The Blackrock-managed family of ETFs ended 2019 with US$185 billion in new assets and 33 per cent global market share.
Fixed income ETFs broke US$1 trillion globally, with iShares fixed income ETFs accounting for 47 per cent of those assets at year end and US$112 billion in flows, while iShares Factor ETFs gathered US$34 billion of inflows.
iShares sustainable ETFs gathered US$12 billion globally.
“Clients are increasingly using iShares as instruments of active return,” said Salim Ramji, global head of iShares and Index Investments.
“In 2019, clients scaled their use of iShares across our Fixed Income, Factor and Sustainable ETFs, with record flows in each; investors are using iShares not just for Core building blocks but as tools to seek better outcomes across their entire portfolio.”
iShares also reached over US$565 billion in fixed income AUM globally in 2019.
“In 2019, iShares Fixed Income ETFs were about more than indexation – they became an enabling technology in the modernisation of the bond market,” Mr Ramji said.
“Active fixed income managers added them to help improve alpha through tactical allocation and liquidity management; central banks used them to access securities markets more conveniently; institutions used them to execute their portfolio trading strategies at lower cost.”
2019 also saw more interest in ESG ETFs, with Sustainable ETFs becoming iShares’ fastest-growing category.