ETFs dominated BlackRock’s net sales for 2017, its full-year results reveal.
iShares ETFs generated $245bn (£179bn) net sales over the period, contributing sizeably to total net inflows of $367bn. Blackrock topped the market in the US and Europe when it came to ETF inflows for equity and fixed income products.
For Q4, total net inflows at the asset manager were $103bn taking total assets under management at 31 December 2017 to $6.3trn, a 22 per cent increase on the $5.1trn assets under management at the end of 2016.
Chief executive Larry Fink says an increasingly diverse set of institutional and retail clients are using ETFs for asset allocation and even alpha generation.
Fink says investors are using both equity and fixed income ETFs in their portfolios for core and precision exposures and as financial instruments.
Fink says scaled investment strategies and “industry leading” risk management and portfolio construction technology are driving deeper client partnerships.
The results also highlighted that the industry giant has obtained a private fund management registration to manufacture and distribute onshore investment products in China.