BlackRock reported $205 billion in net client inflows for the third quarter, including $134.5 billion into long-term iShares exchange-traded funds, as the asset manager ended September with a record $15.5 trillion under management. Demand held up across several product lines.
The company disclosed the figures on October 14 with its third-quarter results. As the world’s largest asset manager, BlackRock offers a broad read on where investor money is going, though not on how any one ETF has performed.
Flows spanned more than index ETFs
BlackRock said the quarter’s $205 billion in net inflows reflected strength across iShares ETFs, systematic active equities, private markets and cash. The iShares long-term ETF component was $134.5 billion, according to Reuters. BlackRock’s assets under management rose to $15.5 trillion at quarter-end, 15 percent above the year-earlier level.
Inflows into iShares funds add assets and fees for BlackRock. For the people who own those funds, results still depend on each fund’s holdings, costs and the market, and money that arrives in a rally can leave in a downturn.
BlackRock reported third-quarter revenue of $7.75 billion, according to its release filed with the SEC, up 19 percent from a year earlier. Adjusted diluted earnings were $15.93 a share, up 38 percent, while GAAP diluted earnings were $10.57. The company said adjusted results reflected stronger operating income and higher nonoperating income.
What the numbers say about ETF demand
The inflow total spans several businesses, so it is not simply a vote for passive stock funds. BlackRock said flows were broad-based across products and client types. Its release also reported 11 percent annualized organic base-fee growth, a gauge of recurring fees from client assets before market moves.
For anyone choosing an ETF, the fund details matter more than BlackRock’s headline total. A broad U.S. stock fund, a bond fund and a thematic fund can all draw money for different reasons and carry different risks. Objective, holdings, expense ratio, tracking difference and liquidity are the things to compare.
Assets under management also move with markets. Total assets can climb in a rally even when new money is modest, and rising prices can mask outflows, which is why net flows and assets under management tell different stories.
What investors should watch next
Investors will be watching whether iShares demand persists in the fourth quarter and how much of the asset growth translates into recurring fees. Changes in cash, fixed-income and active-product demand could also shift the revenue mix. A single quarter will not show whether these inflows last.
Readers comparing different fund types can browse our ETF coverage for related reporting. The flow figures are reported by the company and are not a recommendation of BlackRock or any fund.