BlackRock has launched the iShares U.S. Manufacturing ETF (NYSE: MADE), expanding its thematic equity suite. This ETF aims to capture opportunities arising from the U.S. manufacturing renaissance, driven by recent policy initiatives that incentivize reshoring manufacturing activities.
The fund targets companies potentially benefiting from supportive policies and secular trends in American manufacturing. With an expense ratio of 0.40%, MADE tracks the S&P U.S. Manufacturing Select Index. Recent policies like the Infrastructure Investment and Jobs Act, Inflation Reduction Act, and Chips and Science Act have allocated $2.1 trillion to improve infrastructure and incentivize critical industries.
Since 2020, construction spending on U.S. manufacturing has nearly tripled from $78 billion to $234 billion as of May 2024. MADE invests in companies across various sectors, including consumer cyclicals, technology, automotive, defense, and construction.