How BlackRock, the world’s largest money manager, is changing its market bets

black rock arrived in 2026 with a clear investment plan built around three pillars: artificial intelligence, income and diversification.

Jay Jacobs, head of exchange-traded funds at BlackRock, explained how ETFs fit into the market-changing bets of the world’s largest asset manager, which oversees more than $13 trillion from investors. Investors should remain focused on growth, he says, but precision will matter more than broad exposure.

“The first is knowing what are the biggest growth opportunities in the market today,” Jacobs said Monday on CNBC’s “ETF Edge.” “When you have to be laser-focused on trying to find some of these targeted exposures, like artificial intelligence, it could work really well in that environment.”

This and other investing themes shared by Jacobs on “ETF Edge” are consistent with BlackRock Annual Outlook for 2026“AI, revenue & diversifiers,” published earlier this week.

BlackRock continues to view AI as a long-term, capital-intensive investment cycle. Infrastructure spending remains highwhile productivity gains and profit growth are supported by AI-related investments. The firm does not consider that the theme is in the process of being exhausted.

BlackRock is among ETF companies offering AI-focused funds, such as its iShares AI Innovation and Tech Active ETFs (BAI), who has amassed over $8 billion in assets.

There are many other AI ETF options that have reached over $1 billion in assets in recent years:

• Roundhill Generative AI and Technology ETF (CAT)
• ETF Ark Autonomous Technology and Robotics (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, with a handful of large-cap technology stocks now accounting for an outsized share of returns, as one reason for fine-tuning stock exposure. THE “Magnificent Seven“Stocks represent more than 40% of S&P500 Hint.

“[That concentration] “It’s either a feature or a bug,” Jacobs said. “It’s reaching historic levels.”

Jacobs said investors are responding by becoming more thoughtful about how much concentration they want. Some choose to broaden their visibility by equal weighting of the US stock market as a means of managing risk.

Jacobs cited the interest rate environment and expects The Federal Reserve will lower its rates againas a reason to make income a major priority this year, amid falling interest rates pressure on cash investment returns. Investors who relied on money markets for income may have to reposition themselves. “We are in a falling interest rate environment. We expect reductions this year. We need to find new sources of income to diversify your portfolio and earn income from it,” Jacobs said.

Diversification is the third pillar of BlackRock’s market approach to 2026. Episodes of volatility are increasingly frequent as market dominance narrows and traditional portfolio design that relies on bonds to mitigate equity risks (typically the so-called 60-40 portfolio – prove less reliable in times of stress. As a result, Jacobs said investors are looking for assets that behave differently. “Where can you really diversify your portfolio?” » he said. “Something that’s going to behave differently than stocks and bonds.”

Jacobs’ underlying message was that investors have been very fortunate over the past decade with a U.S. stock market that has produced significant returns, but it would be risky to expect this trend to continue at the same rate. “Over the past 10 years, the S&P 500 has returned 13.5% annualized, and many expect it to be lower,” he said.