BlackRock's three ETF themes to watch in 2024

we are a few weeks away from the new year there's a lot of uncertainty heading into 2024 more volatile macroeconomic environment paired with the possibility of higher for longer interest rates could significantly impact portfolios so how can investors find safer opportunities during these challenging times we want to bring in Jay Jacobs black rock us head of thematic and active Equity ETFs Jay Black Rock's thematic ETF Outlook reveals three key themes for 20 24 so why don't you take us through the headlines with regard to those themes sure the major takeaways here are one AI is going to be hitting really its inflection point not just as a proof of concept as a kind of new product on the Block but really as a product that can be commercialized generating billions of dollars of Revenue the second area we're looking at is medical Innovation we have aging populations in the United States around the world we're hitting serious inflection points like next year there will be more people over the age of 65 in the United States than under the age of 15 that is going to put immense pressure on our healthare system and result in new drug development and then finally we're looking at the rewiring of Global Supply chains how does the world look like after covid after the global financial crisis after brexit is we start to think about what we build in the United States and what we build with key Partners around the world Jay you know great to get some of these kind of core themes that we're going to be watching going into next year as well but when you think about about how much has already been kind of playing itself out in the market over the course of this year a lot of investors might ask well how much more growth on top of the Catalyst some of these that have been present for a few months now are we expecting to see well I think it's still early in a lot of these themes I mean if we look at Ai and look I know we've been talking about AI a lot this year a lot uh every day um really only a few companies have really gotten the AI bump um it's been the Magnificent 7 you've seen tremendous performance from those companies but we see literally over a hundred more companies that are really well positioned within the AI space to benefit from this new uh this new technology and this greater adoption of the technology so we look specifically at the tech stack of AI and you can see kind of where the market has been focused and where it hasn't been focused the market has been focused in two areas one is the platform developers those are the chat gpts and the clouds and the uh and the llamas that are developing these latest platforms and it's been focused on GP manufacturers that is missing who is building the CPUs which are important ships as we get more data and and develop more and more AI systems it's missing the digital infrastructure that's going to benefit from the proliferation of AI that needs to happen somewhere physically using uh data centers and warehouses uh and it's missing the applications that are being built using AI

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Id: PSEhMGHD2tQ

Length: 2min 51sec (171 seconds)

Published: Wed Dec 06 2023