BlackRock has announced that its iShares business led the global industry by capturing $102.8bn in new flows in 2014, 31% of the record-breaking $330.7bn 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 iShares U.S. product line led the way with a record $82.8bn of new assets in 2014, surpassing the previous record for U.S. iShares ETFs of $62.0bn in 2012. In Europe, the business captured $20.3bn in net new flows.
Mark Wiedman, Global Head of iShares at BlackRock commented:
“iShares growth this year was driven by two global product lines. Clients from Asia and Latin America continue to use both our U.S. and European ETF suite in record numbers, contributing $19.8bn in net new assets through November 30th.”
“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.
“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. iShares captured $40.3bn globally or 48% of all new flows into fixed income ETFs.”
Australia’s ETF market also experienced record inflows
In Australia, the local ETF industry continued its rapid expansion, growing to $15bn in terms of onshore assets by the end of 2014, up from $10bn at the end of 2013.
“Australian investors are rapidly incorporating ETFs into the core of their portfolios” noted Jonathan Howie – Head of iShares Australia.
“They’re utilizing ETFs for the same reasons as investors globally – simple, low-cost access to the worlds markets”.
iShares cemented its position as the number 1 issuer in Australia, with over 36% market share.
Globally iShares AUM exceeded $1 trillion as of December 31, 2014.
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