Core Insights - BlackRock is increasing its exposure to US equities and artificial intelligence, reflecting confidence in the US stock market's performance and potential growth in AI spending [1][3][4] Group 1: Investment Strategy - BlackRock's model portfolios are now 2% overweight in equities, shifting focus from international developed stocks to US stocks due to strong earnings performance [2][3] - The firm has seen significant inflows into its ETFs, with $3.4 billion entering the iShares S&P 100 ETF, marking its largest one-day influx [6] Group 2: Market Performance - The S&P 500 has reached all-time highs this year, driven by enthusiasm for AI and expectations of a Federal Reserve interest-rate-cutting cycle [3][4] - US corporate earnings have grown by 11% since Q3 2024, significantly outperforming developed markets, which have seen less than 2% growth [3][4] Group 3: AI Focus - BlackRock is shifting from a broad-based US tech ETF to an AI-focused fund, indicating a strategic pivot towards AI investments [7] - Nearly $1.4 billion flowed into the iShares AI Innovation and Tech Active ETF, while the iShares US Technology ETF experienced a loss of $2.7 billion [7] Group 4: Model Portfolio Growth - BlackRock's model portfolio assets have increased to approximately $185 billion, up from $150 billion earlier this year, highlighting the growing popularity of these investment strategies [5]