BlackRock is soaring as investors plow money into ETFs
Posted October 13, 2020 8:19 a.m. EDT
CNN — BlackRock, the owner of the wildly popular iShares family of exchange-traded funds and the world's largest asset manager, has gotten even bigger during the Covid-19 pandemic. BlackRock said Tuesday that it now has $7.8 trillion in assets under management, a 12% increase from last year.
The continued allure of passively managed index funds is a big reason why BlackRock is thriving during these volatile times for the market. BlackRock said that iShares raked in $2.3 trillion in assets during the third quarter -- and nearly 70% of that total was for stock funds.
BlackRock disclosed the numbers in its latest earnings report Tuesday. Revenue and profit easily surpassed Wall Street's forecasts.
"As investors around the world navigate current uncertainty, including the pandemic and uneven economic recovery, BlackRock is serving clients' needs with global insights, strategic advice and whole-portfolio solutions," said BlackRock CEO Larry Fink in a press release.
Shares of BlackRock rose more than 4% on the news. BlackRock's stock has now surged nearly 25% in 2020 thanks to its strong results. The asset management company is thriving at a time when most other Wall Street investment banks are struggling.
JPMorgan Chase, despite posting solid results of it own Tuesday morning, is still down more than 25% this year. Shares of rivals Citigroup, Bank of America and Goldman Sachs are all in the red for 2020 as well.