BlackRock ETF Flows Hit New Record as 2Q Earnings Beat
The company's iShares ETF franchise attracted $85 billion in net flows during the second quarter and $192 billion year to date, according to BlackRock's earnings report released Tuesday. ETF assets under management reached $4.7 trillion, representing 38% of BlackRock's total $12.5 trillion in assets.
The ETF business generated $1.9 billion in base fees during the quarter, accounting for 42% of BlackRock's total investment advisory revenue, according to the filing. This revenue stream has become increasingly important as more fund managers increase their active strategy launches.
"iShares ETFs had a record first half in flows, and technology ACV growth reached a fresh high of 16%," said Larry Fink, BlackRock's chairman and CEO, in the earnings statement. "This core strength, alongside client demand for private markets, digital assets, Aperio, and our tech and data-driven systematic strategies, propelled another consecutive quarter of above-target organic base fee growth."
The company's total revenue increased 13% year over year to $5.4 billion, according to the earnings report. BlackRock's assets under management rose 18% from the prior year to $12.5 trillion, though quarterly net flows of $68 billion were reduced by a single institutional client's $52 billion redemption.
ETF net flows were driven by strong demand across multiple asset classes, according to BlackRock. Fixed-income ETFs attracted $43 billion in flows, while equity ETFs drew $22 billion. Digital asset ETFs added $14 billion in new assets during the quarter.
ETF revenue growth has outpaced BlackRock's alternatives business in recent quarters, according to the company's financial statements. ETF base fees increased to $1.9 billion from $1.6 billion in the prior year, while alternatives revenue reached $656 million.
Catherine Seifert, vice president at CFRA Research, noted in a research report that BlackRock's "market-leading ETF franchise" remains one of three key growth pillars supporting the company's premium valuation. She expects continued ETF leadership amid challenging market conditions.
"We expect BLK to pursue additional bolt-on acquisitions to achieve this strategic goal and view its ability to produce above-peer organic growth enhanced by tactical acquisitions as providing a catalyst for multiple expansion," Seifert wrote, forecasting 12%-17% revenue growth for 2025.
The ETF business has proven resilient during market volatility, with BlackRock's index funds maintaining 95% of assets within applicable tolerance ranges over one-year periods, according to the company.Permalink | © Copyright 2025 etf.com. All rights reserved
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
16 minutes ago
- Yahoo
MEI Pharma (MEIP) Becomes the First and Only Publicly Traded LTC Holder on a National Exchange
MEI Pharma, Inc. (NASDAQ:MEIP) is one of the . On July 18, MEI Pharma, Inc. (NASDAQ:MEIP) announced securities purchase agreements for a private investment in public equity (PIPE) for the sale and purchase of 29,239,767 shares of common stock at a price of $3.42 per share. A modern pharmaceutical laboratory with research scientists working at their desks. The expected aggregate gross proceeds for the transaction come up to approximately $100 million before the exclusion of placement agent fees and other estimated offering expenses. MEI Pharma, Inc. (NASDAQ:MEIP) has plans to use all of the net proceeds for the launch of its treasury strategy focused on Litecoin. The transaction is thus a notable milestone for the company's long-term strategic plan, establishing MEI Pharma, Inc. (NASDAQ:MEIP) as the first and only publicly traded company to adopt Litecoin as a treasury reserve asset. Often referred to as 'silver to Bitcoin's gold,' Litecoin is a peer-to-peer cryptocurrency that Charlie Lee created in October 2011. The integration of Litecoin into its treasury operations has allowed MEI Pharma, Inc. (NASDAQ:MEIP) access to a decentralized monetary asset that complements its cash management framework. MEI Pharma, Inc. (NASDAQ:MEIP) is a pharmaceutical company that develops pharmaceutical compounds. Its programs include Voruciclib and ME-344. While we acknowledge the potential of MEIP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 minutes ago
- Yahoo
Earnings Preview: What to Expect From Ingersoll Rand's Report
Ingersoll Rand Inc. (IR), valued at a market cap of $34.5 billion, is a globally diversified provider of mission-critical flow creation products and industrial solutions. Headquartered in Davidson, North Carolina, the company operates through two key segments: Industrial Technologies and Services, and Precision and Science Technologies. IR is expected to release its Q2 2025 earnings after the market closes on Thursday, July 31. Ahead of this event, analysts project the company to report an adjusted EPS of $0.76, a decline of 5% from $0.80 per share reported in the year-ago quarter. The company has met or surpassed Wall Street's bottom-line estimates in three of the past four quarters, while missing the estimate on one occasion. More News from Barchart Warren Buffett's Berkshire Hathaway Earns $93,150 Every Hour from Coca-Cola Dividends Alone These Are the Highest Yielding Dividend Aristocrats Today (Entire List) OpenAI CEO Sam Altman Calls DeepSeek's Bluff: 'I Don't Think They Figured Out Something Way More Efficient' Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. For fiscal 2025, analysts expect Ingersoll Rand to report an adjusted EPS of $3.22, marking an increase of 1.3% from $3.18 in fiscal 2024. In addition, its adjusted EPS is expected to grow 9.3% year-over-year to $3.52 in fiscal 2026. IR stock has crumbled 12.6% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 13.6% gain and the Industrial Select Sector SPDR Fund's (XLI) 20.6% return during the same period. On May 1, Ingersoll Rand released its Q1 earnings, and its shares rose marginally. Its revenue rose 2.8% year-over-year to $1.7 billion, aided by recent acquisitions, but came in just below estimates. Moreover, adjusted net income declined 8.3% from the prior year to $293.2 million, also missing projections. Analysts' consensus view on IR is moderately optimistic, with a "Moderate Buy" rating overall. Among 14 analysts covering the stock, seven suggest a "Strong Buy" and seven recommend a "Hold" rating. Its mean price target of $93 represents a 8.7% premium to current price levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16 minutes ago
- Yahoo
Morgan Stanley Reiterates a Buy Rating on AbbVie (ABBV) With a $250 PT
AbbVie Inc. (NYSE:ABBV) is one of the best long term low volatility stocks to buy now. On July 10, Morgan Stanley analyst Terrence Flynn reiterated a Buy rating on AbbVie Inc. (NYSE:ABBV) and set a price target of $250.00. A pharmacist handing out a pharmaceutical drug to a patient in a drug store or chemist. AbbVie Inc. (NYSE:ABBV) reported positive fiscal Q1 2025 results that support the optimistic outlook, with adjusted diluted EPS reaching $2.46, experiencing a 6.5% growth. The company also reported $13.343 billion in net revenue for the first quarter of 2025, reflecting an 8.4% growth on a reported basis or 9.8% on an operational basis. AbbVie Inc. (NYSE:ABBV) is a research-based pharmaceutical company that develops and sells products to treat chronic diseases in oncology, gastroenterology, rheumatology, dermatology, virology, and various other serious health conditions. While we acknowledge the potential of ABBV as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
