFs at BlackRock identifies three investment megatrends that are changing our world, and outlines where investors can gain the best investment exposure to these growth trends.
What Are The Three Areas That Jay Jacobs Considers The ‘Drivers Of Progress’?
The industrial renaissance, the power of the purse and the upshot of post-Covid-19 medicine which is “one of the transformational changes happening in the healthcare space.” The power of the purse is best understood as the rising consumer, which has been driven by the growth in millennials’ buying power and increasing consumption in ever emerging markets. The industrial renaissance has grown from the underinvested industrial side of the economy – which has emerged as problematic. This has resulted in companies increasing their investments in the digitalisation of supply chains to deal with rising manufacturing costs.
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Which Spaces Are The Most Exciting For Investment?
BlackRock is most excited about the infrastructure, automation and robotics, and electric and autonomous vehicle spaces as “we’ve only really skimmed the surface” of it. There are a lot of different expressions of AI, whether this is at home or at work, but they are all very supportive of GDP growth moving forward. Nevertheless, it’s difficult to forecast exactly how powerful it will be as AI is a tool that we can apply to so many different parts of the economy.
Where Does BlackRock Come Into All Of This?
BlackRock’s iShares Robotics and Artificial Intelligence Multisector ETF [IRBO] looks at various segments, including the manufacturers of robots, developers of AI technology and the hardware behind it. On the industrial renaissance side, the fund issuer offers investors exposure to US-based infrastructure assets and enablers through its iShares Global Infrastructure ETF [INFR] and the EV/AV space through the iShares Self-Driving and Tech ETF [IDRV]. Each of these funds is looking at the entire ecosystem behind these themes. It’s not one company nor one segment, it’s really several segments that we see benefitting from the rise of these powerful megatrends.
To read the full article on CMC Markets website, click here.
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