Exchange traded fund providers are attracting huge inflows, propelled by the increasing popularity of low-cost, index-based investments. ETF investors can also capitalize on the growth in the space through the first ETF that focuses on companies and fund providers directly participating in the industry.
BlackRock (NYSE: BLK) attracted another $103.6 billion in the second quarter, adding to the largest trend in asset management as investors keep funneling billions into lower cost funds, often at the expense of traditional actively managed open-end funds, reports Sarah Krouse for the Wall Street Journal.
The new inflows was a quarterly record for BlackRock, with $73.8 billion flowing into its iShares ETF unit. BlackRock has seen its assets surge to $5.69 trillion, up 16% from the same time last year on the rising interest for index-based ETFs for a number of ways to craft a cheap and diversified investment portfolio.
“We are seeing more and more active investors using ETFs for active management,” Chief Executive Laurence Fink told the WSJ.
Fink also attributed the changing regulations governing retail investing and advice globally as major factors that have helped the money manager attract net new money.