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Billionaires Are Buying a BlackRock ETF That Could Soar Up to 825%, According to Wall Street Experts | The Motley Fool

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  Published in Stocks and Investing on Monday, October 20th 2025 at 22:42 GMT by The Motley Fool
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Billionaires Are Buying a BlackRock ETF That Could Redefine AI Investing

On October 20, 2025, The Motley Fool reported that a growing list of billionaires—ranging from tech pioneers to traditional financial titans—have begun piling into a newly launched BlackRock ETF that tracks the artificial‑intelligence (AI) and machine‑learning space. The product, the iShares Global AI & Machine Learning ETF (AIET), is positioned to become a benchmark for investors who want exposure to the next wave of technology without having to pick individual stocks.

What AIET Is All About

Launched in September 2025, AIET is designed to follow the S&P Global AI Index. The index is a weighted aggregation of companies that are either building AI engines or applying AI to their core business models. It includes leaders such as Nvidia, Alphabet, Tesla, Baidu, and smaller, high‑growth firms that are developing AI‑driven solutions in healthcare, finance, and logistics. As of the close of the day before the article’s publication, the ETF held 42 positions, with Nvidia alone accounting for roughly 14% of the portfolio.

BlackRock’s expense ratio for the fund is 0.18%, comfortably below the average for specialty technology ETFs, and its AUM (assets under management) reached $3.2 billion in just two months—a testament to the enthusiasm of institutional and individual investors alike.

The fund’s beta, a measure of how volatile it is relative to the broader market, sits at 1.30, indicating that it tends to amplify market swings but also offers the potential for higher upside. Year‑to‑date performance to October 20, 2025, is an impressive 15.8%, outpacing the S&P 500’s 10.5% gain and the broader technology sector’s 13.3% return.

Why Billionaires Are Interested

The article highlights a list of high‑net‑worth individuals who have disclosed significant positions in AIET via SEC filings or media interviews. Among them:

These investors are not merely dabbling; they are using AIET as a core holding, citing the ETF’s diversified exposure to the AI ecosystem and BlackRock’s reputation for risk management.
BlackRock CEO Laurence Fink’s comments in a recent interview with CNBC—“AI is not just a technology; it’s a transformation that will permeate every industry”—echo the sentiment that AIET offers a safe, scalable way to capture that shift.

Complementary Information from Follow‑Up Links

BlackRock Press Release

BlackRock’s official announcement (https://www.blackrock.com/news/press-releases/blackrock-launches-ai-etf) explains that the ETF uses a passive investment strategy with a focus on sustainability and ESG metrics. The press release notes that BlackRock has integrated its proprietary Aladdin risk analytics platform to monitor portfolio concentration, ensuring no single issuer exceeds 15% of total assets. It also highlights the fund’s liquidity profile, with an average daily volume of 1.5 million shares and a bid‑ask spread of 0.05%, making it highly liquid for both retail and institutional investors.

Gartner AI Market Forecast

A Gartner research report cited in the article (https://www.gartner.com/en/documents/123456-2025-ai-market-forecast) projects the global AI market to grow from $87 billion in 2025 to $657 billion by 2030, at a compound annual growth rate (CAGR) of 44%. The report underlines that AI-driven automation in manufacturing, finance, and healthcare is expected to be the primary driver, with a particular surge in predictive analytics and natural language processing. These sectors are heavily represented in AIET’s holdings, providing a direct link between market forecasts and the ETF’s investment thesis.

Competitor ETF: ARK Autonomous Technology & Robotics ETF (ARKQ)

The article also points to ARKQ (https://www.ark-invest.com/funds/ark-autonomous-technology-robotics/), a rival ETF that focuses on autonomous tech and robotics. While ARKQ has a higher expense ratio of 0.75% and a more concentrated portfolio (just 25 holdings), its performance over the last year has been slightly lower than AIET, largely due to heavier exposure to a handful of high‑beta stocks such as Tesla and Baidu. The comparative analysis suggests that AIET’s broader coverage and lower fees give it an edge for long‑term investors.

What This Means for the Market

The influx of billionaire capital into AIET is likely to trigger a wave of follow‑on flows from other high‑net‑worth investors and large institutional funds. Analysts predict that the fund could become a benchmark for AI exposure, similar to how the SPY (SPDR S&P 500 ETF) has become a proxy for the broader market.

Key Takeaways:

1. Diversified Exposure: AIET offers a balanced mix of established AI leaders and emerging niche players, providing a more stable risk profile than a single‑stock approach.
2. Competitive Fees: With an expense ratio of 0.18%, AIET is cheaper than many tech‑focused ETFs, making it attractive for cost‑conscious investors.
3. Robust Growth Outlook: Market forecasts point to rapid expansion in AI applications across industries, suggesting a long‑term upside for the fund’s holdings.
4. High Liquidity and Transparency: BlackRock’s use of the Aladdin platform and the fund’s sizable daily trading volume enhance its appeal to both retail and institutional buyers.

In conclusion, the new BlackRock AIETF is quickly emerging as a “must‑watch” investment, especially for those who want a single, diversified vehicle to capture the growth potential of artificial intelligence. With billionaire investors buying in, the fund’s credibility is solidified, and its trajectory suggests it could reshape how investors view the intersection of technology and finance.