iShares today launched two new thematic ETFs that target cybersecurity and genomics, expanding its focus on ETFs that fit into “megatrends.”
The new ETFs include the iShares Cybersecurity and Tech ETF (IHAK) and the iShares Genomics Immunology and Healthcare ETF (IDNA).
IHAK provides investors access to companies around the world that are helping fight the rise in cyber crime by using cybersecurity solutions across hardware and software. The other, IDNA, seeks exposure to companies worldwide at the forefront of medical revolutions in the rapidly expanding fields of molecular biology and mapping of genomes, and immunology.
The funds, listed on NYSE Arca with expense ratios of 0.47%, are part of the iShares megatrends suite.
The megatrends that the company identified include technological breakthrough, emerging global wealth, climate change and resource scarcity, demographics and social change, and rapid urbanization.
Megatrends ETFs can serve a number of roles in a portfolio, including as alternatives for, or alongside, investment approaches that seek above-benchmark performance over time, according to iShares. As the identified megatrends are pervasive across industries and tend to be forward-looking, they naturally resonate with investors and advisors seeking to capture future alpha.
“For most people, trends like urbanization and technological breakthroughs are intuitive growth stories with real impact on their own lives,” said Armando Senra, Head of U.S., Canada and Latin America iShares. “That’s the essence of megatrends ETFs, providing investors with the shortest path possible to innovation that is shaping the future.”
For more thematic investing strategies visit our Thematic Investing Channel.