Passive investing strategies have become more popular in the last decade, reaching $15 trillion under management worldwide as of May 2021.1 As opposed to active investing strategies that bet on assets expected to outperform the market, passive investing generally aims to track the performance of the market as a whole, with the attendant lower risk and lower management fees. This trend has led to a novel phenomenon in financial markets: the giant asset manager, or “universal owner,” of which the three largest are BlackRock, Vanguard Group, and State Street Corporation. The “Big Three” U.S. asset managers now have over $20 trillion in total assets under management, approximately equivalent to the nominal GDP of the United States. Of this total, BlackRock manages the largest share: about $8.5 trillion as of late 2022, equivalent to about one third of U.S. GDP and two-thirds to three-quarters of which is in passively-managed funds at any given time.2 The Big Three now own an average of over 20% of the shares of firms in the S&P 500 index, a figure forecasted to rise to nearly 40% over the next two decades. BlackRock, by itself, has at least a 5% holding in at least 95% of firms in the S&P 500.3
FAQs
Does BlackRock work with the government? ›
In May 2009, BlackRock Solutions was retained by the U.S. Treasury Department to analyze, unwind, and price the toxic assets that were owned by Bear Stearns, American International Group, Freddie Mac, Morgan Stanley, and other financial firms that were affected in the 2007–2008 financial crisis.
What is the relationship between BlackRock and the Fed? ›BlackRock has been essentially deputized to handle the technical elements of federal bailouts, but is not held to the same scrutiny as comparable firms that have been culpable in financial crashes. BlackRock's absorption of government alumni for high-level positions further reinforces its influence.
What are the BlackRock allegations? ›Tennessee Lawsuit Against Blackrock
Instead, he alleges that BlackRock has confused Tennessee consumers by saying that it both seeks to maximize investment returns and focuses on minimizing environmental impact, which Skrmetti believes to be incompatible.
Together, BlackRock and Vanguard own 18% of Fox, 16% of CBS, 13% of Comast — which owns NBC, MSNBC, CNBC, and the Sky media group, 12% of CNN, and 12% of Disney — which owns a number of subsidiaries.
Who is BlackRock owned by? ›BlackRock, which has offered shares to the public since its 1999 IPO, is mostly owned by institutional investors, including the Vanguard Group, State Street Corp. (STT -3.25%), Bank of America (BAC -4.86%), and Temasek Holdings, a Singapore state-owned conglomerate.
Why is BlackRock in trouble? ›Mississippi Secretary of State Michael Watson issued an administrative “cease and desist” order released on Wednesday to the world's largest money manager. In a 33-page document, Watson alleges that BlackRock is misleading investors in its funds about the firm's climate-related efforts.
What are the problems with BlackRock? ›They also invest heavily in companies driving deforestation and back firms that undermine Indigenous rights. Asset managers that continue to fund the climate crisis face exponential risks, both environmental and financial. That's BlackRock's Big Problem.
Why does BlackRock have a bad reputation? ›Ethical and Social Concerns. Environmental Issues: Critics argue that BlackRock has not done enough to steer investments away from fossil fuel companies and other industries contributing to climate change.
How powerful is BlackRock? ›According to Jake Tran, BlackRock is a company that oversees $21 trillion via their AI, and it has over $9 trillion in public financial assets. It is one of the top shareholders in many of the top companies on the planet, including Apple, Microsoft, Amazon, Google, Tesla, J.P. Morgan, and Meta.
Who is the largest shareholder of BlackRock? ›BlackRock's largest institutional shareholders are Vanguard Group, BlackRock itself, State Street Global Advisors, Temasek Holdings, and Bank of America.
How many homes does BlackRock own? ›
Originally funded by the private equity giant Blackstone, the company has since become its own publicly traded company. The company owns 84,567 homes, of which 11,862 are in California, according to its most recent filing with the Securities and Exchange Commission.
Who is BlackRock regulated by? ›Explore more. In the UK and Non-European Economic Area (EEA) countries: this is Issued by BlackRock Investment Management (UK) Limited, authorised and regulated by the Financial Conduct Authority.
Whose money is managed by BlackRock? ›BlackRock setting the record straight
BlackRock is proud to serve pension funds providing for nurses, teachers, firefighters, law enforcement, and other workers in public and private sectors; individuals who are investing for their own retirement or other goals; as well as a range of other clients.
As of the first quarter of 2024, the New York City-based asset management company BlackRock had total assets under management (AUM) of around 10.5 trillion U.S. dollars. This compares to 8.59 trillion U.S. dollars of AUM as of 2022. The total assets under management of BlackRock Inc.
What exactly does BlackRock do? ›We're an asset manager and one of the world's leading providers of investment, advisory, and risk management solutions. We're a fiduciary to our clients, and by investing on their behalf, we help millions of hardworking Americans experience financial well-being.