BlackRock(BLK) The Motley Fool·2025-01-16 10:15Core Viewpoint - BlackRock, managing over 3.5 trillion in ETFs through its iShares subsidiary, which offers over 1,400 ETFs, including the iShares Expanded Tech Sector ETF that has outperformed the S&P 500 since its inception [1][2][10]. Group 1: iShares Expanded Tech Sector ETF Performance - The iShares Expanded Tech Sector ETF, established in 2001, has delivered better annual returns than the S&P 500, with a compound annual return of 11% since inception [2][10]. - Over the last 10 years, the ETF's compound annual return accelerated to 20.2%, significantly outpacing the S&P 500's 13.7% annualized gains [11]. - The ETF's top 10 positions account for 55.2% of its total value, with Nvidia, Meta Platforms, and Apple being among the largest holdings [4][3]. Group 2: Key Holdings and Their Performance - The top 10 stocks in the ETF generated an average return of 65.5% in 2024, outperforming the S&P 500's 23% gain [4]. - Notable stock performances include Nvidia with a 171.2% price change, Broadcom at 107.7%, and Netflix at 83.07% [5]. - The ETF also holds other popular AI stocks like Advanced Micro Devices and Palantir Technologies, which contribute to its growth potential [9]. Group 3: Future Outlook - Nvidia is expected to perform well in 2025 due to increased demand for its new Blackwell GPUs, which are crucial for AI model development [6]. - Meta is anticipated to have a strong year with the release of its advanced Llama 4 large language model and new AI features across its platforms [7]. - Microsoft and Alphabet are expected to enhance their AI models and continue strong growth in their cloud computing segments, which could positively impact their stock prices [8]. Group 4: Economic Impact of AI - Analysts estimate that AI will add 1 trillion upgrading data centers over the next four years to support AI demand, benefiting companies in the ETF like Broadcom and AMD [12].