BlackRock Science and Technology Trust II (BSTZ)

BlackRock Science and Technology Trust II (BSTZ) Financial Services Profile

BlackRock Science and Technology Trust II (BSTZ) is a US-based closed-end equity fund established in 2019, managed by BlackRock Advisors, LLC. It strategically invests globally in publicly traded science and technology growth stocks across all market capitalizations, aiming for both income and capital appreciation within the dynamic tech sector.

What Is the Investment Thesis for BSTZ?

BlackRock Science and Technology Trust II (BSTZ) presents an investment thesis centered on its strategic exposure to the global science and technology sectors, managed by BlackRock Advisors, LLC. A key value driver is its access to BlackRock's extensive research and management expertise, which provides a significant advantage in identifying promising growth opportunities within a complex and rapidly evolving market. The fund's mandate to invest in growth stocks across all market capitalizations globally allows for broad diversification and the potential to capture high-growth segments. With a reported dividend yield of 8.71%, BSTZ also offers an attractive income component, appealing to investors seeking both capital appreciation and current income from a growth-oriented portfolio. Growth catalysts for BSTZ include ongoing innovation in technology sub-sectors such as artificial intelligence, cloud infrastructure, and biotechnology, which are expected to drive robust corporate earnings and stock performance. The trust's global investment scope enables it to capitalize on technological advancements originating from various regions, not just domestic markets. However, potential risks include the inherent volatility of the technology sector, which can experience significant fluctuations. As a closed-end fund, BSTZ's market price can trade at a discount or premium to its Net Asset Value (NAV), introducing a unique risk factor independent of the underlying portfolio's performance. Investors must monitor this dynamic alongside the fund's 1.48 Beta, indicating higher volatility relative to the broader market.

Based on FMP financials and quantitative analysis

BSTZ Key Highlights

• Market Capitalization of $2.04B, reflecting its significant presence within the closed-end fund market.
• A P/E ratio of 6.4, indicating the valuation of its underlying holdings relative to their earnings.
• Profit Margin of 111.5%, demonstrating strong profitability in its operational model.
• Gross Margin of 93.5%, highlighting efficient management of its investment portfolio's direct costs.
• An attractive Dividend Yield of 8.71%, providing substantial current income to shareholders.

Who Are BSTZ's Competitors?

BSTZ is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are BSTZ's Key Strengths?

• Leverages BlackRock's extensive global research and asset management expertise.
• Provides diversified exposure to high-growth science and technology sectors globally.
• Offers a dual objective of current income (8.71% dividend yield) and capital appreciation.
• Focuses on growth stocks across all market capitalizations, enabling broad opportunity capture.

What Are BSTZ's Weaknesses?

• As a closed-end fund, its market price can trade at a discount or premium to its Net Asset Value (NAV).
• High Beta (1.48) indicates higher volatility compared to the broader market.
• Dependence on the performance and strategic decisions of BlackRock Advisors, LLC.
• Concentrated exposure to the inherently volatile science and technology sectors.

What Could Drive BSTZ Stock Higher?

• **Ongoing:** Continued robust innovation and adoption within key technology sub-sectors, such as artificial intelligence, cloud infrastructure, and biotechnology, driving potential capital appreciation for the trust's underlying holdings.
• **Ongoing:** BlackRock's active management and extensive global research capabilities identifying and capitalizing on emerging growth opportunities and undervalued assets within the dynamic science and technology landscape.
• **Upcoming:** Potential for increased investor interest and capital inflows into thematic funds focused on technology, particularly if market conditions continue to favor growth-oriented sectors and specialized investment vehicles.
• **Ongoing:** Maintenance of an attractive dividend yield of 8.71%, which can draw income-focused investors seeking exposure to the growth potential of the technology sector while receiving regular distributions.

What Are the Key Risks for BSTZ?

• **Ongoing:** The inherent volatility of the science and technology sectors, which can experience rapid and significant price fluctuations due to innovation cycles, competitive pressures, and evolving market sentiment, impacting the trust's Net Asset Value.
• **Ongoing:** As a closed-end fund, BSTZ's market price can trade at a substantial discount or premium to its Net Asset Value (NAV), introducing a unique risk factor where investor returns may not directly reflect the performance of the underlying portfolio.
• **Potential:** Sensitivity to interest rate changes, as higher interest rates can negatively impact the valuation of growth stocks by increasing the cost of capital and reducing the present value of future earnings, potentially affecting BSTZ's portfolio performance.
• **Ongoing:** Dependence on the expertise and performance of BlackRock Advisors, LLC; any underperformance in fund management or strategic missteps could directly affect the trust's investment returns and shareholder value.

What Are the Growth Opportunities for BSTZ?

• **Continued Tech Sector Innovation:** The relentless pace of innovation in science and technology presents a significant growth driver for BSTZ. Emerging technologies such as artificial intelligence, quantum computing, advanced biotechnology, and sustainable energy solutions are creating entirely new markets and disrupting existing ones. Companies at the forefront of these developments are poised for substantial growth, directly benefiting BSTZ's portfolio. For instance, the global AI market is projected to reach over $1.8 trillion by 2030, indicating vast opportunities for capital appreciation from underlying investments in this space. BSTZ's focus on growth stocks allows it to actively seek out and invest in these transformative companies, aiming to capture long-term value creation.
• **Global Market Expansion:** BSTZ's mandate to invest in publicly traded companies globally provides a crucial advantage by allowing it to tap into high-growth technology markets beyond the United States. While the U.S. remains a tech powerhouse, significant innovation and market expansion are occurring in Asia, Europe, and other regions. This global reach diversifies the fund's exposure and reduces reliance on any single geographic market. For example, the digital transformation initiatives in emerging economies are creating new demand for technology services and products, offering a broader universe of investment opportunities for BSTZ's managers to explore and capitalize on.
• **Increasing Demand for Thematic Funds:** Investor interest in thematic investment vehicles, particularly those focused on technology, has been steadily growing. As retail and institutional investors seek more targeted exposure to specific megatrends, funds like BSTZ that offer a curated portfolio of science and technology companies become increasingly attractive. This demand is driven by a desire to participate directly in the growth stories of innovative sectors without the complexity of individual stock selection. The ease of access and professional management offered by BSTZ caters directly to this expanding market segment, potentially increasing fund inflows and market liquidity over the coming years.
• **Leveraging BlackRock's Research Capabilities:** As a fund managed by BlackRock Advisors, LLC, BSTZ benefits immensely from BlackRock's extensive global research infrastructure and deep market insights. This institutional advantage includes access to a vast network of analysts, proprietary data, and advanced analytical tools. This allows the fund managers to conduct thorough due diligence, identify undervalued or high-potential growth companies, and navigate complex market conditions more effectively than individual investors. The ability to leverage such a robust research platform enhances the fund's capacity to make informed investment decisions and potentially generate alpha within the highly competitive tech sector.
• **Income Generation in a Growth Sector:** BSTZ's dual objective of current income and capital appreciation, evidenced by its 8.71% dividend yield, positions it uniquely within the growth-oriented technology sector. While technology stocks are often associated primarily with capital appreciation, BSTZ aims to provide a consistent income stream, making it appealing to a broader range of investors, including those seeking yield in addition to growth. This strategy allows investors to participate in the dynamic tech market while potentially mitigating some volatility through regular distributions, offering a more balanced risk-reward profile compared to pure growth funds.

What Opportunities Does BSTZ Have?

• Capitalize on ongoing innovation in AI, cloud computing, biotech, and other emerging technologies.
• Expand investment opportunities by tapping into global technology markets beyond the U.S.
• Meet increasing investor demand for thematic funds focused on long-term growth trends.
• Potentially attract income-focused investors due to its significant dividend yield within a growth sector.

What Threats Does BSTZ Face?

• Economic downturns or market corrections could significantly impact technology stock valuations.
• Intense competition from other actively managed funds, ETFs, and passive investment vehicles.
• Regulatory changes affecting the asset management industry or the technology sector.
• Rapid technological obsolescence impacting specific portfolio holdings.

What Are BSTZ's Competitive Advantages?

• **BlackRock Brand and Expertise:** Leveraging the global reputation, extensive resources, and deep financial market expertise of BlackRock, Inc., a leading asset manager.
• **Specialized Global Mandate:** A focused investment mandate on global science and technology growth stocks, allowing for specialized knowledge and targeted opportunity identification.
• **Active Management & Research:** Access to BlackRock's robust research capabilities and active management approach to identify and capitalize on emerging trends and promising companies.
• **Diversified Portfolio Construction:** Ability to build a diversified portfolio across various tech sub-sectors and market capitalizations, potentially mitigating single-stock risk.

What Does BSTZ Do?

The BlackRock Science and Technology Term Trust (BSTZ) is a closed-end equity mutual fund established in June 2019 by BlackRock, Inc., a globally recognized leader in asset management. Managed by BlackRock Advisors, LLC, the trust operates with a clear mandate to invest in publicly traded companies worldwide that are primarily engaged in the science and technology sectors. This strategic focus allows BSTZ to tap into the innovation and growth potential inherent in these dynamic industries. The fund's investment philosophy emphasizes growth stocks, targeting firms across the entire spectrum of market capitalizations, from emerging innovators to established industry giants. By adopting this broad approach, BSTZ aims to capture opportunities arising from technological advancements and scientific breakthroughs across various sub-sectors, including but not limited to artificial intelligence, cloud computing, biotechnology, and software development. As a closed-end fund, BSTZ issues a fixed number of shares through an initial public offering, which then trade on an exchange like regular stocks. This structure differentiates it from open-end mutual funds, as its market price can fluctuate based on supply and demand, potentially trading at a premium or discount to its net asset value (NAV). The trust's primary objectives are to generate both current income and capital appreciation for its shareholders. This dual objective is pursued through a carefully constructed portfolio designed to benefit from the long-term growth trends within the global technology landscape, while also providing a consistent income stream. Headquartered in New York City, US, BSTZ leverages BlackRock's extensive research capabilities, global presence, and deep expertise in financial markets to identify and manage its investments, positioning itself as a specialized vehicle for investors seeking exposure to the high-growth potential of the science and technology sectors.

What Products and Services Does BSTZ Offer?

• Invests in publicly traded companies globally, with a specific focus on the science and technology sectors.
• Emphasizes growth stocks from firms across all market capitalizations, from small-cap innovators to large-cap leaders.
• Aims to generate both current income and capital appreciation for its shareholders.
• Managed by BlackRock Advisors, LLC, leveraging BlackRock, Inc.'s extensive expertise.
• Operates as a closed-end equity mutual fund, meaning it has a fixed number of shares trading on an exchange.
• Constructs a diversified portfolio across various technology sub-sectors, including AI, cloud computing, and biotechnology.
• Provides investors with a professionally managed vehicle to gain exposure to global technological advancements.

How Does BSTZ Make Money?

• Generates revenue primarily through capital appreciation of its underlying equity investments in science and technology companies.
• Distributes current income to shareholders, derived from dividends and other income generated by the portfolio holdings.
• Charges management fees for the professional oversight and active management of the fund's portfolio.
• Seeks to enhance returns through strategic asset allocation and stock selection within the global tech landscape.

What Industry Does BSTZ Operate In?

BlackRock Science and Technology Trust II (BSTZ) operates within the highly competitive and dynamic asset management industry, specifically targeting the specialized segment of closed-end funds focused on science and technology. This industry is characterized by a continuous drive for innovation, both in investment products and the underlying assets. Market trends indicate a sustained investor appetite for thematic funds that offer targeted exposure to high-growth sectors like technology, driven by advancements in areas such as artificial intelligence, cloud computing, and renewable energy. BSTZ positions itself as a vehicle for investors seeking professionally managed access to these global growth opportunities. The competitive landscape for BSTZ includes a wide array of investment products, such as other closed-end funds, actively managed mutual funds, and passively managed exchange-traded funds (ETFs) that also focus on technology. Direct stock investments by individual and institutional investors also form part of the competitive environment. BSTZ differentiates itself through BlackRock's brand reputation, its extensive research capabilities, and its dual objective of current income and capital appreciation. The closed-end structure, while offering potential for unique trading characteristics, also means it competes for investor capital based on factors like its discount/premium to NAV, distribution policy, and overall performance relative to its peers and benchmark indices.

Who Are BSTZ's Key Customers?

• Institutional investors, including pension funds, endowments, and foundations, seeking specialized exposure to the technology sector.
• Retail investors looking for a professionally managed, diversified portfolio of global science and technology growth stocks.
• Individuals and entities aiming for a combination of current income and long-term capital appreciation from their investments.
• Investors who value the expertise and brand reputation of BlackRock in managing their assets within a specific thematic focus.

Net buyingInsider Activity

Over the past six months, BlackRock Science and Technology Trust II insiders filed 12 SEC Form 4 transactions — 3 sales and 9 purchases. On net that is roughly 48K shares acquired (about $592K) — insiders putting money in tends to read as conviction.

BSTZ Valuation & Market Position

With a $2.04B market cap, BlackRock Science and Technology Trust II sits in the mid-cap segment of the market. Relative to its peer group, BSTZ's quantitative score of 46/100 is below the peer average of 70/100.

ROE 17%Key Financial Metrics

Return on equity for BlackRock Science and Technology Trust II stands at 17.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 16.8%, showing how much profit it generates from its asset base. BSTZ trades at a trailing price-to-earnings ratio of 6.37, below the Financial Services sector average of ~18x. Its free cash flow yield is -2.5%, a gauge of the cash the business throws off relative to its market value. Its earnings yield is 14.2%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 6/9Financial Health

BlackRock Science and Technology Trust II's Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 35.60 places it in the safe zone, indicating low near-term bankruptcy risk.

Quarterly Financial Performance: BlackRock Science and Technology Trust II

Revenue for BlackRock Science and Technology Trust II came in at $140.6M during Q4 2025, a 12.1% improvement versus the preceding quarter. The company recorded net income of $286.5M, with diluted EPS of $4.17. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Financial Services company.

BSTZ Financials

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BSTZ Analyst Consensus

BSTZ MoonshotScore

Latest BlackRock Science and Technology Trust II Analysis

What Investors Ask About BlackRock Science and Technology Trust II (BSTZ) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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