ETF industry grows at record pace
BlackRock, Inc. (NYSE: BLK) announced today that its iShares business led the global industry by winning $130bn in new flows in 2015, or a 13% organic growth rate. BlackRock set new growth records in the U.S. ($97 billion vs. $82 billion in 2014) and Europe ($34 billion vs. $20 billion in 2014), and won 42% of flows in both markets. The overall industry expanded at a record-breaking $347bn in 2015.
Mark Wiedman, Global Head of iShares at BlackRock, commented:
“Despite lacklustre equity markets in 2015, the ETF industry set a new growth record of $347bn. Institutional and retail investors are using ETFs more and more, whether as a tool to express a view on almost any financial market or for long-term core investments.”
More investors use bond ETFs to access fixed income markets
Wiedman continued, “Bond ETFs had an exceptionally strong 2015, growing at 22% organic growth rate. Bond ETFs enable retail and institutional investors to access the bond markets at known, transparent prices and with impressive liquidity. iShares won $50bn globally, 54% of all new flows into bond ETFs. During quiet times and volatile times in 2015, iShares bond ETFs performed as clients have come to expect.”
Investors accelerate use of ETFs as substitutes for futures and swaps
“Institutional investors accelerated their use of ETFs as substitutes for futures and swaps in 2015. As banks’ balance sheet costs have ratcheted up, so too has the cost of using futures and swaps. ETFs are now often a more efficient substitute for major global equity indices and for bond indices like credit derivatives. For instance, S&P 500 futures averaged 56 bps over the last year, whereas the same exposure through one of our ETFs only cost 7 bps.”
Susan Chan, Head of Asia Pacific iShares at BlackRock, added:
“Across the Asia Pacific region, a broad range of institutions increased their usage of ETFs – insurers, sovereign wealth funds, asset and wealth managers. Retail demand deepened in our fast-growing Australian business.”
“Asia Pacific investors continued to turn to our two global product lines for liquidity and access to global markets. Asia Pacific investors purchased $12 billion in U.S. and European-domiciled iShares in 2015.”
Jon Howie, Head of iShares Australia commented:
“In Australia, the adoption of ETFs by self-managed super funds and individual investors continued to grow in 2015, reflecting their efficiency as a way to build diversified investment portfolios. This has boosted the liquidity of ETFs on the ASX, which in turn, is contributing to greater institutional usage of ETFs in Australia.”
iShares global AUM exceeded US$1.1 trillion as of December 31, 2015.
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BlackRock is a global leader in investment management, risk management and advisory services for institutional and retail clients. At September 30, 2015, BlackRock’s AUM was $4.506 trillion. BlackRock helps clients around the world meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. As of September 30, 2015, the firm had approximately 12,900 employees in more than 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company’s website at www.blackrock.com
iShares is a global leader in exchange-traded funds (ETFs), with more than a decade of expertise and commitment to individual and institutional investors of all sizes. With over 700 funds globally across multiple asset classes and strategies and more than $1 trillion in assets under management as of September 30, 2015, iShares helps clients around the world build the core of their portfolios, meet specific investment goals and implement market views. iShares funds are powered by the expert portfolio and risk management of BlackRock, trusted to manage more money than any other investment firm.
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Deb Johnson: (+61) 9657 3149
1. All data as of 12/31/15. Source: BlackRock.
2. Sources: BlackRock, Goldman Sachs, Bloomberg, as of 11/20/2015.
3. Based on $4.506 trillion in AUM as of 9/30/15.