The iShares Exponential Technologies (XT) exchange traded fund (ETF) pools some of the most innovative companies in the stock market. Biotechnology, big data, analytics, medicine, computer networks, environmental systems, robotics, and 3D printing are some of the fields represented in a portfolio of about 200 stocks.
“Exponential technologies displace older technologies, create new markets, and have the potential to effect significant economic impacts,” the iShares Exponential Technologies ETF prospectus says.
A research team at Morningstar creates the index, adding companies to the index that are deemed to be creators of groundbreaking technologies or users of such technologies. About 30% of the portfolio is in health care and another 30% in information technology. Components are about equally weighted in the portfolio, from 0.3% to approximately 0.9%.