We’re all getting older; might as well find a way to monetize it.
BlackRock announced a new lineup of four thematic exchange traded funds (ETFs) that capture investment opportunities created by the global trends towards an aging population, healthcare, robotics and digitalization.
The themes stem from what it calls “widely acknowledged megatrends, which are global economic, social, technological and demographic shifts that can have a major influence on everyday lives and are expected to become more important over the coming decades.”
The ETFs are based off of rules-based, systematic strategy indices built using proprietary databases. The underlying index for each fund has a minimum of 80 investments to avoid concentration.
“Megatrends are affecting the way we live and work,” Tom Fekete, Head of Product for iShares EMEA at BlackRock, said in a statement. “These ETFs look to capture the opportunities created by long-term structural trends, by identifying the companies most aligned to them. They are a new set of tools that investors can use to express their views on these trends, in a transparent, global and cost-efficient way.”
The new ETFs are:
- iShares Ageing Population UCITS ETF (AGED) – The index exposure is to companies positioned to benefit from the growing needs of an older global population. Sectors range from health insurance and pharmaceuticals to financials, aged-care and consumer services. By 2030, it is expected that 13 percent of the population will be 65+ representing 1 billion people.
- iShares Healthcare Innovation UCITS ETF (HEAL) – Companies focused on advancing specific aspects of the healthcare industry, including drug treatments, patient care or diagnostic tools. The healthcare market is projected to be worth $10.3trn by 2020 versus $7.2trn in 2013.
- iShares Automation and Robotics UCITS ETF (RBOT) – Companies which are innovating across technologies, including manufacturing robotics and wearable technology. Up to 45 percent of current global work activities could be automated using existing technology.
- iShares Digitalization UCITS ETF (DGTL) – Companies primarily focusing on cybersecurity, electronic payment processes and financial technology. Investments in financial technology have grown exponentially, rising from $1.8 billion in 2010 to $19 billion in 2015.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
