Quarterly profit at the world's largest asset manager shot higher as investors poured more money into its inexpensive exchange-traded funds. Fred Katayama reports.
Investors plowed more money into cheap exchange-traded funds, boosting BlackRock's assets under management to nearly $6 trillion and its bottom line as well. The world's largest asset manager's quarterly profit rose 8 percent and breezed past Wall Street's estimates. Its fee intake from its popular iShares ETF surged. It pulled in more than $53 billion in new money. iShares accounts for more than half of the money BlackRock took in. Evercore ISI senior analyst Glenn Schorr said, "Great quarter for BlackRock. Market growth always helps, but so does strong organic growth, better performance fees, and a little margin expansion." More than a third of the company's assets under management came from outside the U.S. BlackRock CEO Larry Fink told Reuters it's seeing the world's economic growth accelerate. BlackRock shares rose at the market open Wednesday, adding on to their 22 percent gain this year.