BlackRock now has $ 8.7 trillion in assets following iShares’ ETF boom

BlackRock (BLK), the world’s largest money management firm, closed the year with nearly $ 8.7 trillion in total assets – up 17% from a year ago.

About $ 2.7 billion of BlackRock’s assets under management are in the company’s iShares ETFs. This is 19% higher than at the end of 2019. Investors plowed nearly $ 79 billion in new money into iShares funds in the fourth quarter alone.

BlackRock rose much better in 2020 than other major financial stocks – a year of turmoil and volatility due to the global Covid – 19 crisis and consequent recession. The company has benefited from the rapid recovery of the stock market, even though many large banks have seen their profits affected by lower interest rates and weaker demand for loans.
Shares in BlackRock have risen by almost 50% over the past twelve months while the SPDR Fund for Financial Electoral Sector (XLF), an ETF that owns most of America’s top banks, rises by just 1%. BlackRock shares fell more than 2% on Thursday despite strong results.
“The world has faced unprecedented challenges in 2020, many of which continue today. Through it all, BlackRock has remained steadfast in the needs of all our stakeholders,” BlackRock CEO Larry Fink said in the earnings press release. .

Speaking at a conference call with investors and analysts on Thursday, Fink added that ‘the hardships that people worldwide are experiencing in 2020 and the inequality further fueled by the pandemic only intensified BlackRock’s sense of savings, to make savings easier and more affordable. . ‘

He stressed that the company would promote sustainable investment trends as an important economic theme, and expressed the hope that the eventual economic recovery would once again lead to a more resilient economy.

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“The pandemic has dramatically claimed our lives, disrupting the way we work, the way we live. At the same time, it has led to a profound shift in economies and how societies even function, which has created opportunities for our society. redesigned., “he added during the conference call.

Fink said concerns about growing economic inequality, coupled with low interest rates and rising inflation expectations, should be a big picture for investors saving for retirement or other long-term goals.

However, he did not address the changing political or regulatory landscape during the call. No mention was made of the fact that Joe Biden is about to take over as president and that the Democrats will control both the House and the Senate.

But Fink sounds at odds with the future, arguing that even if long-term bond yields rise, ‘demand for equities will continue’ and that higher yields ‘will push the banking system much harder’. He said the increase in bond yields was a “positive sign for the economy.”

He concluded the conference with a public safety message: “Everyone please feel safe. Everyone please stay healthy, and everyone please get a vaccination. Thank you.”

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