The firm is seeing increased use of ETFs among clients to manage risk in volatile markets; access investment classes more conveniently and affordably; and better align their values with their portfolio objectives.
BlackRock's exchange-traded fund (EFT) business received $185 billion in new assets in 2019, bringing its total ETF assets under management to $2.2 trillion – a 33-percent market share, the asset manager announced in a statement on Wednesday.
The firm noted «strong, steady flows» across its Income, Factor and Sustainable ETF product lines. Fixed Income ETF inflows reached $112 billion, with BlackRock now accounting for 47 percent of global market share.
It attributed record ETF adoption in Europe – where the ETF industry crossed the $1 trillion mark – to two accelerating trends: the growth of sustainable ETFs and the adoption of fixed income ETFs.
Growth in APAC
In Asia Pacific, client ETF holdings crossed $135 billion, BlackRock said, noting strong demand in the region for its fixed income products, led by institutional investors including insurers, and a doubling of AUM in Australian fixed income ETF products in the past year.
«Asia is still at a nascent stage in terms of ETF development and adoption, and we will continue to educate clients about the benefits of building their portfolios with transparent and liquid market access vehicles such as ETFs,» said Susan Chan, head of Asia Pacific iShares at BlackRock.
