BlackRock Sees Record ETF Inflows While Recession Warnings Mount
Even as economic clouds gather, investors are leaning into exchange-traded fundsand BlackRock is reaping the rewards. The asset management giant saw a massive $107 billion in net ETF inflows in the first quarter of 2025, marking its strongest Q1 performance ever for the iShares product line.
The surge in flows arrives against a backdrop of rising recession concerns. CEO Larry Fink recently cautioned that the U.S. economy may already be in contraction territory. Still, during the companys earnings call, he struck a confident tone, citing deep client engagement and a solid start to the year.
Weve never been more connected to our clients, Fink said, pointing to a 6% rise in organic base feesBlackRocks best Q1 growth since 2021.
The firms overall numbers reflected that momentum. Revenue climbed to $5.3 billion, up 12% year-over-year, while adjusted operating income jumped 14% to hit $2 billion. Earnings per share came in at $11.30, a 15% increase from the same period last year.
Investors Flock to ETFs for Stability and Strategy
While core equity ETFs led the pack with $46 billion in inflows, strategic ETF products also saw strong demand, attracting $35 billion. Actively managed ETFs gained $9 billion, and even digital asset ETFswhich operate in a far more volatile spacepulled in $3 billion over the quarter.
The firms total assets under management rose to $11.6 trillion, up from $10.5 trillion the previous year. ETFs now account for $4.3 trillion of that total, solidifying their growing role in modern portfolio construction.
ETF revenues grew accordingly, reaching $1.8 billion for the quarterup from $1.5 billion during the same period in 2024.
Fink emphasized that BlackRocks broad platform is designed for resilience. Weve built an investment engine that performs across cyclesspanning public and private markets, backed by tech infrastructure that attracts capital even when conditions are rough, he said.
The record-breaking ETF performance, even as markets wobble, underscores how embedded these instruments have become for investors navigating uncertainty. For BlackRock, its not just a strong quarterits a validation of strategy.
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