BlackRock, Inc. (NYSE:BLK) announced today that its iShares Exchange
Traded Funds (ETFs) business, the world’s largest manager of ETFs, has
launched the
iShares Exponential Technologies ETF (NYSEArca:XT). The new ETF,
which began trading on March 23rd, is based on an idea from Edelman
Financial Services, one of the nation’s largest independent financial
planning and investment management firms, and seeks to track the Morningstar®
Exponential Technologies Index.
XT is designed to provide global exposure to companies identified as
leaders across key areas of technological transformation – from big data
and analytics to nanotechnology and bioinformatics. These companies,
which also cross industry sectors such as manufacturing, financial
services and health care, have the potential to profoundly transform
society and may offer substantial investment growth opportunities.
Hollie Fagan, Head of BlackRock’s dedicated Registered
Investment Advisor business, commented: “We are thrilled
for the opportunity to collaborate with Edelman and Morningstar.
BlackRock is committed to client-led innovation, working to bring
liquid, transparent investment opportunities previously unavailable to
most investors. This ETF is testament to BlackRock’s willingness to
create innovative products when requested by a member of the financial
community and a continuation of our commitment to democratize access to
markets for all investors.”
Ric Edelman, Chairman and CEO of Edelman Financial Services,
commented: “We believe exposure to exponential technologies is an
important part of a globally diversified portfolio, and we are excited
that our clients will have efficient access to some of the leading
companies in this area through this ETF. BlackRock’s leadership position
in the ETF marketplace, Morningstar’s research and index-building
capabilities, and the outstanding reputation and high fiduciary
standards of both firms give us additional confidence in this investment
opportunity. We are especially pleased that BlackRock is making this
investment opportunity available to investors by developing it in an
ETF.”
Edelman was three times ranked the nation’s #1 Independent Financial
Advisor by Barron’s.1
To develop the index, Morningstar’s Equity Research team identified
companies that are at the forefront of nine technology trends that are
likely to disrupt a range of established industries. The trends include:
3-D Printing, Big Data and Analytics, Bioinformatics, Energy and
Environmental Systems, Financial-Services Innovation, Medicine and
Neuroscience, Nanotechnology, Networks and Computer Systems, and
Robotics.
Sanjay Arya, Head of Morningstar Indexes, commented: “The
Morningstar Exponential Technologies Index leverages our equity
analysts’ abilities to identify trends and businesses that will lead the
next wave of innovation and combines it with our index construction
capabilities. Exponential technologies move beyond the traditional
definition of technology to include entirely new categories such as
bioinformatics, financial innovation, energy, and environmental systems.”
The Morningstar Exponential Technologies Index is equally weighted and
Morningstar’s Equity Research team reassesses both the exponential
technology trends and constituents annually. Morningstar is one of the
largest providers of independent equity research, with more than 100
equity analysts around the world covering approximately 1,500 individual
companies.
Although inspired by Ric Edelman, neither he nor Edelman Financial
Services has received or will receive compensation from BlackRock or
Morningstar in connection with the development or operation of XT or the
index.
About BlackRock
BlackRock is a leader in investment management, risk management and
advisory services for institutional and retail clients worldwide. At
December 31, 2014, BlackRock’s AUM was $4.652 trillion. BlackRock helps
clients meet their goals and overcome challenges with a range of
products that include separate accounts, mutual funds, iShares®
(exchange-traded funds), and other pooled investment vehicles. BlackRock
also offers risk management, advisory and enterprise investment system
services to a broad base of institutional investors through BlackRock
Solutions®. Headquartered in New York City, as of
December 31, 2014, the firm had approximately 12,200 employees in more
than 30 countries and a major presence in key global markets, including
North and South America, Europe, Asia, Australia and the Middle East and
Africa. For additional information, please visit the Company’s website
at www.blackrock.com
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About iShares
iShares is a global leader in exchange-traded funds (ETFs), with more
than a decade of expertise and commitment to individual and
institutional investors of all sizes. With over 700 funds globally
across multiple asset classes and strategies and more than $1 trillion
in assets under management as of December 31, 2014, iShares helps
clients around the world build the core of their portfolios, meet
specific investment goals and implement market views. iShares
funds are powered by the expert portfolio and risk management of
BlackRock, trusted to manage more money than any other investment firm.2
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.
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 than the
general securities market. Technology companies may be subject to severe
competition and product obsolescence.
The Funds are distributed by BlackRock Investments, LLC (together with
its affiliates, “BlackRock”).
“Morningstar” and the “Morningstar Exponential Technologies Index” are
trademarks and services marks of Morningstar, Inc. These marks, along
with the underlying index with which they are associated, have been
licensed by BlackRock, Inc., for certain purposes. The Morningstar
Exponential Technologies Index serves as the tracking index for the
iShares Exponential Technologies ETF. This ETF is not sponsored,
endorsed, sold or promoted by Morningstar or any of its affiliates
(collectively, "Morningstar"), and Morningstar makes no representation
regarding the advisability of investing in this ETF.
©2015 BlackRock. All rights reserved. iSHARES and BLACKROCK
are registered trademarks of BlackRock. All other marks are the property
of their respective owners. iS-15046-0315
1 According to Barron’s, “The formula used to rank advisors
has three major components: assets managed, revenue produced and quality
of the advisor’s practice. Investment returns are not a component of the
rankings because an advisor’s returns are dictated largely by each
client’s risk tolerance. The quality-of-practice component includes an
evaluation of each advisor’s regulatory record.” Only advisors who apply
are ranked. “The Top 100 Independent Financial Advisors” was published
Aug. 27, 2012; Aug. 28, 2010; and Aug. 31, 2009. Ric Edelman is Chairman
and CEO of Edelman Financial Services, a Registered Investment Adviser,
and CEO, President and a Director of Pinnacle Summer Investments Inc. He
offers advisory services through EFS and securities through Sanders
Morris Harris Inc., an affiliated broker/dealer, member FINRA/SIPC.
2 Based on $4.652T in AUM as of 12/31/14
Copyright Business Wire 2015