As digital connectivity expands across the globe and transforms the way society interacts with technology, today BlackRock announces the launch of the iShares Cloud and 5G Multisector ETF (NYSE: IDAT).
IDAT seeks to track the investment results of the Morningstar® Global Digital Infrastructure & Connectivity Index. Morningstar’s forward-looking index uses fundamental Morningstar research to assess the 50 global firms across developed and emerging markets that have the potential to drive material net profit increases from infrastructure-as-a-service (IaaS) tools and/or 5G next-generation connectivity.
The Megatrends opportunity and the trajectory of the global economy
“With the recent acceleration of technological innovations to meet work-from-home demands, the explosion of e-commerce and revolutionary healthcare advances, the future has become the present,” said Chad Slawner, Head of US iShares Product. “The expansion of the iShares Megatrend lineup signals investor demand for precise access to strategies that go beyond traditional sector, market capitalization and geographic classifications.”
BlackRock believes there are five Megatrends primed to redefine every corner our lives over the next decade or two, momentum indicative of an investment horizon that transcends market cycles: Technological Breakthroughs; Demographics and Social Change; Rapid Urbanization; Climate Change and Resource Scarcity; and Emerging Global Wealth.
The convergence of 5G and Cloud emerges as an investment theme
The Infrastructure for the 21st century represents significant economic opportunity. IDAT concentrates on the handful of firms that the Morningstar’s Equity Research team believes are best positioned from the evolution of IaaS and 5G technologies that are driving the planet’s digital transformation.
“5G and cloud infrastructure participate in a virtuous cycle. Broader 5G connectivity leads to faster download speeds and the commercialization of technologies like autonomous driving and surgical robots – solutions which will create a surge of data creation and lead to increased demand for cloud-based data storage,” said Jeff Spiegel, Head of U.S. iShares Megatrend and International ETFs. “IDAT is an example of the critical tech-enabled innovation – in this case, the companies leading the race of delivering digital infrastructure – happening within key corners of equity markets.”
The iShares Megatrends lineup of BlackRock Megatrend traditional index ETFs and active transparent ETFs aims to provide all kinds of investors with choices when accessing BlackRock’s best thinking on transformative growth trends. For more information, please visit www.ishares.com/megatrends.
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iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 900+ exchange traded funds (ETFs) and $2.81 trillion in assets under management as of March 31, 2021, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.
Carefully consider the Funds’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing. Investing involves risk, including loss of principal.
International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/developing markets and in concentrations of single countries. Funds that concentrate investments in specific industries, sectors, markets or asset classes may underperform or be more volatile than other industries, sectors, markets or asset classes and the general securities market. Technologies perceived to displace older technologies or create new markets may not in fact do so. Companies that initially develop a novel technology may not be able to capitalize on the technology.
This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.
The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morningstar, Inc., nor does this company make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with Morningstar, Inc.
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