BlackRock’s assets under management reached a record $11.5 trillion in the third quarter of 2024. The firm’s strong performance was driven by its push into private markets and high demand for its exchange-traded funds (ETFs). BlackRock reported total net inflows of $221 billion for the quarter, with ETF inflows contributing $97 billion.
The company’s third-quarter net income was $1.63 billion, slightly higher than the $1.6 billion reported a year ago. Ryan Jackson, a senior manager research analyst at Morningstar, said, “The iShares’ bond ETFs have been in high demand for quite some time.
BlackRock’s asset growth in Q3
Their taxable-bond products represented about 23% of assets at the start of 2024 but claimed nearly half of iShares net flows so far this year.”
The ETF industry generated a quarterly record of $280 billion in inflows for the third quarter and is expected to surpass $1 trillion in yearly inflows, breaking its all-time single-year high. BlackRock’s iShares ETFs grew to $4.2 trillion, accounting for 37% of the firm’s total assets under management. Cathy Seifert, an analyst at CFRA, believes that BlackRock is likely to continue expanding, particularly as money flows out of money market funds and into their ETFs as interest rates fall.
Seifert also noted that BlackRock is diversifying into alternative investments, including private credit, which is a growing category among asset managers. During the recent quarter, BlackRock’s alternative investments attracted $5.5 billion in inflows. BlackRock’s stock, which has gained more than 21% this year, rose over 3% in mid-day trading following the announcement of the company’s record-breaking assets under management.
