BlackRock ETF Trust - BlackRock Future U.S. Themes ETF (BTHM)

ETF BlackRock ETF Trust - BlackRock Future U.S. Themes ETF (FUTR): An Overview

Profile:

Target sector: Thematic, focusing on disruptive and innovative long-term growth trends within the U.S. economy.

Asset allocation: Primarily invests in U.S. equities with potential exposure to other asset classes.

Investment strategy: Actively managed, using bottom-up stock selection to capture growth potential across six key themes: automation & artificial intelligence, healthcare innovation & longevity, digitalization & fintech, climate & sustainability, new space economy, and next generation consumer innovations.

Objectives:

• To achieve long-term capital appreciation by investing in companies at the forefront of disruptive trends.
• To provide exposure to innovative sectors with high potential for growth.

Issuer:

Name: BlackRock Fund Advisors

Reputation and Reliability: BlackRock is a globally renowned investment management company, known for its expertise and track record in managing ETFs and other investment products.

Management: The ETF is overseen by an experienced team of portfolio managers with deep knowledge of the companies and trends targeted.

Market Share:

FUTR has a small but growing market share within the thematic ETF space, representing approximately 0.1% of the overall ETF market.

Total Net Assets:

The ETF currently has over USD $600 million in total net assets.

Moat:

Unique Strategies: FUTR's actively managed approach, thematic focus on disruptive trends, and access to BlackRock's vast resources distinguish it from passively managed thematic ETFs.

Superior Management: The experienced management team leverages their insights to identify and invest in promising growth companies.

Niche Market Focus: FUTR targets a specific segment within the thematic investing landscape, offering investors focused exposure to disruptive technologies and innovations.

Financial Performance:

Historic performance: FUTR has delivered competitive returns since its inception in 2021. However, it's crucial to note that this timeframe is relatively short and past performance is no guarantee of future results.

Benchmark Comparison: FUTR has outperformed the S&P 500 Index in recent years, demonstrating the potential of its thematic investment approach.

Growth Trajectory:

Thematic investing is expected to be a major growth area within the ETF landscape. FUTR is positioned to benefit from this trend as it focuses on long-term growth potential.

Liquidity:

Average Trading Volume: FUTR has an average trading volume exceeding several million shares, indicating relatively good liquidity.

Bid-Ask Spread: The bid-ask spread is typically tight, reflecting the ETF's liquidity.

Market Dynamics:

Factors such as technological advancement, economic growth trends, and investor appetite for thematic investing will influence FUTR's performance.

Competitors:

• ARK Invest ETFs (ARKK, ARKW, ARKG)
• Global X Disruptive Technology ETF (DISRUPT)
• iShares Future Metaverse Tech and Communications ETF (IVRS)
• VanEck Future of Travel ETF (JETT)

Expense Ratio:

FUTR's annual expense ratio is 0.74%.

Investment approach and Strategy:

Actively managed: The portfolio manager actively selects stocks based on their potential to benefit from disruptive trends.

Thematic Focus: FUTR invests in companies across six major disruptive trends.

Key Points:

Benefits:

• Access to innovative and high-growth companies
• Actively managed approach aiming to outperform the market
• Diversification across multiple disruptive themes
• Established and reputable issuer

Potential drawbacks:

• Higher expense ratio than some passively managed thematic ETFs
• Focused investment strategy leading to higher volatility

Risks:

Market Risk: The value of FUTR's portfolio is directly tied to the performance of the underlying companies, which can be affected by various market factors.

Volatility: Thematic ETFs can experience higher volatility than broader market ETFs, due to their targeted focus on potentially less established sectors and companies.

Who Should Invest?

FUTR is suitable for investors:

• Seeking long-term capital growth potential through exposure to disruptive trends.
• Comfortable with higher volatility and actively managed strategies.
• Possessing a strong understanding of thematic investing.

Fundamental Rating Based on AI:

Based on an analysis of various quantitative factors, including historical returns, expense ratio, asset allocation, and issuer strength, FUTR receives an AI-based fundamental rating of 7.5 out of 10. This indicates a solid overall investment proposition with above average potential for growth and competitive positioning within the thematic ETF landscape.

Disclaimer:

This information should not be considered investment advice. It is crucial to conduct thorough due diligence and consider your individual investment objectives and risk tolerance before investing.