BlackRock Launches New Thematic ETF, BTHM | ETF Trends

On Thursday, BlackRock launched its newest ETF, the BlackRock Future U.S. Themes ETF (BTHM), a fund that seeks to invest in a broad range of market themes within the U.S and includes structural trends that are long reaching as well as shorter-term trends that are impacting markets.

The fund seeks long-term capital appreciation by investing in equity securities within the U.S. that BlackRock believes have higher than average growth potential within industries that are working to define the global economy going forward. Equities invested in can include common stock, preferred stock, convertible securities, and warrants, and depository receipts.

Themes invested in can include emerging ones as well as structural trends, and the fund can participate in IPO investing. BTHM uses a model-based approach as well as systematic techniques to both identify themes and then represent them with securities.

The fund can participate in strategic transactions to manage its duration and risk exposures during times of market unrest. As risk protection, the fund can take temporary defensive positioning during periods of market turmoil or adverse performance by investing up to 100% of its assets in short-term, liquid investments; these can include high-quality, short-term securities.

At launch, the fund was heavily weighted into tech with a 47.57% allocation, followed by financials at 17% weighting, communication at 12.10%, and consumer discretionary at 10.69%, with several smaller allocations.

BTHM carries an expense ratio of 0.60% and currently has 121 holdings.

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