In the third quarter of 2024, BlackRock achieved unprecedented assets under management totaling $11.5 trillion. The firm’s robust results were attributed to its strategic expansion into private markets along with a surge in demand for its exchange-traded funds (ETFs). For the quarter, BlackRock experienced total net inflows amounting to $221 billion, with ETF inflows accounting for $97 billion.
The company reported a net income of $1.63 billion for the third quarter, marginally up from $1.6 billion in the previous year. Ryan Jackson, a senior manager research analyst at Morningstar, stated, “The iShares bond ETFs have consistently been in high demand for some time.”
BlackRock’s asset expansion in Q3
At the beginning of 2024, their taxable-bond offerings comprised approximately 23% of total assets but represented nearly half of iShares’ net flows this year.
The ETF sector recorded an all-time high of $280 billion in inflows for the third quarter, with expectations to exceed $1 trillion in annual inflows, surpassing previous yearly records. BlackRock’s iShares ETFs expanded to $4.2 trillion, which makes up 37% of the firm’s total assets under management. Cathy Seifert, an analyst at CFRA, indicated that BlackRock is poised for ongoing growth, especially as funds drift from money market accounts into their ETFs due to decreasing interest rates.
Seifert also pointed out that BlackRock is diversifying into alternative investments, such as private credit, an area that is increasingly popular among asset managers. In the latest quarter, BlackRock’s alternative investment segment brought in $5.5 billion in inflows. Following the announcement of its record-high assets under management, BlackRock’s stock, which has risen over 21% this year, saw an increase of more than 3% during mid-day trades.
