BlackRock has achieved a remarkable milestone in one of the most challenging times for the past decades. The 10 trillion AUM shows that ETFs are still exciting assets for institutional and retail investors. Just in the past quarter, more than $169 billion have been added to their balance sheet. All accumulated into long-term investment vehicles, such as ETFs and mutual funds.
The S&P 500 reached tremendous heights in the past year (27%) and is still hovering around an all-time high. This increase has greatly affected BlackRock’s AUM as well. CEO Larry Fink said in a statement, “Our business is more diversified than ever before.” He continued with, “Active strategies, including alternatives, contributed over 60% of 2021 organic base fee growth.” The CEO still voices out the priority to change towards an equal and sustainable future.
Stockpulse recognizes the importance ESG has played in the past two years. Alongside unique products where data and AI/ML have influenced ETF issuers to diversify their offerings. This strategy proved successful as it generates more interest from the younger generation of retail traders and provides the institutional community with the infrastructure to invest in new, exciting, high yield products.
So far, ESG products (ETFs) and AI/BigData have stayed separated. We see an upcoming trend where AI and ESG will merge to form unique product features that will continue drawing interest from the broader market participants. It also allows ETF issuers such as BlackRock to expand their assets under management and keep innovation on pace!
From the Stockpulse lab, we present you with a prototype for such a product with a unique insight into our AI and Deep Learning capabilities. The ESG iShares Europe index has been back-tested by our AI and Deep learning system. The strategy shows how our AI actively manages the strategy with the index as a benchmark. The best-performing stocks have been picked based on the highest buzz and sentiment for each quarter.
Voila! The result is an outperformance of a net 18%.