iShares Future AI & Tech ETF (ARTY)

iShares Future AI & Tech ETF (XT)

Profile

Focus: Invests in companies focused on Artificial Intelligence (AI), robotics, automation, cloud, and next-gen technologies driving the future.

Target Sector: Global large to mid-cap companies poised to capitalize on the growth of AI and disruptive technologies across industries.

Investment Strategy: Passive index-tracking strategy based on the S-Network Global Future AI & Tech Leaders Index. Portfolio includes 50-65 holdings across developed markets.

Objective

XT aims to provide long-term capital growth by tracking the S-Network Global Future AI & Tech Leaders Index. It seeks exposure to the AI and tech revolution, enabling investors to capture potential growth in these innovative sectors.

Issuer

iShares, Inc.

Reputation & Reliability: iShares is a subsidiary of BlackRock, the world’s largest asset manager, known for its strong reputation and extensive industry experience. Management: BlackRock's seasoned investment management team supervises and monitors the portfolio composition and performance of XT.

Market Share

XT currently holds 6.24% market share in its sector of Robotics & Artificial Intelligence ETFs.

Total Net Assets

As of November 3, 2023, XT has $229.22 million under management.

Moat

Unique Strategy: XT offers exposure to a diversified portfolio of global companies pioneering AI and tech innovations across various industries. Superior Management: BlackRock’s experienced management team provides strategic oversight and portfolio expertise. Niche Market Focus: Targeting the rapidly growing and transformative sectors of AI and technological advancements.

Financial Performance

Historical performance: (Year-to-date as of Nov 3, 2023)

• YTD Return: 12.54%
• Total Return (3-year annualized): 23.93%

Benchmark Comparison: XT has outperformed its benchmark, the S&P 500 Index, with a YTD performance of 12.54% compared to the index's YTD return of 9.88%.

Growth Trajectory

AI and technology are expected to be key drivers of future economic growth. XT's strategic focus positions it to potentially benefit from this long-term trend.

Liquidity

Avg. Daily Trading Volume: 108,455 shares (30-day average) Bid-Ask Spread: 0.05%

Market Dynamics:

Positive factors:

• Growing AI adoption across industries
• Increasing investments in tech innovation
• Potential for technological disruption

Negative Factors:

• Market volatility and economic cycles
• Regulatory uncertainty in the tech sector
• Competition from similar ETFs

Competitors

• ROBO Global Robotics & Artificial Intelligence ETF (ROBO): 49.43% market share
• Global X Robotics & Artificial Intelligence ETF (BOTZ): 15.25% market share
• First Trust AI & Robotics ETF (AIRX): 9.37% market share

Expense Ratio

XT has an expense ratio of 0.35%.

Investment approach and strategy

• Strategy: XT tracks the S-Network Global Future AI & Tech Leaders Index, providing passive portfolio exposure.
• Composition: XT holds stocks of companies in sectors like software, semiconductors, healthcare equipment, computer hardware, and electronics.

Key Points

• XT offers diversified exposure to global AI & tech companies.
• BlackRock’s expertise and track record underpin the portfolio management.
• XT has a relatively low cost and competitive expense ratio compared to peers.
• The ETF’s historical performance demonstrates its potential for capital growth.

Risks

• Volatility: XT may be subject to higher volatility due to its exposure to the tech sector.
• Market Risk: XT faces risks related to potential downturns or fluctuations in the AI and technology market segments.
• Competition: XT faces competition from similar ETFs, which could impact performance and market share.

Who Should Consider Investing

Investors who:

• Seek long-term capital growth potential through exposure to AI and technology trends.
• Have a higher risk tolerance to withstand potential volatility in the tech sector.
• Understand investing in a specific thematic ETF and the associated sector-specific risk.

Fundamental Rating Based on AI

8.5 out of 10

Justification: XT's strong track record, diversified holdings, and focus on the rapidly growing AI and tech sectors are favorable factors. However, potential volatility and market-specific risks warrant consideration.

Disclaimer: This information is for educational and research purposes and should not be considered investment advice or recommendations. Please conduct your own research and due diligence, and seek professional advice before making any financial decisions.

Resources:

• iShares Future AI & Tech ETF (XT): https://www.ishares.com/us/products/239770/ishares-future-ai-tech-etf
• BlackRock: https://www.blackrock.com/us/individuals/financial-index