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2023 Prospectus |
• | BlackRock Future Tech ETF | BTEK | NYSE ARCA |
Ticker: BTEK | Stock Exchange: NYSE Arca |
(ongoing expenses that you pay each year as a percentage of the value of your investments) | ||||||||||||
Management Fees1 |
Distribution and Service (12b-1) Fees |
Other Expenses2 |
Acquired
Fund Fees and Expenses1,2 |
Total
Annual Fund Operating Expenses |
Fee Waiver1,2 | Total
Annual Fund Operating Expenses After Fee Waiver1 | ||||||
( |
1 |
2 |
1 |
One Year | Since Inception | ||
(Inception
Date: |
|||
Return Before Taxes | - |
- | |
Return After Taxes on Distributions1 | - |
- | |
Return After Taxes on Distributions and Sale of Fund Shares1 | - |
- | |
MSCI ACWI Index2 (Index returns do not reflect deductions for fees, expenses or taxes) | - |
||
MSCI ACWI SMID Growth Information Technology Index3 (Index returns do not reflect deductions for fees, expenses or taxes) | - |
- |
1 |
2 | |
3 |
■ | selecting companies with the potential for rapid and sustainable growth from the development, advancement and use of technology; and |
■ | identifying companies that have above-average return potential based on factors such as revenue and earnings growth, estimate revisions, profitability and relative value. The factors and the weight assigned to a factor may change depending on market conditions. |
■ | Borrowing — The Fund may borrow for temporary or emergency purposes, including |
■ | Securities Lending — The Fund may lend securities representing up to one-third of the value of the Fund's total assets (including the value of the collateral received). |
■ | Temporary Defensive Strategies — For temporary defensive purposes, for example, to respond to adverse market, economic, political or other conditions, the Fund may depart from its principal investment strategies and may restrict the markets in which it invests and may invest without limitation in cash, cash equivalents, money market securities, such as U.S. Treasury and agency obligations, other U.S. Government securities, short-term debt obligations of corporate issuers, certificates of deposit, bankers acceptances, commercial paper (short-term, unsecured, negotiable promissory notes of a domestic or foreign issuer) or other high quality fixed income securities. Temporary defensive positions may affect the Fund's ability to achieve its investment objective. |
■ | Government intervention in issuers’ operations or structure; |
■ | A lack of market liquidity and market efficiency; |
■ | Greater securities price volatility; |
■ | Exchange rate fluctuations and exchange controls; |
■ | Less availability of public information about issuers; |
■ | Limitations on foreign ownership of securities; |
■ | Imposition of withholding or other taxes; |
■ | Imposition of restrictions on the expatriation of the funds or other assets of the Fund; |
■ | Higher transaction and custody costs and delays in settlement procedures; |
■ | Difficulties in enforcing contractual obligations; |
■ | Lower levels of regulation of the securities markets; |
■ | Weaker accounting, disclosure and reporting requirements and the risk of being delisted from U.S. exchanges; and |
■ | Legal principles relating to corporate governance, directors’ fiduciary duties and liabilities and stockholders’ rights in markets in which the Fund invests may differ from or may not be as extensive or protective as those that apply in the U.S. |
■ | Data Centers. Data centers face intense competition and potentially rapid product obsolescence, and many depend significantly on retaining and growing the consumer base of their respective products or services. In addition, data centers depend on a number of third parties to provide internet connectivity to data centers, which, if interrupted, may impact products and services. These companies may be especially affected by power outages or shortages, increased costs of energy or general lack of availability of electrical sources. Data centers are also potential targets for cyberattacks, which may have a materially adverse impact on the performance of those companies. |
■ | Healthcare. The value of healthcare-focused real estate may be affected by changes in federal or state regulation of healthcare providers and reimbursement rates to healthcare providers under Medicare, Medicaid and other public or private health insurance plans. Unlike less specialized commercial real estate, when tenants vacate healthcare-related properties, the ability of property management to find replacement tenants may be impaired by the properties’ specialized healthcare uses. |
■ | Hotels & Lodging. Hotel and lodging properties are management and labor intensive and particularly susceptible to the impact of general and local economic conditions. Unlike other types of properties, to meet competition in the industry, to maintain franchise standards, or to maintain economic values, continuing expenditures must be made for modernizing, refurnishing, and maintaining existing facilities prior to the expiration of their anticipated useful lives. |
■ | Industrial. Industrial real estate may be adversely affected by the supply of and demand for the specific products or services of the companies tied to the industrial real estate. The products of manufacturing companies may face obsolescence due to rapid technological developments and frequent new product introduction. Government regulations, trade disputes, world events and economic conditions may affect the performance of the companies tied to the industrial real estate. Companies tied to industrial real estate may be adversely affected by changes or trends in commodity prices. |
■ | Infrastructure. Infrastructure projects are subject to a variety of factors that could adversely affect their operations and value, including high interest costs in connection with capital construction programs, high degrees of leverage on properties, costs associated with governmental, environmental or other regulations, the effects of economic slowdowns, increased competition from other providers of services, uncertainties concerning costs, the level of government spending, and other factors. |
■ | Office. Office real estate may be affected by difficulties or delays with renewing leases or re-leasing spaces, potential adverse effects from major tenants’ bankruptcies or insolvencies, and changes in international, domestic and local economies. |
■ | Residential. Residential real estate may be affected by unique supply and demand factors that do not apply to other sub-sectors. Residential real estate may be particularly affected by changes in mortgage interest rates and housing supply and demand. |
■ | Retail. Retail real estate may be affected by changes in domestic and international economies, consumer confidence, disposable household income and spending, and consumer tastes and preferences. |
■ | Storage. Investments in self-storage real estate are subject to changes in demand levels for self-storage. In addition, self-storage operators may be liable for unplanned environmental and hazardous waste compliance costs associated with operating self-storage locations. |
■ | Timber. The timber real estate industry is affected by changes in international economic conditions, interest rates, weather cycles, changing demographics, environmental conditions and government regulations, among other factors. |
■ | High yield securities may be issued by less creditworthy issuers. Issuers of high yield securities may have a larger amount of outstanding debt relative to their assets than issuers of investment-grade bonds. In the event of an issuer’s bankruptcy, claims of |
other creditors may have priority over the claims of high yield securities holders, leaving few or no assets available to repay high yield securities holders. | |
■ | Prices of high yield securities are subject to extreme price fluctuations. Adverse changes in an issuer’s industry and general economic conditions may have a greater impact on the prices of high yield securities than on other higher rated fixed-income securities. The credit rating of a high yield security does not necessarily address its market value risk. Ratings and market value may change from time to time, positively or negatively, to reflect new developments regarding the issuer. |
■ | Issuers of high yield securities may be unable to meet their interest or principal payment obligations because of an economic downturn, specific issuer developments, or the unavailability of additional financing. |
■ | High yield securities frequently have redemption features that permit an issuer to repurchase the security from the Fund before it matures. If the issuer redeems high yield securities held by the Fund, the Fund may have to invest the proceeds in bonds with lower yields and may lose income. |
■ | High yield securities may be less liquid than higher rated fixed-income securities, even under normal economic conditions. There are fewer dealers in the high yield securities market, and there may be significant differences in the prices quoted for high yield securities by the dealers. Because high yield securities may be less liquid than higher rated fixed-income securities, judgment may play a greater role in valuing certain of the Fund’s securities than is the case with securities trading in a more liquid market. |
■ | The Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting issuer. |
BlackRock Future Tech ETF | |||||
Year
Ended 07/31/23 |
Year
Ended 07/31/22 |
Period
From 09/29/20(a) to 07/31/21 | |||
Net asset value, beginning of period | $21.00 | $36.28 | $25.25 | ||
Net investment loss(b) | (0.03) | (0.17) | (0.18) | ||
Net realized and unrealized gain (loss)(c) | 1.78 | (15.11) | 11.21 | ||
Net increase (decrease) from investment operations | 1.75 | (15.28) | 11.03 | ||
Net asset value, end of period | $22.75 | $21.00 | $36.28 | ||
Total Return(d) | |||||
Based on net asset value | 8.35% | (42.12)% | 43.68%(e) | ||
Ratios to Average Net Assets(f) | |||||
Total expenses | 0.88% | 0.88% | 0.88%(g) | ||
Total expenses after fees waived | 0.88% | 0.88% | 0.88%(g) | ||
Net investment loss | (0.17)% | (0.58)% | (0.64)%(g) | ||
Supplemental Data | |||||
Net assets, end of period (000) | $14,560 | $12,598 | $20,319 | ||
Portfolio turnover rate(h) | 68% | 51% | 38% | ||
(a) Commencement of operations. | |||||
(b) Based on average shares outstanding. | |||||
(c) The amounts reported for a share outstanding may not accord with the change in aggregate gains and losses in securities for the fiscal period due to the timing of capital share transactions in relation to the fluctuating market values of the Fund’s underlying securities. | |||||
(d) Where applicable, assumes the reinvestment of distributions. | |||||
(e) Not annualized. | |||||
(f) Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. | |||||
(g) Annualized. | |||||
(h) Portfolio turnover rate excludes in-kind transactions. |
Call: | 1-800-474-2737 (toll free) |
Write: | c/o
BlackRock Investments, LLC 1 University Square Drive, Princeton, NJ 08540 |