The Tell: How much thematic exposure do stock-market investors have? Here’s what BlackRock found.

by | Nov 15, 2023 | Stock Market

The dominant “Magnificent Seven” stocks in the S&P 500 index may have some investors expecting that they’re “well exposed” to thematic growth in their portfolios, but that might not be the case, according to BlackRock. “While they might think they have a lot, or a significant exposure, to a specific theme, they actually might have quite little,” said Jay Jacobs, U.S. head of thematics and active equity ETFs at BlackRock, in a phone interview. “People need to really intentionally allocate to them to get significant exposure.”

BlackRock analyzed a portfolio representative of U.S. wealth investors’ broad allocations to stocks, measuring its average weighting across different themes such as artificial intelligence, medical innovation and the “rewiring of globalization” that could benefit countries like Mexico and India, according to a new report from the giant asset manager.  “The results show low exposure to key themes, particularly when it comes to pure-play names, or companies that focus specifically on products or services related to a theme,” the firm found.

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