BlackRock Inc. (BLK), the world’s largest asset manager, reported strong ETF flows in its first-quarter 2025 earnings release Friday, showing continued investor preference for exchange-traded products even amid growing market uncertainties. The company’s ETF business attracted $107 billion in net inflows, representing its best-ever first-quarter performance for the iShares lineup.
“BlackRock’s positioning and connectivity with clients are stronger than ever, and it’s clear in our results,” Larry Fink, BlackRock Chairman and CEO, said during the earnings call. “We delivered above target 6% organic base fee growth, which represented our best start of the year since 2021.”
The record ETF inflows come as BlackRock’s CEO sees growing economic headwinds, with Fink stating in a recent CNBC interview, “We’re very close, if not in a recession.” Despite this cautious outlook, investors continue allocating capital to exchange-traded funds for targeted market exposure during uncertain times, reflecting how these investment vehicles have become essential tools for navigating volatile markets.
BlackRock’s overall financial results showed strong momentum, with total revenues increasing 12% year over year to $5.3 billion, while adjusted operating income rose 14% to $2 billion. The firm reported adjusted earnings per share of $11.30, a 15% increase from the prior year period, according to the earnings report.
Core equity ETFs led inflows with $46 billion, while strategic ETFs attracted $35 billion. Digital asset ETFs brought in $3 billion despite cryptocurrency market volatility during the quarter. The active ETF category added $9 billion.
The firm’s total assets under management reached $11.6 trillion at quarter-end, up 11% from $10.5 trillion a year earlier, according to the earnings report. ETF assets specifically grew to $4.3 trillion, representing 37% of BlackRock’s total managed assets.
“We’ve intentionally shaped our platform to serve clients in all market environments, building a premier global public-private markets investment and technology firm. We have leading franchises in categories that we expect to benefit from capital flows and investment even against volatile public markets,” Fink noted in the earnings statement.
BlackRock’s results demonstrate how ETFs continue drawing investor capital across market cycles. The company’s ETF revenue grew to $1.8 billion for the quarter, up from $1.5 billion during the first quarter of 2024.