“The ability to exit quickly, the ability to exit efficiently and in bulk is part and parcel of our value proposition to an important client segment, trading oriented investors,” Fink remarked. “They use iShares when they want to take on fresh risk as they did earlier in the year and the fourth quarter of 2012 and when they want to exit following the fed comments on tapering. The consequence is that the quarterly flows and our market share will be volatile.”
For example, since the end of the second quarter, iShares ETFs have seen inflows of more than $6 billion, taking year-to-date flows to over $30 billion. [ETFs Shed $17 Billion in June, Reversing 2013 Inflow Trend]
Despite the June outflows, Fink said iShares is running at the same rate of growth as 2012.
“So, overall our products performed in a challenging period but we welcome continued dialogue around the mechanics of ETF,” the BlackRock CEO said. “We are constantly working with market makers and exchanges to make sure that they are working appropriately. As the market leader in the industry, we believe we have a responsibility to lead the charge on market practices and investor education. Not just with respect to iShares but in the ETF market globally at large.” [ETFs Face Scrutiny Amid Market Turbulence]
He said BlackRock “will both drive the growth and benefit from the growth of the market.”