Blackrock bests Vanguard in ETF flows

But total flows last year were down considerably from 2021

BlackRock Investment Management Company


Blackrock became the industry’s most popular exchange-traded fund (ETF) provider once again in 2022, exceeding Vanguard’s inflows for the first time since 2019, according to data from Morningstar Direct.

Blackrock and its iShares platform, which combined boast more than 2,500 investment products, experienced just under $221bn (£182bn) of net inflows last year, surpassing the £214bn (£176bn) that flowed into Vanguard’s products.

However, both providers were considerably below 2021’s numbers, when Blackrock and Vanguard posted net inflows of $311bn (£256bn) and $355bn (£293bn), respectively.

Citing data from Blackrock, the Financial Times reported that $867bn (£714bn) flowed into ETFs globally during 2022, the second highest figure on record after 2021’s $1.29trn (£1.06trn) peak.

Blackrock director Kristy Akullian said: “While markets spiralled back down to earth in 2022, ETF usage soared as the investment vehicle of choice amid the volatility. [US-domiciled] ETFs as a percentage of total equities traded on exchange averaged 32% for the year – a significant step higher than the 25% the previous four years.”

US exchange traded products attracted net $598bn (£492bn) across the year, according to Morningstar, and though this was some way off the record $902bn (£743bn) of inflows in 2021, the vehicles are clearly growing in their appeal.

Fixed income was another bright spot, and Akullian identified that sticky inflation and aggressive monetary policy pushed investors to safer assets. This translated into record US Treasury ETF inflows, she said, and fixed income ETFs as a whole added $199bn (£164bn) on the year, down only 4% year-over-year.

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