##  [# BlackRock: AI and Geopolitical Fragmentation Are Key Themes](/sections/advisor-center/blackrock-ai-and-geopolitical-themes) 

 

# BlackRock: AI and Geopolitical Fragmentation Are Key Themes

 

 

\- ETF investors are looking to capitalize on the artificial intelligence theme.  
\- Geopolitical fragmentation is changing the landscape for technology, infrastructure, defense spending and the dollar.



 

 

 

 

 [![Malika](/sites/default/files/styles/author_image_icon/public/2025-03/Headshot%203.png?itok=STS0LyKG)](/authors/mallika-mitra) 

[By Mallika Mitra](/authors/mallika-mitra)

 Jul 11, 2025

 Edited by: David Tony

 

 

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Artificial intelligence (AI) and geopolitical fragmentation are creating new, long-term investing opportunities for investors in thematic ETFs, according to BlackRock’s [mid-year report](https://www.blackrock.com/us/financial-professionals/insights/thematic-investing-mid-year-outlook-2025) on the thematic investing space.

[Thematic ETFs](https://www.etf.com/sections/features/thematic-etfs-guide-markets-biggest-megatrends), which focus on specific industries or themes, such as defense and infrastructure instead of tracking a broad market index, have surged in popularity—and the menu of these funds is now larger than ever.

As of July, there are 357 thematic ETFs on the U.S. market with total assets under management of $165.9 billion, per FactSet data.

## Companies and Investors Are Focused on AI

It’s no wonder ETF investors are looking to capitalize on AI. BlackRock sees this technology’s intelligence levels, which are currently at the college level, to near the PhD level in the next five years and that of a Nobel Prize winner in the 2030s.

“The continued adoption and advancement of AI have wide-ranging implications, from straining energy infrastructure to fueling increased spending across big tech, along with potential downstream effects on the labor market,” the report, led by BlackRock’s Head of U.S. Equity ETFs, Jay Jacobs, said.

BlackRock reports that the total capital expenditure in segments that are building on and with AI—big tech, energy and utilities—is roughly equal to that of the rest of the S&amp;P 500 segments combined.

 
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## AI-Focused Thematic ETFs

There are 57 AI-focused ETFs traded on U.S. markets with a total AUM of $17.4 billion, according to FactSet data.

The four largest by AUM are the [**Global X Artificial Intelligence &amp; Technology ETF (AIQ)**](/AIQ) and the [**Global X Robotics &amp; Artificial Intelligence ETF (BOTZ)**](/botz), followed by BlackRock’s [**iShares A.I. Innovation and Tech Active ETF (BAI)**](/BAI) and the [**iShares Future AI &amp; Tech ETF (ARTY)**](/ARTY).

## Geopolitical Fragmentation Brings Opportunity 

As geopolitical fragmentation changes the landscape for technology, infrastructure, defense spending and the dollar, BlackRock’s report says there may be key areas for investors to find opportunities moving forward.

For instance, global competition in AI and electric vehicles may mean that U.S. companies with a domestic focus prove to be more resilient. BlackRock’s $680.8 million [**iShares U.S. Tech Independence Focused ETF (IETC)**](/ietc) is one example of an ETF designed to capitalize off of that potential resilience.



 

 

 [ Mallika Mitra ](/authors/mallika-mitra) 

 

 

  Mallika Mitra is an experienced business and financial journalist. Her work can be found in Barron's, Kiplinger, CNBC, Bloomberg News, Bankrate, USA…   [View Bio](/authors/mallika-mitra)

 



 

 


 Related Topics  [iShares](http://www.etf.com/topics/ishares) 

 [Blackrock](http://www.etf.com/topics/blackrock) 

 [Thematics](http://www.etf.com/topics/thematic-etfs) 

 [Artificial Intelligence](http://www.etf.com/topics/artificial-intelligence)