Also, regulators and investors are beginning to differentiate more between ETFs and exchange traded notes (ETNs), he said. ETNs are debt instruments issued by financial institutions that introduce credit risks not found in ETFs.
In 2009, BlackRock agreed to buy the iShares ETF unit from British bank Barclays, which kept the iPath ETN business.
Fink said the overall ETF business is growing at a faster rate in 2011, while mutual fund inflows are stalling.
“Much of this in my opinion is related to the great global uncertainty. Clients are looking for more liquidity as they tactically allocate. And ETFs are a great vehicle for liquid tactical allocation,” the BlackRock CEO said.