Investment management giant BlackRock, Inc. (NYSE: BLK) recently launched a new ETF focusing on financial technology, or fintech, companies.
The BlackRock Future Financial and Technology ETF will trade under the ticker name BPAY.
BlackRock Betting Big on Fintech
BlackRock’s new ETF will invest in companies across the globe that are delivering emerging technologies in the financial services domain.
The fund’s reference benchmark will be the MSCI ACWI Index, with an expense ratio of 0.70%. Notably, the fund will be managed by Vasco Moreno, who is the Global Financials and Fintech Portfolio Manager at BlackRock.
Meanwhile, the fund is an expansion of the company’s MegaTrends platform, with this being the sixth active ETF.
Hedge Funds Are Loading up on BlackRock Stock
Lately, hedge funds have turned optimistic about BlackRock and are increasing their position in the stock.
TipRanks’ Hedge Fund Trading Activity tool shows that hedge fund confidence in BLK is currently Very Positive. Moreover, the cumulative change in holdings across the 13 hedge funds that were active in the last quarter was an increase of 779,500 shares.
Is BlackRock Stock a Good Buy?
Overall, the consensus among analysts for BlackRock stock is a Strong Buy based on eight Buys and two Holds. The average BLK stock price prediction of $715.40 implies a downside potential of 4% from current levels. Shares have declined 17.5% over the past year.
Final Thoughts
The global fintech market is expected to grow rapidly over the next ten years, with revenue rising from $92.74 billion in 2018 to $189.52 billion in 2024, according to Statista. To that end, BlackRock’s new ETF is aimed at benefitting its investors from this trend by investing in global companies that are disrupting this space.
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