Want to be a millionaire by 2040? Here's how $200K today could grow to $1 million tomorrow with this BlackRock Tech ETF

A secret weapon has been unlocked for investors who want to turn $200,000 into $1 million by 2040. As per a report, BlackRock's iShares Expanded Tech Sector ETF could let investors earn a fivefold return.

Power of BlackRock’s iShares ETFs

According to reports, asset manager BlackRock has trillions of dollars in assets under its care and its iShares ETFs provide investors with exposure to a range of industries with more than 1,400 to choose from. One of the hottest of such industries currently is artificial intelligence and investors can benefit from it, reported The Motley Fool.

Big names at the forefront of AI innovation

According to The Motley Fool, the iShares ETF is technology-focused, with many of those companies heavily invested in AI. The fund invests in 289 stocks, with much of its value attached to big names such as Meta Platforms, Apple, Nvidia, and Microsoft. These players are at the forefront of AI development, ranging from Meta's efforts on large language models to Apple's AI-driven features on its products, and Nvidia's advanced GPUs powering AI systems across the globe, reported The Motley Fool.

Impressive returns over the years

Through the years, the iShares ETF has had fantastic returns. Since its launch in 2001, it has returned 11% yearly, outpacing the S&P 500 average of 8.5%, reported The Motley Fool. In the last decade, the advent of AI and cloud computing, took those returns to even higher levels, averaging approximately 20.3% yearly. If this growth carries on, then it may have your $200,000 of today becoming $1 million by 2040, depending on the return rate ranging between 9 and 16 years, as per the report.

A PWC report claimed artificial intelligence will add $15.7 trillion to the global economy by 2030. A lot of that value will be facilitated by the companies in the iShares ETF, as per the report.

Weighing the risks

While there is huge potential in AI, there are downsides as well. If the AI fails expectations, then prominent stocks in the ETF may lose out. The Motley Fool suggested diversifying one's portfolio to be on the safe side.

FAQs

What is Blackrock iShares Expanded Tech Sector ETF?
Blackrock iShares Expanded Tech Sector ETF is an exchange-traded fund. It holds a range of technology stocks, with many companies involved in artificial intelligence.

What are the largest companies in the ETF?
The ETF includes 289 stocks. The top holdings in major AI companies like Meta, Apple, Nvidia, and Microsoft.