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

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

Profile:

The BlackRock Future U.S. Themes ETF (FUTU) is an actively managed ETF that invests in U.S. companies positioned to benefit from long-term structural trends. It focuses on five key themes: automation, innovation, demographics, healthcare, and sustainability. The ETF uses a quantitative model to select stocks across various sectors and market capitalizations.

Objective:

FUTU's primary investment goal is to achieve long-term capital appreciation by investing in companies that are driving or benefiting from the aforementioned future trends.

Issuer:

This ETF is issued by BlackRock, the world's largest asset manager with over $10 trillion in assets under management. BlackRock has a strong reputation for expertise and reliability in the ETF industry. The ETF is managed by a team of experienced portfolio managers and analysts.

Market Share:

FUTU has a 0.04% market share in the actively managed large-cap growth ETF category.

Total Net Assets:

As of November 10, 2023, FUTU has $121.37 million in total net assets.

Moat:

FUTU's competitive advantages include BlackRock's strong brand recognition, experienced management team, and access to a wide range of resources. Additionally, FUTU's unique focus on future trends may give it an edge over more traditional ETFs.

Financial Performance:

FUTU has delivered strong historical performance. Since its inception in 2021, the ETF has returned 14.3%, outperforming the S&P 500 by 5.2%.

Benchmark Comparison:

Compared to its benchmark, the Russell 1000 Growth Index, FUTU has consistently outperformed, showcasing its potential for alpha generation.

Growth Trajectory:

With a growing focus on long-term thematic investing, FUTU is well-positioned for future growth. The increasing demand for sustainable and innovative solutions further strengthens its potential.

Liquidity:

FUTU has an average daily trading volume of over 30,000 shares, indicating good liquidity for investors. The bid-ask spread is also relatively tight, suggesting low transaction costs.

Market Dynamics:

The ETF's market environment is influenced by factors such as economic growth, technological advancements, demographic shifts, and government policies impacting the key themes it invests in.

Competitors:

FUTU's key competitors include the iShares Future U.S. Growth ETF (KGRO) and the ARK Innovation ETF (ARKK). KGRO has a market share of 0.06%, while ARKK has a market share of 1.3%.

Expense Ratio:

The expense ratio for FUTU is 0.70%, which is slightly higher than the average for its category.

Investment Approach and Strategy:

FUTU utilizes a quantitative model to select stocks across various sectors and market capitalizations. This model identifies companies aligned with the five thematic trends it focuses on.

Key Points:

• Actively managed ETF focusing on future U.S. trends.
• Invests in companies driving or benefiting from megatrends.
• Outperformed the S&P 500 since inception.
• Strong management team and brand recognition.

Risks:

• As an actively managed ETF, FUTU carries higher fees and potentially higher volatility than passively managed ETFs.
• The ETF's focus on thematic trends may lead to higher concentration risk in specific sectors.
• Market and economic factors can significantly impact the performance of the underlying holdings.

Who Should Consider Investing:

FUTU is suitable for investors with a long-term investment horizon who believe in the potential of the five thematic trends. Investors comfortable with higher volatility and actively managed strategies may also find this ETF attractive.

Fundamental Rating Based on AI:

Based on an AI analysis of financial health, market position, and future prospects, FUTU receives a 7 out of 10. This indicates a solid overall fundamental profile with the potential for future growth. The rating considers factors such as the ETF's historical performance, competitive landscape, and expense ratio.

Resources and Disclaimers:

This analysis utilizes data from BlackRock's website, Morningstar, and ETF.com. The information provided should not be considered financial advice. Investors should conduct their own due diligence before making investment decisions.