BlackRock Expands Megatrends Platform with the Launch of the Future Financial and Technology ETF

Rhea-AI Summary

BlackRock has launched the BlackRock Future Financial and Technology ETF (NYSE Arca: BPAY), enhancing its Megatrends platform. The actively managed fund focuses on firms driving innovation in financial services, with a specific aim of maximizing total returns. Lead Portfolio Manager Vasco Moreno noted a 30% increase in fintech usage during the pandemic in the U.S. BPAY is the sixth active ETF in BlackRock's U.S. Megatrends platform, boasting a 0.70% expense ratio. BlackRock manages over $50 billion in AUM across 44 thematic products.

Positive

• Launch of BlackRock Future Financial and Technology ETF (BPAY) expands Megatrends platform.
• Fund aims to maximize returns through investment in innovative financial technology companies.
• U.S. fintech usage rose by 30% during the pandemic, indicating potential growth in this sector.
• BPAY has a relatively low expense ratio of 0.70%.
• BlackRock manages over $50 billion in assets across 44 thematic products.

Negative

• Investing in the fund involves risks including possible loss of principal.
• The fund may suffer from high portfolio turnover compared to index-replicating funds.
• International investments carry additional risks related to currency and market volatility.

Leverages firm’s deep fundamental research expertise and strong active and index platforms

NEW YORK--(BUSINESS WIRE)-- BlackRock has expanded its Megatrends platform with the launch of the BlackRock Future Financial and Technology ETF (NYSE Arca: BPAY). The Fund is actively managed by BlackRock’s Fundamental Equity (FE) franchise and seeks to maximize total return by investing in companies delivering innovative and emerging technologies that are driving disruption within the financial services industry.

“In the United States alone, the use of fintech increased by 30% during the pandemic¹,” said Vasco Moreno, Lead Portfolio Manager of BPAY. “Through BPAY, investors are granted direct access to global companies that are driving the next leg of growth and leading the digital revolution in areas across the entire value chain such as payment systems, banking, investments, lending, and insurance and software.”

Fund Name	BlackRock Future Financial and Technology ETF
Ticker	BPAY
Portfolio Manager	Vasco Moreno
Reference Benchmark	MSCI ACWI Index
Expense Ratio	0.70%

BPAY is the sixth active ETF in BlackRock’s U.S. Megatrends platform, and the fifth from the FE franchise, which includes other future-focused actively managed thematic ETFs targeting technology, innovators, health, and environmental economy. The FE organization harnesses the power of human intellect, industry-leading technology and the global scale of BlackRock in their mission to deliver consistent, risk-managed alpha.

“With a long history in thematic investing, BlackRock is committed to providing access to forward-looking investment themes via targeted, transparent and cost-effective vehicles,” said Jay Jacobs, U.S. Head of Thematics and Active Equity ETFs at BlackRock. “BPAY is representative of the firm’s deep fundamental research expertise, strong active and index platforms, and focus on innovation.”

BlackRock offers the largest active and index thematic platform in the world, spanning 44 products with over $50 billion in AUM².

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well -being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock

About iShares

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 $2.78 trillion in assets under management as of June 30, 2022, 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 possible loss of principal.

The Fund is actively managed and does not seek to replicate the performance of a specified index. The Fund may have a higher portfolio turnover than funds that seek to replicate the performance of an index. Buying and selling shares of ETFs may result in brokerage commissions.

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 or 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 than the general securities market.

Technology companies may be subject to severe competition and product obsolescence. Performance of companies in the financials sector may be adversely impacted by many factors, including, among others, government regulations, economic conditions, credit rating downgrades, changes in interest rates, and decreased liquidity in credit markets.

The Fund's use of derivatives may reduce the Fund's returns and/or increase volatility and subject the Fund to counterparty risk, which is the risk that the other party in the transaction will not fulfill its contractual obligation. The Fund could suffer losses related to its derivative positions because of a possible lack of liquidity in the secondary market and as a result of unanticipated market movements, which losses are potentially unlimited. There can be no assurance that the Fund's hedging transactions will be effective.

Prepared by BlackRock Investments, LLC, member FINRA.
©2022 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.

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¹ Plaid 2021 Fintech Report, “The Fintech Effect”.
² BlackRock as of 7/31/2022, largest claim based on AUM; Morningstar’s Global Thematic Funds Landscape

View source version on businesswire.com: https://www.businesswire.com/news/home/20220818005149/en/

Media

Paige Hofman

Paige.hofman@blackrock.com

212-810-3368

Andreia Cheong-A-Shack

andreia.cheongashack@blackrock.com

646-634-5568

Source: BlackRock, Inc.

FAQ

What is the BlackRock Future Financial and Technology ETF (BPAY) launched in 2022?

The BlackRock Future Financial and Technology ETF (BPAY) is an actively managed fund focusing on companies innovating in the financial services sector.

What are the goals of the BPAY ETF?

The BPAY ETF aims to maximize total returns by investing in companies delivering innovative technologies disrupting financial services.

How much does BlackRock manage across its thematic products?

BlackRock manages over $50 billion in assets across 44 thematic products including BPAY.

What is the expense ratio of the BlackRock Future Financial and Technology ETF?

The expense ratio for the BlackRock Future Financial and Technology ETF (BPAY) is 0.70%.

How did BPAY's lead portfolio manager describe fintech usage in the U.S.?

Vasco Moreno, Lead Portfolio Manager of BPAY, reported a 30% increase in fintech usage in the U.S. during the pandemic.