MutualFundWire.com: ETFs and Cash Save BlackRock's Q2 Inflows of $68B
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Wednesday, July 16, 2025

ETFs and Cash Save BlackRock's Q2 Inflows of $68B


The Gotham Goliath kept up its inflows streak last quarter, thanks to its giant ETF and cash (i.e. money market) management businesses.

BlackRock [profile] brought in $68 billion in net inflows in the second quarter of 2025, according to the New York City-based asset management titan's Q2 2025 earnings release supplement. The BlackRock team revealed their Q2 2025 earnings report and supplement yesterday. Also yesterday, CEO Larry Fink and CFO Martin Small hosted BlackRock's Q2 earnings call with analysts.

BlackRock's Q2 2025 inflows of $68 billion were down by $16 billion quarter-over-quarter from Q1 2025 and down by $14 billion year-over-year from Q2 2024. Those Q2 2025 inflows include:
  • $85 billion of net inflows into BlackRock's ETF business (which includes iShares), down by $22 billion Q/Q but up by $2 billion Y/Y;
  • $22 billion of net inflows into the cash business, up by $21 billion Q/Q but down by $8 billion Y/Y;
  • $2 billion of net inflows into long-term retail (non-ETF) funds, down by $11 billion Q/Q and down by $4 billion Y/Y; and
  • $48 billion of net outflows from long-term institutional business, up by $2 billion Q/Q and up by $13 billion Y/Y.

    • Small, on yesterday's earnings call, told analysts more about BlackRock's Q2 flows and explained what drove the institutional outflows.

    "Excluding low-fee institutional index outflows, BlackRock's net inflows were $116 billion. ETF net inflows of $85 billion were diversified by channel, and over 1/3 were driven by our clients in Europe," Small stated on the call (as transcribed by the Motley Fool):
    Retail net inflows of $2 billion reflected continued strength in Aperio and our systematic liquid alternatives funds. Institutional active net inflows of $7 billion were driven by insurance client fixed income mandates and strength in infrastructure, private credit and liquid alternatives. Institutional index net outflows of $48 billion were impacted by a single client redemption of $52 billion, primarily from fixed income.

    Also on the call, Fink highlighted the growth of BlackRock's ETF business.

    "Our iShares business continues to be a powerful growth engine and a key driver of industry innovation," Fink said on the call (as transcribed by Motley Fool), noting that iShares now accounts for nearly $5 trillion of BlackRock's AUM. "After nearly 30 years ... innovation remains at the heart of our franchise."

    BlackRock netted $12.05 in adjusted, diluted earnings per share in Q2 2025 (up by 16 percent Y/Y), beating analysts' estimates by $1.23, per Seeking Alpha. With $5.42 billion in Q2 2025 revenue (up by 13 percent Y/Y), BlackRock fell short of analysts' estimates by $40 million.

    The asset manager ended Q2 2025 with a record of about $12.528 trillion in AUM, up by 18 percent Y/Y.


    Printed from: MFWire.com/story.asp?s=70157

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