BlackRock Came to 2026 with a clear investment plan based on three pillars: artificial intelligence, income and diversification.
Jay Jacobs, BlackRock’s head of equity exchange-traded funds, shows how ETFs from the world’s largest asset manager, which oversees more than $13 trillion from investors, can adjust to fluctuating market rates. He said investors should focus on growth, but accuracy will be more important than broad exposure.
“The number one is the biggest growth opportunities in the market today,” Jacobs said Monday on CNBC’s “ETF Edge.” “You have to be laser focused on finding some of these targeted exposures, like artificial intelligence, which can work very well in this environment.”
These and other investment topics shared by Jacobs on ETF Edge are relevant BlackRock’s annual forecast for 2026“AI, Income and Diversifications” released earlier this week.
BlackRock continues to view AI as a long-term, capital-intensive investment cycle. Infrastructure costs are still highand productivity growth and revenue growth will be fueled by AI-related investments. The firm does not believe this topic is close to being exhausted.
BlackRock is one of the ETF companies offering AI-focused funds, such as its iShares AI Innovation and Tech Active ETFs (BAI), which has amassed more than $8 billion in assets.
BAI 1Y
There are many other options for AI ETFs with more than $1 billion in assets in recent years:
- Roundhill Generative AI & Technology ETF (CHAT)
- Ark Autonomous Technology and Robotics ETF (ARQ)
- Global X Robotics and Artificial Intelligence ETF (CLEANING)
- Global X Artificial Intelligence and Technology ETF (AIQ)
- iShares Future AI & Tech ETF (ARTY)
- Dan Ives Wedbush AI Revolution ETF (IVES)
Jacobs cited the high level of concentration in the U.S. stock market as one of the reasons for the fine-tuning of equity risk, with a handful of mega-cap tech stocks now accounting for a large share of returns. “Perfect seven“shares make up more than 40% S&P 500 Index.
“(This concentration) is either an opportunity or a mistake,” Jacobs said. “It’s reaching historic levels.”
According to Jacobs, investors respond by thinking about how much concentration they want. Some choose to broaden their exposure US stock market equity as a risk management approach.
Jacobs cited the interest rate environment and expectations The Federal Reserve is cutting rates againas a reason to make income a key focus this year as the rate of decline pressure income on cash deposits. Investors who rely on the money market for income may need to redeploy. “We’re in a declining interest rate environment. We expect some cuts this year. We need to find new sources of income to diversify your portfolio and generate income,” Jacobs said.
Diversification is the third pillar of BlackRock’s 2026 market vision. Volatility bouts are becoming more frequent when market leadership is narrow, and traditional portfolio designs that rely on bonds to smooth out exposure to stocks—typically It’s called a 60-40 portfolio — their confidence decreases during stress. As a result, Jacobs said investors are looking for assets that behave differently. “Where do you get diversification for your portfolio?” he said. “Something that behaves differently than stocks and bonds.”
Jacobs’ main message was that investors have been very happy with the US stock market, which has delivered significant gains over the past decade, but it would be dangerous to expect that run to continue at this rate. “Over the past 10 years, the S&P 500 has returned 13.5% annually, and many people expect that to be lower,” he said.