BlackRock Releases Q4 Earnings Report
88% of New Capital Last Year Flowed into ETFs
AI ETFs Stand Out Amid the "Everything Rally"
Larry Fink, Chairman and Chief Executive Officer (CEO) of BlackRock Asset Management. Photo by AFP Yonhap News
Last year, the global popularity of exchange-traded funds (ETFs) soared, pushing the assets under management (AUM) of BlackRock Asset Management, the world's largest asset manager, past 2 quadrillion won.
On January 15 (local time), BlackRock announced in its fourth-quarter earnings report that its total AUM at the end of 2025 reached $14 trillion (approximately 2,050 trillion won), marking a 22% increase compared to the previous year.
Throughout last year, the company saw a net inflow of $698 billion across all sectors, with $527 billion (88.1%) directed into its ETF segment. The scale of ETF assets under management also grew significantly, reaching $5.5 trillion by the end of last year, which accounted for 39% of BlackRock's total assets under management.
BlackRock established itself as the dominant force in ETFs after acquiring the ETF business unit 'iShares' from Barclays in 2009. The company has shown particular strength in artificial intelligence (AI) themed ETFs, attracting over $8 billion through its flagship AI ETF products alone. Furthermore, CNBC reported that in recent years, several AI ETFs managed by BlackRock have surpassed $1 billion in assets.
The fact that last year was an "everything rally," with gold, stocks, and Bitcoin all surging simultaneously, also served as a favorable factor. According to Bloomberg, the MSCI All Country World Index (MSCI ACWI), which reflects both developed and emerging markets worldwide, rose by 21% last year, marking its third consecutive year of gains. Not only did stock prices climb, but gold and silver prices also jumped by more than 70% and 180%, respectively. Bitcoin, the leading cryptocurrency, was trading around $88,000 at the end of the year, but in October last year, it surpassed its all-time high of $120,000, demonstrating explosive popularity.
Matthew Bartolini, Head of SPDR Americas Research at State Street Global Advisors, told Reuters, "If a market correction occurs, the pace of capital inflows may slow somewhat, but this trend itself will not be stopped," adding, "Investors are shifting their funds into a wide range of ETF products, from traditional S&P 500 index ETFs to those covering cryptocurrencies and gold."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
