BlackRock’s iShares fixed income exchange-traded funds (ETFs) have reached US$1 trillion in assets under management (AUM) across the globe.
The milestone follows more than 20 years since the asset management giant launched the first US-domiciled fixed income ETFs in 2002.
iShares’ US$1 trillion ($1.48 trillion) asset milestone also comes a year after the global bond ETF industry reached US$2 trillion ($2.97 trillion) in assets, “marking a historic moment for the industry”, the firm stated.
BlackRock expects the growth of fixed income ETFs to continue and accelerate to US$6 trillion in AUM by 2030.
“We’re extremely proud that BlackRock was a pioneer in this space, introducing the first fixed income ETF more than 20 years ago. Their invention has transformed the global fixed income market by allowing investors to buy and sell entire portfolios of bonds on stock exchanges with just a few clicks,” remarked James Waterworth, director of wealth distribution in Australia at BlackRock.
“Bond ETFs have equally transformed the Australian markets, making it easier for investors to adjust their fixed income portfolio in real time and democratising the local fixed income market – which was traditionally difficult to access for retail investors.”
Last year, bond ETFs were one of the most popular asset classes as they captured 37 per cent of annual net flows, according to Global X, due to its defensive capabilities and attractive yield profile.
Waterworth noted that the Australian bond ETF market has expanded at an average annual rate of 43 per cent since 2013 and exceeded $28 billion in AUM in July 2024.
“This illustrates the degree to which Australian investors have embraced the convenience, efficiency and transparency that bond ETFs offer,” he said.
“We’re proud to have played a role in that through iShares, launching one of the first bond ETFs in Australia in 2012. Today, we have one of the broadest ranges of fixed income ETFs in Australia, with more than $5 billion assets under management across 13 cash and bond ETFs.”
Just last month, BlackRock Australia announced the launch of its latest fixed income ETF. The iShares 20+ Year US Treasury Bond ETF (AUD Hedged) will have a management fee of 0.15 per cent and expands the available fixed income ETF range for Australian investors and advisers.
