iShares U.S. Tech Breakthrough Multisector ETF (TECB)

Summary of iShares U.S. Tech Breakthrough Multisector ETF (TECB)

Profile:

TECB is an actively managed ETF that seeks long-term capital appreciation by investing in companies at the forefront of technological innovation across various sectors. It primarily focuses on the US market, with a flexible allocation across large-, mid-, and small-cap stocks in industries like artificial intelligence, robotics, and biotechnology.

Objective:

The ETF aims to invest in companies that are developing next-generation technologies with the potential to disrupt existing industries and create significant long-term growth opportunities.

Issuer:

BlackRock is the issuer of the ETF. BlackRock is the world's largest asset manager, with a strong reputation and track record in the financial industry. The ETF is managed by a team of experienced investment professionals with expertise in technology and growth investing.

Market Share:

TECB has a market share of approximately 0.5% in the actively managed technology ETF space.

Total Net Assets:

As of November 8, 2023, TECB has total net assets of approximately $1.2 billion.

Moat:

TECB's competitive advantages include:

• Active management: The ETF's active management approach allows portfolio managers to select and adjust holdings based on their research and conviction, potentially leading to outperformance compared to passively managed ETFs.
• Focus on disruptive technologies: The ETF's focus on identifying and investing in emerging technologies with high growth potential could provide exposure to future market leaders.
• Diversification across sectors: The ETF's investments are spread across various technology-driven sectors, mitigating single-sector risks.

Financial Performance:

TECB has delivered strong historical returns. Since its inception in March 2020, the ETF has generated a cumulative return of over 100%. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison:

TECB has outperformed the S&P 500 index over the same period, demonstrating the potential for active management to generate alpha.

Growth Trajectory:

The growth trajectory for TECB is positive, driven by the increasing adoption of technology across various industries. The ETF is well-positioned to benefit from the long-term growth potential of disruptive technologies.

Liquidity:

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

Market Dynamics:

The ETF's performance is influenced by various factors, including:

• Economic growth: Strong economic growth tends to favor technology stocks, potentially leading to higher returns for TECB.
• Interest rate environment: Rising interest rates can negatively impact growth stocks, potentially affecting TECB's performance.
• Technological innovation: The pace and direction of technological breakthroughs can significantly impact the ETF's holdings and performance.

Competitors:

TECB's key competitors include:

• ARK Innovation ETF (ARKK): 0.9% market share
• Global X Robotics & Artificial Intelligence ETF (BOTZ): 0.4% market share

Expense Ratio:

TECB has an expense ratio of 0.70%.

Investment Approach and Strategy:

TECB actively invests in companies that are identified as leaders in disruptive technologies. The ETF's portfolio is diversified across various sectors, including:

• Software
• Healthcare
• Industrials
• Semiconductors
• Communications

Key Points:

• TECB offers exposure to the long-term growth potential of disruptive technologies.
• The ETF's active management approach aims to generate alpha.
• TECB has a strong track record of outperforming the S&P 500 index.
• The ETF has a relatively low expense ratio compared to other actively managed technology ETFs.

Risks:

• TECB is a high-growth ETF, which comes with inherent volatility.
• The ETF's performance is dependent on the success of its underlying holdings.
• TECB is subject to market risks, including economic downturns and interest rate hikes.

Who Should Consider Investing:

TECB is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with high volatility.
• Believe in the long-term growth potential of disruptive technologies.

Fundamental Rating Based on AI: 8/10

TECB receives an AI-based rating of 8/10 based on its strong financial performance, active management approach, and focus on disruptive technologies. However, it is important to note that the ETF is relatively young and has a limited track record. Additionally, the ETF's high volatility may not be suitable for all investors.

Resources and Disclaimers:

• iShares U.S. Tech Breakthrough Multisector ETF website: https://www.ishares.com/us/products/239703/ishares-us-tech-breakthrough-multisector-etf
• Morningstar: https://www.morningstar.com/etfs/arcx/tecb/quote
• BlackRock: https://www.blackrock.com/us/individual/products/239703/ishares-us-tech-breakthrough-multisector-etf

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.