iShares Trust files an effective prospectus for Future AI Beneficiaries ETF

iShares Trust on Monday made effective a prospectus for iShares Future AI Beneficiaries ETF AIBF, which would own U.S. companies Morningstar's equity research team scores as standing to cut costs or grow sales by adopting artificial intelligence, not the companies that sell it. That is the opposite end of the lineup from iShares Future AI & Tech ETF ARTY, a $4.04 billion fund of AI product and infrastructure companies as of Monday, with 49 names led by NVIDIA, Taiwan Semiconductor, Micron, and Advanced Micro Devices and a 0.47% expense ratio. The new fund's annual expenses are a 0.40% management fee, with other expenses estimated at 0.00% because it has not commenced operations. BlackRock Fund Advisors would manage it.

What AIBF would hold

The fund seeks to track the Morningstar US Artificial Intelligence Beneficiaries Select Index. Morningstar's equity research team scores whether a U.S. company is expected, over the next five years, to cut costs by more than 10% of its current cost structure or to lift net revenue by more than 10% through AI adoption, then targets 100 names. The index reconstitutes annually on the third Friday of December and rebalances quarterly. Aggregate weight in AI producers and suppliers is capped at 10%, which is how the rules keep AIBF from becoming another builder fund.

The fund is classified as non-diversified. The prospectus names NYSE Arca as the listing exchange.

As of its date, the prospectus reports no performance, no financial highlights, and no holdings. The SAI gives no ownership information for the same reason, and the filing does not state a first-trade date. Post-Effective Amendment No. 2,894 became effective Monday, September 14, under Rule 485(b). The SAI says the amendment relates solely to this series. The paper leaves a registered, effective, fully priced fund with no first trade, next to a sibling that already occupies the other side of the AI trade.