Megatrends are powerful, transformative forces that could change the global economy, business and society and have been changing the way we live for centuries.
Broad megatrends can’t be captured in a single investment, so we identify investable themes which are driven by one of more of these trends and are narrow enough to determine what falls within the theme but also deep enough to ensure they are diversified.
Capital at Risk: The value of investments and the income from them can fall as well as rise and are not guaranteed. You may not get back the amount originally invested.
Connect megatrends to investment themes
breakthrough ?
& social change ?
urbanisation ?
resource scarcity ?
global wealth ?
iShares funds (index)
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Ageing
Population
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Agribusiness View fund
Automation
& Robotics
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Digitalisation View fund
Digital
Security
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Electric Vehicles & Driving Technology View fund
EM Consumer
Growth
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Global Clean
Energy
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Global Timber & Forestry View fund
Global Water View fund
Healthcare
Innovation
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Inclusion &
Diversity
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BlackRock funds (active)
Technological breakthrough
New technologies lie at the heart of resolving or accelerating the five megatrends. Breakthrough innovation is necessary to address large-scale challenges (e.g. ageing economies, climate change), while new solutions are also targeting relatively minor problems (e.g. payments, streaming). This backdrop has created a fertile ground for disruptive innovation and Thematic investing.
Demographics and social change
Changes in global demographics will bring significant challenges and opportunities for societies and businesses. The forces that underpin this megatrend include ageing populations in advanced economies and China, the outlook for future jobs, immigration pressure, skills imbalance and the radically different priorities of younger generations.
Rapid urbanisation
Cities have always been hubs for talent, capital and innovation. In the last decade, hundreds of large cities have been built in emerging economies, attracting significant infrastructure investments. Large cities such as San Francisco, London, Paris and New York have also been the ideal launch pads for entrepreneurs given their large, dense populations. Understanding the advantages and challenges of future cities can help us identify the next sources of growth.
Climate change and resource scarcity
An expanding population and the rising demand for food, energy and materials continue to strain the finite resources of the planet. The need for solutions that improve energy efficiency, lower food waste and provide alternatives to scarce resources has never been greater. Underlying these trends is the persistent increase in global emissions which has led to intensifying debates around climate change and how we can resolve it.
Emerging global wealth
In the last twenty years, developing economies have been lifted by the rising tide of globalisation and manufacturing shifting to Asia. The emergence of a sizeable, aspirational middle class, particularly in China, has made it an important destination for global companies. We continue to expect emerging markets to offer significant growth potential for domestic and multinational firms.
Learn about megatrends
Find out more about the five megatrends shaping our investment thinking.
THEMATIC INVESTING WITH BLACKROCK & iSHARES
Learn more about thematic investing and why we believe in investing in the long-term trends transforming the way we live and work.
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