ETF provider BlackRock has redefined its underlying investment strategy for the iShares Future Tech Innovators ETF (ITEK) and cut the management fees by almost half as the firm continues its ongoing review of its local iShares product suite.
Established in 2022, ITEK is designed to provide investors with diversified exposure to a range of companies across automation and robotics, electric vehicles, digitalisation, healthcare innovation, smart city infrastructure, and clean energy.
In order to achieve this, the fund currently utilises six equally weighted technology-themed underlying ETF indexes:
- S&P Global Clean Energy Transition Index
- STOXX Global Breakthrough Healthcare Index
- STOXX Global Electric Vehicles & Driving Technology NET Index
- STOXX Global Smart City Infrastructure Index
- STOXX Global Automation & Robotics Index
- STOXX Global Digitalisation Index
However, from early October, the fund will shift its underlying investment strategy to focus on the 30 largest non-financial companies listed on the Nasdaq 100 Index. According to BlackRock, this index will still align with ITEK’s current approach while streamlining the fund’s structure under a single benchmark.
With this change, ITEK will be renamed the iShares Nasdaq Top 30 ETF to reflect the change. At the same time, the fund’s management fees will be reduced from 0.55 per cent to 0.30 per cent.
Speaking on the announcement, BlackRock Australasia head of global product solutions Steve Ead said the firm is committed to evolving its local offerings to better meet the needs of advisers and investors.
“While policy uncertainty and market volatility persist, AI remains a powerful structural megaforce. Its rapid adoption is driving productivity gains, supporting corporate earnings, and positioning mega-cap tech companies to benefit from long-term growth. We believe revising the fund’s investment objective and strategy to the iShares Nasdaq Top 30 ETF will give Australian investors targeted exposure to mega caps, enabling them to capture the long-term growth potential of these companies.”
“By reducing the fund’s fee from 55 bps to 30 bps, we’re delivering greater value by leveraging the scale of our global platform – making it one of the most affordable ways for Australian investors to access the 30 largest non-financial companies listed on the Nasdaq 100 Index.”
Earlier this year, BlackRock launched its first Active ETF in Australia with the development of the ASX-listed iShares US Factor Rotation Active ETF (IACT). This offers a “lower-cost entry point” to an actively managed US equities strategy in comparison to other active offerings currently available in the market, with annual fees of 0.45 per cent.
