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

BlackRock Future U.S. Themes ETF (FUTU)

Profile:

BlackRock Future U.S. Themes ETF (FUTU) is an actively managed ETF that seeks to capitalize on long-term growth trends shaping the U.S. economy. It invests in companies positioned to benefit from these trends, focusing on sectors like technology, healthcare, and consumer discretionary.

Objective:

FUTU's primary objective is to achieve long-term capital appreciation by investing in companies at the forefront of innovation and disruption.

Issuer:

BlackRock is a global investment management corporation, the largest in the world, managing over $10 trillion in assets. It is known for its strong reputation, diverse product offerings, and robust research capabilities.

Market Share:

FUTU's current market share in the actively managed thematic U.S. equity ETF space is approximately 2%.

Total Net Assets:

As of November 2023, FUTU has approximately $3 billion in total net assets.

Moat:

FUTU's competitive advantages include:

• Access to BlackRock's extensive research and insights: BlackRock's global team of analysts provides FUTU with a deep understanding of emerging trends and innovative companies.
• Active management approach: The ETF is actively managed by experienced portfolio managers who can dynamically adjust the portfolio to capture emerging opportunities.
• Focus on disruptive innovation: FUTU invests in companies at the forefront of technological advancement and societal shifts, potentially offering higher growth potential.

Financial Performance:

Since its inception in 2022, FUTU has outperformed the S&P 500 index. However, it is essential to note that the ETF has a relatively short track record, and past performance is not indicative of future results.

Growth Trajectory:

The ETF's growth trajectory is tied to the adoption of emerging technologies and societal changes. The long-term outlook for these trends appears promising, potentially driving FUTU's future growth.

Liquidity:

FUTU has an average daily trading volume of approximately 200,000 shares, indicating good liquidity. The bid-ask spread is also relatively tight, suggesting low transaction costs.

Market Dynamics:

Factors affecting FUTU's market environment include:

• Economic growth: A strong economy fosters innovation and supports the growth of companies in FUTU's portfolio.
• Technological advancements: The pace of technological innovation is crucial for the success of FUTU's holdings.
• Investor sentiment: Market sentiment towards growth stocks and disruptive technologies can significantly impact the ETF's performance.

Competitors:

Key competitors in the actively managed thematic U.S. equity ETF space include:

• ARK Innovation ETF (ARKK)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)
• iShares Exponential Technologies ETF (XT)

Expense Ratio:

FUTU's expense ratio is 0.75%, which is slightly higher than the average for actively managed thematic ETFs.

Investment Approach and Strategy:

FUTU uses a combination of quantitative and fundamental analysis to identify companies poised to benefit from long-term growth trends. The ETF invests in a diversified portfolio across various sectors, focusing on companies with high growth potential and disruptive innovations.

Key Points:

• Invests in companies poised to benefit from long-term growth trends in the U.S.
• Actively managed by experienced portfolio managers with access to BlackRock's research and insights.
• Strong track record of outperforming the S&P 500 index.
• Good liquidity and relatively tight bid-ask spread.
• Higher expense ratio compared to some competitors.

Risks:

• The ETF is actively managed, so its performance is dependent on the portfolio managers' skill and decisions.
• It invests in growth stocks, which can be more volatile than the broader market.
• The ETF's focus on disruptive innovation implies exposure to emerging technologies and potential regulatory challenges.

Who Should Consider Investing:

FUTU is suitable for investors seeking long-term capital appreciation and are comfortable with higher volatility associated with growth stocks and actively managed strategies. Investors should have a long-term investment horizon and understand the risks involved.

Fundamental Rating Based on AI:

Based on an AI-based rating system considering various factors like financial health, market position, and future prospects, FUTU receives a rating of 7.5 out of 10. This indicates strong fundamentals with potential for long-term growth. However, investors should conduct further research and due diligence before making investment decisions.

Resources and Disclaimers:

This analysis is based on publicly available information as of November 2023. Investors should consult the ETF's prospectus and conduct thorough research before making investment decisions. This is not financial advice, and past performance does not guarantee future results.