BlackRock says its iShares business led the global industry by capturing US$102.8 billion in new flows in 2014.
That accounted for 31% of the record-breaking US$330.7 billion global exchange-traded fund (ETF) market flows.
Growth was driven by the iShares U.S. and European product lines, which continue to be adopted by investors across the globe. The U.S. product line led the way with a record US$82.8 billion of new assets in 2014, surpassing the previous record for U.S. iShares ETFs of US$62.0 billion in 2012. In Europe, the business captured US$20.3 billion in net new flows.
“We’re seeing ETFs truly come of age, as more investors around the world recognize and embrace the versatility of these vehicles—whether it’s for their strategic buy-and-hold investments or precision exposures to express a view on virtually any market,” says Mark Wiedman, global head of iShares at BlackRock. “ETFs have also been discovered by capital market participants, who are using them as efficient substitutes for futures and swaps.”
Fixed income was a key driver of flows globally, as investors of all kinds increasingly adopt ETFs as an essential instrument for accessing the bond markets. He says iShares captured US$40.3 billion globally or 48% of all new flows into fixed income ETFs.
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