How Will BlackRock (BLK) Stock Respond To ETFs Losing Market Share to Vanguard Group?

NEW YORK (TheStreet) -- Shares of BlackRock, Inc. (BLK) are slightly lower in pre-market trade after it was reported that as the firm is set to amass $1 trillion in exchange-traded fund assets in its iShares business, U.S. retail investors increasingly prefer to send their money to low-cost leader Vanguard Group, highlighting a weak spot for the world's biggest money manager, according to Reuters.

With $998 billion in ETF money, BlackRock has more than the next contenders, Vanguard and State Street Corp. (STT) combined. But the company has struggled to compete with Vanguard, known for its investor-friendly low-cost investing, for Mom and Pop's nest eggs, Reuters said.

Retail investors now account for more than half of the $1.8 trillion in ETF assets under management in the U.S, according to consulting firm PwC.

Must Read: Warren Buffett's 25 Favorite Growth Stocks

 

TheStreet Ratings team rates BLACKROCK INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate BLACKROCK INC (BLK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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