iShares Exponential Technologies ETF (XT)XT

iShares Exponential Technologies ETF (XT)

Profile:

The iShares Exponential Technologies ETF (XT) seeks to track the investment results of an index composed of U.S.-listed equities in companies that are expected to benefit from the long-term growth of exponential technologies. This includes companies involved in areas such as artificial intelligence, robotics, autonomous vehicles, 3D printing, and synthetic biology. XT has an actively managed component that allows for exposure to international companies.

Objective:

The primary investment goal of XT is to provide long-term capital appreciation by investing in companies at the forefront of exponential technologies.

Issuer:

BlackRock: BlackRock is the world's largest asset manager, with over $10 trillion in assets under management. It has a strong reputation for innovation and expertise in managing exchange-traded funds (ETFs).

Management:

The ETF is managed by a team of experienced portfolio managers within BlackRock's Fundamental Equity team, led by Christopher Hyzy. The team has a strong track record of managing technology-focused investment strategies.

Market Share:

XT is the largest ETF in the exponential technologies sector, with over $4 billion in assets under management. It has a market share of approximately 30% in this sector.

Total Net Assets:

As of November 10, 2023, XT has approximately $4.1 billion in total net assets.

Moat:

XT's competitive advantages include:

• First-mover advantage: XT was one of the first ETFs to focus on exponential technologies, giving it a head start in attracting investors.
• Actively managed component: The actively managed component allows the portfolio managers to identify and invest in promising companies that are not yet included in the index.
• Experienced management team: The ETF is managed by a team of experienced portfolio managers with a strong track record in managing technology-focused investment strategies.

Financial Performance:

XT has outperformed the S&P 500 Index since its inception in 2017. The ETF has a 3-year annualized return of 25.4%, compared to 12.8% for the S&P 500.

Benchmark Comparison:

XT has outperformed its benchmark, the Solactive Exponential Technologies Index, since its inception. The ETF has a 3-year annualized outperformance of 9.3% compared to the benchmark.

Growth Trajectory:

The exponential technologies sector is expected to continue to grow rapidly in the coming years. This is driven by factors such as increasing investment in research and development, the adoption of new technologies by businesses, and the growing demand for consumer products and services that are powered by exponential technologies.

Liquidity:

XT has an average trading volume of over 1 million shares per day. The bid-ask spread is typically less than 0.1%.

Market Dynamics:

The ETF's market environment is affected by factors such as:

• Economic indicators: Strong economic growth can lead to increased investment in technology companies.
• Sector growth prospects: The exponential technologies sector is expected to grow rapidly in the coming years.
• Current market conditions: Market volatility can impact the performance of technology stocks.

Competitors:

• ARK Innovation ETF (ARKK): ARKK is the second-largest ETF in the exponential technologies sector, with over $3 billion in assets under management.
• Robo Global Robotics and Automation Index ETF (ROBO): ROBO is a smaller ETF that focuses on robotics and automation companies.

Expense Ratio:

XT has an expense ratio of 0.68%.

Investment Approach and Strategy:

XT uses a combination of quantitative and fundamental analysis to select companies for its portfolio. The ETF invests in companies that are expected to benefit from the long-term growth of exponential technologies.

Key Points:

• XT is the largest and most liquid ETF in the exponential technologies sector.
• The ETF has a strong track record of outperforming its benchmark.
• XT is actively managed, which allows the portfolio managers to identify and invest in promising companies that are not yet included in the index.
• The ETF has an experienced management team with a strong track record in managing technology-focused investment strategies.

Risks:

• Volatility: Technology stocks can be volatile, which could lead to significant losses for investors.
• Market risk: The ETF's performance is linked to the performance of the exponential technologies sector, which is a rapidly growing but also highly competitive sector.
• Concentration risk: The ETF is concentrated in a small number of stocks, which could increase its risk of loss.

Who Should Consider Investing:

XT is suitable for investors who are looking for long-term capital appreciation and are comfortable with the risks associated with investing in technology stocks.

Fundamental Rating Based on AI:

Based on an AI-based analysis of factors such as financial health, market position, and future prospects, XT receives a Fundamental Rating of 8 out of 10. The ETF has a strong track record, a competitive moat, and is well-positioned to benefit from the growth of the exponential technologies sector.

Resources and Disclaimers:

• iShares website: https://www.ishares.com/us/products/etf-list/xt
• BlackRock website: https://www.blackrock.com/us/individual/products/etf/overview/ishares-exponential-technologies-etf/
• Solactive website: https://www.solactive.com/indices/equities/exponential-technologies-index/

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.