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Wall Street Journal / Biz - Money

BlackRock’s iShares ETFs Have Already Seen A Record Yearly Inflow


Chris Dieterich and

Sarah Krouse

It took just nine months for BlackRock exchange-traded funds to pull in more new money than any year in its history.

The world’s largest money manager’s iShares ETF suite grabbed $52.3 billion in the third quarter, accounting for 54% of BlackRock’s aggregate quarterly inflow, the company reported Wednesday. Some $190.5 billion moved into iShares ETFs during the first three quarters of 2017, more than the $140.5 billion that flowed into iShares ETF in 2016.

Total iShares assets ended the third quarter at $1.64 trillion, representing 27% of BlackRock’s nearly $6 trillion assets under management.

A torrent of new money pouring into ETFs helped BlackRock top Wall Street’s third-quarter earnings estimates, lifting the stock’s price 1.6% to $473 in recent trading, leading all S&P 500 financial stocks. BlackRock’s stock price has risen 34% over the past year.

BlackRock’s third-quarter update is another sign in the rising influence of passive, index-tracking investment products. Index fund giant Vanguard Group has nearly matched in nine months its record inflow from 2016.

Among U.S.-listed ETFs, a popular means to accessing index-based investment strategies, BlackRock and Vanguard dominated the leaderboard in the third quarter. No ETF took in more new month in the third quarter than the iShares Core MSCI EAFE ETF, which grabbed $6.4 billion. The iShares Core S&P 500 ETF took in $6.3 billion.

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