THE GREAT ACCELERATION
THREE PERMANENT TRANSFORMATIONS
Learn how permanent changes are unlocking exponential growth opportunities.
KEY TAKEAWAYS
From an industrial renaissance to medical breakthroughs and the rise of the new consumer, the market may be underestimating the opportunity for investors, created by permanent change.
An industrial renaissance
Permanent changes in the way goods are produced and transported are catalyzing a modern industrial renaissance. We look at trends in automation, infrastructure, self-driving and electric vehicles.
The upshot of medical breakthroughs
Healthcare has been transformed. mRNA vaccines and precision medicine are accelerating trends in genomics, immunology and neuroscience.
New consumers and the power of the purse
Millennials and the growth of emerging market consumers are revolutionizing spending and consumption. We focus on decentralized digital ecosystems and the future of food.
Tech gets physical again
Supply chain weakness and wage inflation require a reimagining of industry. While virtual technologies drove returns through the pandemic, innovation in physical tech is where solutions to production challenges are being built.
Robots are, in fact, our friends
From production to packaging, automation allows firms and employees to move faster and focus on high-value tasks. Robot sales had their strongest year ever in North America — up 28% from 2020.1 The future of industrial production means making robots our friends.
The shortest distance between two points
Transit times and shipping costs have skyrocketed and been exacerbated by infrastructure underinvestment. The solution is upgrading critical infrastructure — ports and railways — plus improving transportation itself — via electric and autonomous vehicles. So you can receive that last-minute birthday gift on time.
The upshot of medical breakthroughs
Non-COVID mRNA vaccines and faster precision medicine approvals for cancer and neurological diseases could enable longer, healthier lives.
A real-life cheat code
mRNA vaccines have the potential to treat some of the world’s most deadly and prevalent diseases – including HIV, malaria and the flu. Drugs targeting these areas are in late-stage trials, with promising commercial viability on the horizon and better care for our loved ones right behind.
Targeting the problem
Gene and cell therapies can inhibit disease-causing genes and cure more than ten thousand illnesses. Today, 70% of Alzheimer’s cases are genetic, and only a handful of genes are responsible.2,3 The lessons of the pandemic may drive faster approvals, allowing precision medicine to be far more within reach than the market may have realized.4
The power of the purse
Millennials and emerging market consumers are now the drivers of consumption, representing over 50% of global spending.5 Their preferences for decentralized finance and sustainable products are surging. But the market is underestimating the impact of these consumers setting new standards by voting with their (virtual) wallets.
The decentralized ties that bind
Blockchain tech is allowing independence and control of personal data while enabling financial inclusion for billions of unbanked consumers. Performance of many cryptocurrencies has surged since 2020, but the market has not appeared to price in the impact of blockchain adopters and enablers in transforming payments, contracts, and consumption.
Where’s the beef?
Global food production failed to meet the nourishment needs of 811 million people in 2020, while still contributing 34% to global emissions.6,7 Consumer demand for plant-based and alternative proteins is on the rise and looks to continue as new food innovations emerge. The future of food is here. And it’s delicious.
CONCLUSION
iShares Megatrend ETFs allow investors to harness exponential themes via diversified, transparent and cost-effective ETFs.
Owning one company, geography or industry — even the technology sector itself — can miss the broader trend of exponential change. Owning a targeted basket of securities poised to benefit from the emergence of a theme, regardless of sector or geography, can help solve this challenge for investors.
All of this comes together across iShares index ETFs that allow investors to capture stocks across the value chain of a particular theme — a do-it-yourself-approach — and in BlackRock active ETFs that allow portfolio managers to hand-pick companies and rotate across multiple themes and segments of a value chain — a do-it-for-me approach.
It may be hard to predict the pace of change ahead — or its implications. But BlackRock is here to help by delivering investor choice and progress to make it ever easier for all investors to purchase their very own share of the future.
iSHARES MEGATREND ETFs
Harness the power of these potential growth opportunities.