Record iShares Growth as Investors Embrace ETFs at Fastest Pace Ever

In a breakout year for ETFs and indexing, BlackRock Inc.’s (NYSE: BLK) iShares business expanded at its fastest pace ever, collecting a record $246 billion in new flows, taking the global ETF industry beyond $4.5 trillion in total assets under management (AUM) for the first time. iShares growth was powered by surging interest from investors of all types seeking both quality core foundational funds and more targeted fund exposures offering innovative new ways to access markets.

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(Graphic: Business Wire)

iShares 2017 highlights:

• iShares AUM closed the year at $1.754 trillion, including $1.33 trillion in equities and $427 billion in fixed income and commodities.
• Global investors drove record growth in U.S. iShares, with net inflows of $201 billion. U.S. individual investors and financial advisors drove exceptional growth this year, as the shift to fee-based wealth management encouraged use of low-cost portfolio funds. Institutions in every region of the world accelerated their usage of iShares ETFs across asset classes and in tactical and buy-and-hold portfolios.
• Bought by investors across Europe, Asia, and Latin America, iShares European UCITS saw organic growth of 15% with a record $41 billion of net inflows. European iShares funds crossed $300 billion AUM this year, closing the year at $359 billion.
• iShares fixed income ETFs benefited as more and more investors viewed bond ETFs as integral parts of a modern bond portfolio. Use of bond ETFs as trading instruments expanded as bond markets continued to evolve from exclusively over-the-counter, dealer-intermediated trading to more open, all-to-all networks. Net inflows for iShares’ fixed income products grew at 13% pace, with more than $68 billion in new flows. Bond ETFs are on pace to hit $1.5tn by 2022.
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• Global iShares Core funds crossed $500 billion to $514 billion in assets under management, growing at 58%, adding a record $123 billion in global net inflows as retail and institutional investors sought value and quality for their long-term foundational holdings. In the U.S., iShares Core grew its AUM market share to 41%, totalling $105 billion in flows for the year.
  • iShares Core series has gathered $273 billion since the product series was launched in 2012.
• Institutions continued to expand usage of iShares ETFs as financial instruments, alongside swaps, futures, and single-name securities, and as a reference asset for OTC and listed derivatives.
• iShares continued to be a market leader of factor and smart beta products, as investors globally make factors a more deliberate strategy in portfolios. iShares now has a global line-up of 142 smart beta ETFs with an industry-leading $108 billion in AUM.

Mark Wiedman, Global Head of iShares and Index Investments at BlackRock, said: