BlackRock delivers enhancements to iShares tech ETF

BlackRock Australia has announced several updates to its iShares Future Tech Innovators ETF (ITEK) as part of its ongoing review into the locally-available iShares range.

The manager said the changes seek to better reflect the “evolving” investment appetites and goals of Australian investors and advisers.

The changes to come into effect from early October will see the exchange traded fund (ETF) be supported by a refined investment strategy that will focus on the 30 largest non-financial companies listed on the Nasdaq 100 Index. While this pivot will maintain some semblance of ITEK’s strong technology position given the index’s “emphasis on global technology-themed listed equities”, it will ensure the fund practices a more streamlined approach by tracking one index instead of six equally weighted underlying indexes.

According to a statement from BlackRock Australia, the ETF will switch from simultaneously tracking the S&P Global Clean Energy Transition Index, the STOXX Global Breakthrough Healthcare Index, the STOXX Global Electric Vehicles & Driving, the Technology NET Index, the STOXX Global Smart City Infrastructure Index, the STOXX Global Automation & Robotics Index and the STOXX Global Digitalisation Index, to just the 30 largest companies on the Nasdaq 100 Index.

This will also allow the fund to update its name to iShares Nasdaq Top 30 ETF. BlackRock also confirmed that the fund’s management fee will be lowered by 25 basis points from 0.55 per cent to 0.30 per cent.

“BlackRock is committed to continuously evolving our local iShares product suite to better serve Australian advisers and investors, ensuring our offerings remain relevant in a shifting macroeconomic landscape,” Steve Ead, Head of Global Product Solutions at BlackRock Australasia, said.

“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 55bps to 30bps, 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.”