They say BlackRock owns the world.
It’s the Nr. 1 issuer of ETFs and has the most Assets under Management (I think about 10 trillion)
What do you think about the Business and the Stock?
I have some pro‘s and con‘s that I would like to share with you.
Pro‘s:
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Blackrock profits from the passive investing trend.
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Blackrock has very much influence (proxy votes and so on)
Con‘s:
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Political risk (because of the big influence)
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Risk from rising rates; I think that people would tend to take the money from the ETFs and put it in safer assets like Bonds (?)
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Competition. Yes, Blackrock is huge but I think vanguard and many other companies could be a serious thread. Reducing costs would draw customers away from iShares ETFs.
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Low brand loyalty (?) – I mean, I don’t care if it’s an iShares or Vanguard ETF on the S&P 500 as long as costs are good.
What do you think about this company/stock?
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