Overview

BlackRock, the world’s largest asset manager, is significantly increasing its investment in artificial intelligence stocks within its $160 billion model portfolios, even as it reduces overall equity exposure due to concerns about global tariffs. The firm made a bold move by injecting $436 million into its iShares AI Innovation and Tech Active ETF (BAI), quadrupling the fund’s size in a single day, its largest inflow since launching in October.

This ETF is heavily weighted toward leading AI companies such as Nvidia, Broadcom, and Meta, and has surged 29% in the past month as risk assets rebounded from earlier trade-related declines. While BlackRock is scaling back on US growth stocks and shifting some funds into global value stocks and short-term bonds, AI remains its highest conviction theme within the technology sector. The company’s strategy reflects both the growing importance of AI in global markets and the need to manage risks amid ongoing trade uncertainties. These adjustments come as model portfolios which pre-built bundles of ETFs for advisers and institutions are continuing to grow in popularity, with industry forecasts predicting substantial expansion in the coming years.