BlackRock now has $ 8.7 trillion in assets after the boom in iShares ETF

Black rock (BLK), the world’s largest money manager, closed the year with nearly $ 8.7 trillion in total assets – a 17% increase from a year ago.

Approximately $ 2.7 trillion of BlackRock’s assets under management are in the company’s iShares ETFs. That’s 19% more than at the end of 2019. Investors put nearly $ 79 billion in new money into iShares funds in the fourth quarter alone.

BlackRock held up far better than other major financial stocks in 2020 – a year of turmoil and volatility due to the global Covid crisis – 19 and the ensuing recession. The company has benefited from the rapid recovery in the stock market, even as many large banks saw their profits hurt by lower interest rates and weaker loan demand.
Shares of BlackRock are up nearly 50% in the last 12 months, while the Financial Select Sector SPDR fund (XLF), an ETF that owns most of the top US banks, is up just 1%. BlackRock shares fell more than 2% on Thursday despite the strong results.
“The world faced unprecedented challenges in 2020, many of which are still ongoing. BlackRock has remained steadfast in meeting the needs of all of our stakeholders,” said Larry Fink, BlackRock CEO in the earnings release.

Fink added on Thursday during a conference call with investors and analysts that “the hardships people worldwide have experienced in 2020 and the inequality further exasperated by the pandemic have only amplified BlackRock’s awareness of savings to make savings easier and more affordable. to make.”

He stressed that the company would continue to promote sustainable investment trends as a major economic theme and expressed the hope that the eventual economic recovery will lead to a more resilient economy in the future.

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“The pandemic has taken a dramatic toll on our entire lives, disrupting the way we work and our way of life. At the same time, it has led to a profound shift in economies and how societies even function, creating opportunities for our society. reshape. ”he added during the conference call.

Fink said concerns about growing economic inequality, along with low interest rates and higher inflation expectations, should be a major theme for any investor saving for retirement or other long-term goals.

During the call, however, he did not address the changing political or regulatory landscape. No mention was made of the fact that Joe Biden is about to take over as president and that Democrats will control both the House and the Senate.

But Fink was optimistic about the future, arguing that even as long-term bond yields start to rise, “demand for stocks will continue” and higher interest rates “will make the banking system much stronger.” He said the rise in bond yields “is a positive sign for the economy”.

He closed the conference call with a message for public safety: “Everyone please feel safe. Everyone please stay healthy and please get everyone vaccinated. Thank you.”

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