“I think there is a failure of people recognizing the two other costs,” he said during Wednesday’s conference call.
In BlackRock’s third-quarter earnings report, it said investors added $25.2 billion to its iShares ETFs, the best quarter since 2009.
Fink also hinted that it is seeing investors move into its iShares funds that track MSCI indices after Vanguard decided to drop the benchmark provider from its ETFs.
“We are seeing flows into our existing products, because of the changes of index providers with our competitor,” Fink said.
“The one thing that people are failing to look at … is institutions by and large want to use the MSCI index,” he added.
Vanguard in a Reuters report denied that the index change was having a negative effect on its ETF flows.
Story updated to correct quote from BlackRock CEO Larry Fink.