ETF Evaluator:
iShares A.I. Innovation and Tech Act ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Technology Over the Last Year
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ETF Details
iShares A.I. Innovation and Tech Act ETF Overview
iShares A.I. Innovation and Tech Act ETF (BAI) is an actively managed Sector Equity Technology exchange-traded fund (ETF). iShares launched the ETF in 2024.
The investment seeks to maximize total return.
Under normal market conditions, the fund invests at least 80% of its net assets plus any borrowings for investment purposes in equity securities issued by U.S. and non‑U.S. artificial intelligence (“A.I.”) companies, technology companies and technology-related companies. The fund is non-diversified.
About iShares A.I. Innovation and Tech Act ETF (BAI)
There are 2 members of the management team with an average tenure of 1.78 years: Tony Kim (2024) and Reid Menge (2024). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and Morningstar Global AI Select GR USD index with a weighting of 100%. iShares A.I. Innovation and Tech Act ETF has 69 securities in its portfolio. The top 10 holdings constitute 46.8% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
iShares A.I. Innovation and Tech Act ETF is part of the Equity global asset class and is within the Sector Equity ETF group. iShares A.I. Innovation and Tech Act ETF has 29.7% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 69.0% There is 29.7% allocated to foreign stock, and 0.8% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). iShares A.I. Innovation and Tech Act ETF has 0.1% of the portfolio in cash.
Assets Under Management
The fund has $12 billion in total assets, which is above the $3 billion average for the Technology category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
BAI Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The iShares A.I. Innovation and Tech Act ETF expense ratio is average compared to funds in the Technology category. iShares A.I. Innovation and Tech Act ETF has an expense ratio of 0.55%, which is 2% higher than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. iShares A.I. Innovation and Tech Act ETF has a portfolio turnover rate of 107%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 39% for the Technology category.
Recently, in the month of July 2026, iShares A.I. Innovation and Tech Act ETF returned -21.4%, which earned it a grade of F, as the Technology category had an average return of -9.8%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
iShares A.I. Innovation and Tech Act ETF has a trailing yield of 1.43%, which is above the 0.45% category average.
The fund normally distributes its income semi-annually and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
iShares A.I. Innovation and Tech Act ETF Grades
Year to date, the ETF has returned 24.3%, 3.0 percentage points better than the category, which translates into a grade of B. The fund has returned 35.3% over the past year (grade of B).
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BAI Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| BAI Return (NAV) | -21.4% | -3.7% | 35.3% | na | na | na |
| BAI Return (Price) | -21.6% | -4.2% | 34.8% | na | na | na |
| NAV +/- Price Return | 0.194% | 0.459% | 0.446% | na | na | na |
| Technology Avg | -9.8% | 7.3% | 33.6% | 22.3% | 10.5% | 19.0% |
| BAI Grade (NAV) | F | F | B | na | na | na |
| +/- Category (NAV) | -11.5% | -11.0% | 1.7% | na | na | na |
| BAI Tax-Cost Ratio | na | na | 0.7% | na | na | na |
BAI Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| BAI Return (NAV) | 24.3% | 25.5% | na | na | na | na | na | na | na | na | na |
| BAI Return (Price) | 24.1% | 25.2% | na | na | na | na | na | na | na | na | na |
| NAV +/- Price Ret | -0.008% | -0.011% | na | na | na | na | na | na | na | na | na |
| Technology Avg | 21.3% | 23.2% | 19.9% | 43.8% | -35.8% | 16.7% | 53.3% | 37.8% | -3.2% | 33.7% | 15.0% |
| BAI Grade (NAV) | B | C | na | na | na | na | na | na | na | na | na |
| +/- Category | 3.0% | 2.3% | na | na | na | na | na | na | na | na | na |
| Risk Measures | |
| Beta: | na |
| R-Squared: | na |
| Standard Deviation: | na |
| Category Risk Index: | na |
| Category Risk Rating: | |
| Total Risk Index: | na |
| Total Risk Rating: | |
| Portfolio Characteristics | |
| Yield: | 1.4% |
| Total Assets: | $ 12,959 Mil |
| Share Class Assets: | $ 12,959 Mil |
| Turnover: | 107.0% |
| Expense Ratio: | 0.55% |
| Index Fund: | No |
| Index Tracked: | S&P 500 (TR) (1970) |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Semi-Annually |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 1.8 years | |||
| Average Tenure: 1.8 years | |||
| Managers (Year): Kim Tony (2024), Menge Reid (2024) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 69 |
| % in Top 10 Holdings: | 46.8% |
| Fund is Non-Diversified: | Yes |
| % in Foreign Issues: | 29.7% |
Portfolio Allocation |
|
| Domestic Stock: | 69.0% |
| Foreign Stock: | 29.7% |
| Preferred Stock: | 0.8% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.4% |
| Cash: | 0.1% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | iShares |
| Phone Number: | 800-474-2737 |
| Website: | www.blackrock.com |
| Inception Date: | October 21, 2024 |
Expenses and Fees
| Expense Ratio (%): | 0.55% (Rating: Avg) |
| Category Average Expense Ratio (%): | 0.54% |
