Latest news with #iShares
Yahoo
a day ago
- Business
- Yahoo
BlackRock ETF Flows Hit New Record as 2Q Earnings Beat
BlackRock, Inc. (BLK) reported second-quarter adjusted earnings per share of $12.05 today, beating analyst expectations, as the company's ETF business delivered record first-half flows that helped drive revenue growth across the world's largest asset manager. 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 | © Copyright 2025 All rights reserved
CNBC
a day ago
- Business
- CNBC
BlackRock falls more than 5% on mixed earnings — why we'd look to buy Wednesday
BlackRock shares fell Tuesday after the world's largest asset manager reported mixed second-quarter earnings — presenting a buying opportunity for patient investors. Revenue in the second quarter rose 12.9% year over year to $5.42 billion, but missed the $5.46 billion estimate, according to LSEG. Adjusted earnings per share (EPS) of $12.05 topped expectations of $10.82, LSEG data showed. Assets under management (AUM) totaled $12.53 trillion at the end of the quarter, above the consensus estimate of $12.15 trillion, according to FactSet. BlackRock stock came into the print at all-time highs, so we're not all that surprised that investors are doing some profit taking. However, the company is set up for a strong back half of 2025, making the sell-off a great opportunity for members to step in and do some buying. In an interview with CNBC after the results, CEO Larry Fink said stock sellers are overlooking the strong organic growth in fee revenue generated by rising asset prices. He also emphasized that the second-quarter results do not include the positive impact that recent acquisition HPS will have going forward. BlackRock completed its $17 billion deal on July 1, part of its efforts to build up its share of the fast-growth private credit market. BLK YTD mountain BlackRock year to date return Bottom line Despite the sales miss, there was a lot to like under the hood. Highlights include organic base fee growth of 6%, the fourth consecutive quarter of 5% or greater growth and a better-than-expected adjusted operating margin of 43.3%, despite a slight contraction versus the year ago period. On the post-earnings call, CFO Martin Small said that currency fluctuations and rising asset prices means BlackRock entered the third (current) quarter with an estimated base fee run rate roughly 5% higher than the prior quarter. In addition, total assets under management ended the quarter up 18% year over year to a new all-time high of $12.5 trillion — even as net inflows came up short, thanks partly to one large institutional redemption of $52 billion from low-fee index funds (resulting in $48 billion of net outflows). Notably, iShares ETF inflows in the first half reached a new all-time record for the company. Technology services revenue and subscription revenue increased 26%, with Preqin contributing approximately $60 million to second quarter revenue. BlackRock's $3.2 billion purchase of alternative assets data provider Preqin — the smallest of its three private-market deals announced in 2024 — "could be as impactful as any of them," Fink said. BlackRock is working with regulators to provide more transparency and liquidity in private markets, which basically refers to assets that don't trade on public exchanges, including loans to companies, known as private credit, and investments into infrastructure projects such as data centers and ports. Annual contract value (ACV) increased 32% year over year, including Preqin, and 16% organically. Despite all the positives heading into the second half of the year, shares of BlackRock are down more than 5%. We believe the company's recent acquisitions will supercharge sales and earnings, and allow the company to expand its client base and cross-sell its newer products to existing customers. As management integrates these acquisitions, including its most recent buy of ElmTree Funds, we expect the overall adjusted operating margin to rebound. As a result, we reiterate our 1 rating and are increasing our price target to $1,200 from $1,050. No need to rush in today, but we'd look to potentially buy shares on Wednesday. BlackRock (BLK) Why we own it: BlackRock is a premier asset gatherer perhaps best known for its family of iShares exchange-traded funds. However, the firm is wisely pushing into alternative strategies, such as infrastructure and private credit, with a series of acquisitions to fuel its next leg of growth. Led by venerable CEO Larry Fink, BlackRock has a track record of sustained asset and technology services growth while remaining disciplined on expenses to boost profitability. Initiation date: Oct. 16, 2024 Most recent buy: April 22, 2025 Competitors: State Street , Vanguard, Apollo Global Management and Ares Management Commentary Acquisitions were a major focus on the conference call, and it's clear that bringing HPS Investment Partners and Global Infrastructure Partners together and integrating them into the BlackRock ecosystem is leading to new opportunities for growth. In fact, since the close of the second quarter, BlackRock managed to complete a $25.2 billion raise with its new GIP Fund V, above management's $25 billion target. As CFO Small noted on the call, this represents "the largest private markets fundraise in the history of BlackRock and GIP." Small said the acquisition of HPS marks "a major milestone as we evolve towards our ambitions of 30% revenue contribution from private markets and technology." The GIP acquisition has also opened up infrastructure conversations with hyperscale customers, which we all know are investing massive sums of money to build out data centers and the energy pipelines needed to power them. As management put it on the call, these acquisitions, along with Preqin, put BlackRock "in a position that we could have a broader, deeper conversations with our clients." Not only have they opened up new pathways for growth, they also open the door for more cross-selling opportunities. iShares also saw a benefit from the launch of BlackRock's bitcoin ETF (IBIT). CEO Larry Fink said that nearly a third of the investors came to BlackRock for IBIT have gone on to purchase other iShares products. (Jim Cramer's Charitable Trust is long BLK. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Business Insider
a day ago
- Business
- Business Insider
5 stats that show where BlackRock is — and where the world's largest asset manager is going
There are lots of big numbers that come up on BlackRock earnings calls. It's what happens when you're the largest asset manager in the world. The key thing for investors in the firm and competitors tracking the behemoth from afar is deciphering which of the gaudy current-day figures will keep growing and which of the optimistic projections will actually happen. BlackRock already manages $12.5 trillion in assets across institutions, insurers, pensions, and wealthy people, mostly in public markets. It's spent the last year and a half acquiring businesses that would help it move more of that money into lucrative private markets, where fees are higher and capital is stickier. At its investor day last month, the firm laid out its goal to hit $35 billion in annual revenue in 2030, an increase from $20 billion in 2024. Business Insider highlighted five stats from the firm's Tuesday call with analysts to demonstrate asset manager is currently and where it hopes to be in five years. $152 billion The net inflows into BlackRock products in the first half. The influx of assets was led by a record six months from the firm's iShares ETF line, which brought in a net $192 billion of new money. BlackRock's existing business, particularly its low-fee index investing funds, is the biggest pile of money in the industry and is still growing consistently. Still, the first half of the year was not perfect, as some of the firm's actively traded products experienced a performance dip. 58% The decline in performance fees collected by BlackRock in the first half of 2025 compared to the first half of 2024. Rocky equity and bond markets worldwide, caused primarily by the trade policies proposed by President Donald Trump, have been challenging for investors of all sizes to deal with. At BlackRock, the firm's profit margin dipped to 43.3% this quarter compared to 44.1% in last year's second quarter, and CFO Martin Small attributed 75% of that drop to the decline in performance fees. Active equity funds in particular have had a rough 12-month stretch, the firm's earnings supplement shows: Only 40% of assets are above the index or peer median. The firm also noted that private market funds brought in fewer performance fees than last year, but the firm's ambitions for that space remain as large as ever. $450 million The amount of revenue HPS Investment Partners is expected to add to BlackRock's coffers in the third quarter, according to Small. The deal for the $165 billion private credit shop closed at the start of July, and Small said the firm will issue the equivalent of up to 13.8 million shares of BlackRock common stock to retain the team at the firm. The retention of HPS's team will be critical for BlackRock, which wants to fundraise significantly for its private-credit and infrastructure offerings over the next five years. $400 billion The fundraising goal for private market fundraising through 2030. Small said he expects it to ramp up in 2028 as HPS and Global Infrastructure Partners, the firm's other large private market investor acquisition, become more ingrained in the firm. CEO Larry Fink said that he was in Asia last week, where demand for infrastructure and other private-public partnerships is already "beyond our imagination." Those partnerships — the firm has pulled in Singapore's Temasek in its artificial intelligence infrastructure push — will be needed if the manager hopes to hit its revenue goals. 40% The proportion of the firm's revenue that it wants to derive from its private markets funds and tech services platform, led by Aladdin. The New York-based firm made nearly $10.7 billion in revenue in 2025's first half, driven by its equity ETFs, which hauled in $2.8 billion in revenue alone. Tech services, meanwhile, made roughly a third of that in the same time frame. BlackRock's Aladdin platform already serves more than 200 institutional clients, effectively making the firm an infrastructure provider to many of its clients and some of its competitors. But the firm's fundraising push for its private market offerings also includes the hope that individual retirement accounts in the US will soon be open to such options. Fink and Small both said that litigation reform is needed before that could happen, but are optimistic about what they've heard out of Washington on the subject. "We think we have all the building blocks here," Small said.
Yahoo
2 days ago
- Business
- Yahoo
SPLG Attracts $1.4B in Assets; Dow Drops on Tariff Fears
The SPDR Portfolio S&P 500 ETF (SPLG) pulled in $1.4 billion on Friday, bringing its assets under management to $76.8 billion, according to data provided by FactSet. The inflows came as the Dow Jones Industrial Average fell 279 points and the S&P 500 slid 0.3% after President Donald Trump announced a 35% tariff on Canadian imports. The iShares Bitcoin Trust ETF (IBIT) attracted $448.5 million, while the ProShares UltraPro QQQ (TQQQ) collected $409.4 million. The iShares Broad USD High Yield Corporate Bond ETF (USHY) gained $361.2 million, and the iShares 20+ Year Treasury Bond ETF (TLT) pulled in $330.4 million. The SPDR S&P 500 ETF Trust (SPY) saw outflows of $3.7 billion, while the Invesco QQQ Trust (QQQ) lost $1.5 billion. The SPDR Dow Jones Industrial Average ETF Trust (DIA) experienced outflows of $937.8 million as trade war concerns escalated. U.S. equity ETFs lost $3.3 billion for the day, while U.S. fixed-income ETFs attracted $1.9 billion. Currency ETFs pulled in $1.6 billion amid the tariff uncertainty. Overall, ETFs collected $1.3 billion for the day. Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change SPLG SPDR Portfolio S&P 500 ETF 1,428.38 76,764.49 1.86% IBIT iShares Bitcoin Trust ETF 448.49 80,107.01 0.56% TQQQ ProShares UltraPro QQQ 409.39 27,458.51 1.49% USHY iShares Broad USD High Yield Corporate Bond ETF 361.19 24,300.54 1.49% TLT iShares 20+ Year Treasury Bond ETF 330.41 48,048.50 0.69% FBTC Fidelity Wise Origin Bitcoin Fund 324.34 23,503.50 1.38% IWM iShares Russell 2000 ETF 314.52 67,250.60 0.47% ETHA iShares Ethereum Trust ETF 300.93 5,636.75 5.34% ARKB ARK 21Shares Bitcoin ETF Ben of Int 268.70 5,792.75 4.64% VTI Vanguard Total Stock Market ETF 200.31 507,029.71 0.04% Ticker Name Net Flows ($, mm) AUM ($, mm) AUM % Change SPY SPDR S&P 500 ETF Trust -3,692.83 641,570.68 -0.58% QQQ Invesco QQQ Trust Series I -1,527.69 354,118.77 -0.43% DIA SPDR Dow Jones Industrial Average ETF Trust -937.77 38,624.12 -2.43% VOO Vanguard S&P 500 ETF -375.36 696,880.74 -0.05% IWN iShares Russell 2000 Value ETF -341.54 11,179.08 -3.06% SPAB SPDR Portfolio Aggregate Bond ETF -248.91 8,541.81 -2.91% SOXL Direxion Daily Semiconductor Bull 3x Shares -233.27 14,436.39 -1.62% SLV iShares Silver Trust -155.54 17,465.92 -0.89% RWR SPDR Dow Jones REIT ETF -155.21 1,868.02 -8.31% XLC Communication Services Select Sector SPDR Fund -149.41 23,665.25 -0.63% Net Flows ($, mm) AUM ($, mm) % of AUM Alternatives 29.46 10,207.75 0.29% Asset Allocation 58.20 25,316.98 0.23% Commodities ETFs -157.27 220,532.65 -0.07% Currency 1,569.08 163,372.16 0.96% International Equity 673.70 1,896,618.76 0.04% International Fixed Income 283.75 306,094.66 0.09% Inverse 91.27 14,052.36 0.65% Leveraged 196.78 145,963.85 0.13% US Equity -3,290.12 7,244,533.18 -0.05% US Fixed Income 1,864.14 1,706,403.21 0.11% Total: 1,318.99 11,733,095.56 0.01% Disclaimer: All data as of 6 a.m. Eastern time the date the article is published. Data are believed to be accurate; however, transient market data are often subject to subsequent revision and correction by the | © Copyright 2025 All rights reserved Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Bitcoin, Ether ETFs Soar as Crypto Week Starts With a Bang
Spot Bitcoin and Ethereum exchange-traded funds rose amid strong gains in their underlying cryptocurrencies—with Bitcoin hitting a new all-time high—as 'Crypto Week' kicks off with expectations that legislation being weighed by U.S. lawmakers will push the asset class further into the mainstream. The world's biggest spot Bitcoin ETF, the $80.1 billion iShares Bitcoin Trust (IBIT), and its runner-up, the $22.7 billion Fidelity Wise Origin Bitcoin Fund (FBTC), both jumped about 2.5% before noon on Monday as Bitcoin briefly topped $123,000. The biggest Ethereum ETFs, the $5.6 billion iShares Ethereum Trust (ETHA) and the $3.2 billion Grayscale Ethereum Trust ETF (ETHE), moved 0.6% higher. The underlying Ether token topped $3,000, and the price has now more than doubled over the past three months, according to CoinMarketCap. The House of Representatives has declared Monday the start of Crypto Week, as lawmakers consider a trio rules this week favored by the Trump Administration that would further legitimize cryptocurrencies. One is the GENIUS Act, whichi would regulate dollar-backed 'stablecoins,' many of which use Ethereum. The other, the CLARITY Act, would give the Commodities Futures Trading Commission (CFTC), a central role in regulating digital commodities. The third, the Anti-CBDC Surveillance State Act, permanently blocks the creation of a central bank digital currency (CBDC). The new rules and pro-crypto stance mark a reversal from that of the Biden Administration, during which crypto and crypto exchanges were tarred by fraud accusations and doubts as to their safety by regulators. Top 5 Spot Bitcoin ETFs—Source: FactSet The rules face a variety of final votes, debates and revisions this week, according to an X post from Nate Geraci, president of NovaDius Wealth Management, formerly the ETF Store. The GENIUS Act, if passed by the House, would go to President Donald Trump to be signed into law. Investors are pouring money into digital asset ETFs, pushing their total AUM to a record $211 billion, according to CoinShares. Last week, crypto ETFs pulled in $3.7 billion, their second-best week ever. Bitcoin ETFs pulled in $2.7 billion, while Ethereum ETFs grabbed $990 | © Copyright 2025 All rights reserved Sign in to access your portfolio
