BlackRock Aims to Disrupt ETFs by Rethinking Sector Classifications

BlackRock aims to disrupt the sector ETF space by introducing a new classification system. Currently, State Street and Vanguard dominate the market, with BlackRock lagging behind. The existing classification systems, GICS and ICB, often misalign, leading to inconsistencies in sector categorization. BlackRock's new system seeks to address these issues by offering a more forward-looking approach, allowing companies like Amazon to be classified in multiple sectors. This innovation could potentially help BlackRock gain traction in the market.

What is one reason BlackRock is interested in disrupting the sector ETF market?

• They have not had much success in this area.

• They want to maintain their current market position.

• They are the market leader in sector ETFs.

• They have been highly successful in this area.

Which company is the leader in the sector ETF market according to the transcript?

• Vanguard

• BlackRock

• State Street

• Bloomberg

What is a key issue with the current sector classification methodologies?

• They are only used by BlackRock.

• They can lead to different classifications for the same company.

• They often align perfectly.

• They are universally agreed upon.

How does BlackRock's new classification system differ from traditional ones?

• It is more forward-looking and allows for multiple sector classifications.

• It mirrors the S&P sector classifications.

• It is less flexible and more rigid.

• It only uses the GICS methodology.

When did BlackRock launch their new sector ETFs?

• In December

• In June

• In March

• In January