Invest in BlackRock [Guide 2022]
Published: 10 January 2022 by Andrew
Last year was tragic for many banks that recorded big losses, but the financial companies instead took advantage of the situation and one particular has grown a lot: BlackRock. In this guide we will analyse if starting to Invest in BlackRock is a good idea or not.
We are talking about a giant, the largest asset manager in the world that in the past year alone has returned a nice + 47% to shareholders and seems positioned to continue this performance.
Compared to the classic companies that we deal with, this fund is both a security to be traded and a list of companies that we treat carefully, which can prove to be very interesting, especially in the creation of a diversified investment portfolio.
Do you want to know how to invest in BlackRock? Follow these 4 steps:
- Register to a regulated CFD Broker like eToro
- Practice on the Demo account to familiarize yourself with the platform
- Make the minimum deposit required
- Select the BlackRock CFD on the platform and start investing
This way you can buy BlackRock shares without paying commissions, in a safe and regulated manner.
But CFD brokers not only offer the BlackRock stock but also numerous ETFs belonging to this financial giant. Here is a list of the best online trading platforms suitable for trading BlackRock funds safely:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
What is BlackRock?
BlackRock Inc. (BLK) is the largest investment firm in the world, with nearly $ 8.7 trillion in assets under management as of December 31, 2020.
But it is also a publicly traded company on the New York Stock Exchange and its market capitalization is approximately $ 106 billion.
This company provides investment and advisory services to private and institutional clients around the world.
BlackRock is one of the pioneers of ETFs (Exchange Traded Funds), having purchased the iShares product line from Barclays Global Investors in 2009.
Since then, ETFs (which are tradable funds like equities) have taken off, becoming the fastest growing investment vehicle in the world, oil ETFs are a clear example of this.
To understand how rapid the expansion of ETFs has been, just think that 10 years ago there were about 900 ETFs in the United States, while now we can count over 2000.
Economically, US ETFs did not reach $ 5 trillion 10 years ago while now they are over $ 5 trillion in the US alone and $ 7 trillion globally.
How to invest in BlackRock shares
At this point many of you will be interested in buying BlackRock stock or at least investing in its funds.
On a practical level you have two options that are very different from each other but we will expose them quickly:
- Traditional Banks
- CFD brokers
Traditional banks will give you the opportunity to both buy ETFs and buy shares but to do so you will have to open a securities account and pay account maintenance costs, stamp duty and a series of commissions on the investments you make.
With CFD Brokers you will not “physically” buy BlackRock shares or ETFs but you can invest in the price fluctuations of these securities.
The advantages of CFD Brokers are numerous, let’s see the main ones:
- They are commission free
- They allow you to aim both up and down
- They do not need large capital to invest
- The trading platforms are easy to use
Now let’s see where to buy BlackRock shares or ETFs:
Where to buy BlackRock shares or ETFs
The list of brokers that we have included in the introduction to this review is an excellent starting point. It includes the main intermediaries that offer CFDs (Contracts for Difference) and are in possession of a license, often more than one.
When making financial investments, the safety and reliability of the intermediary are essential.
The CONSOB or CySEC authorizations enjoyed by these brokers are a guarantee for investors and protect their deposits.
To narrow the field we have selected the most suitable online brokers to invest in BlackRock: eToro, ForexTB and Trade.com.
Let’s see their characteristics in detail:
eToro could only be our first choice, it is a Broker with over 10 million subscribers and represents a perfect choice for both ETFs and shares, thanks to its numerous CFDs.
His CONSOB license is a confirmation of safety and reliability but it is his trading platform that has made him so famous.
Here’s what the BlackRock stock looks like on the eToro trading platform:
How do you buy BlackRock shares or ETFs with eToro?
- Register for free on eToro
- Log into your Demo or real account (by depositing at least € 200)
- Select the BlackRock or ETF CFD you are interested in and click on “Trade”
- Decide whether to buy or sell and how much to bet in the operation
Investors are often attracted to automatic trading systems and even in this sector eToro was not caught unprepared.
He has created a really efficient tool: Copy Trading.
This system allows you to copy the most experienced traders, chosen by you on eToro, in a totally automatic way.
Copy Trading will copy on your account all the operations made by these expert investors and in this way you will get two great advantages:
- Replicate the returns of these experienced traders
- Learn their trading strategies
Here are some examples of traders you could copy, taken from the “People” section of eToro:
Click here and choose which trader to copy
ForexTB is considered to be an intermediary who cares first and foremost about the results of its investors.
He obtained a regular CySEC license, valid throughout Europe and created what would later become the most downloaded entry-level Trading Course in the world.
This is an ebook that teaches the basic rules of online trading as well as the most effective strategies, but without too many technicalities and enriching everything with practical examples.
The course is free, download it now from the link below:Click here and download the Trading Course for free
To offer the maximum of options to its users, ForexTB offers two trading platforms, both free, with which you can invest in BlackRock or ETFs:
- Metatrader is a very professional platform, complete and full of indicators of all kinds.
- The Web Platform is simple, intuitive, fast and accessible from any device, without installing anything.
To buy BlackRock shares or ETFs with ForexTB you simply have to follow these 4 steps:
- Register on ForexTB
- Choose the trading platform
- Select the BlackRock CFD or ETF of your interest and click on Buy (or on Sell to sell short)
- Decide the amount to invest
Trade.com has tried to distinguish itself from the classic brokers on the market, proposing a minimum deposit threshold lower than that of its competitors.
In fact, it allows you to open a trading account by paying only 100 euros.
Trade.com’s security is guaranteed by CONSOB and CySec for Europe and the trading platform is very complete, full of top-level tools.
To buy BlackRock shares or invest in ETFs on Trade.com you need to follow these instructions:
- Register for free on Trade.com
- Log into your Demo or real account (by depositing a minimum of € 100)
- Select the BlackRock CFD or ETF you are interested in and click on “Buy” to buy or “Sell” to sell short
- Decide how much to invest in the operation.
To understand how to trade stocks and ETFs following effective strategies, we recommend that you read the Trading Course created by this Broker.
This ebook explains the rules of technical analysis that are the basis of investments and shows the best strategies to be implemented to obtain constant returns over time.
The course is free and you can download it from the link below:Download the Trading Course for free by clicking here
Invest in BlackRock: key factors
We are describing the largest investment company in the world but what are the key factors that make BlackRock so attractive?
Here are a few that hint at why many investors are so interested in this stock and the ETFs that make up BlackRock’s basket:
- BlackRock operates as a single business segment, as if it were a single giant fund.
- The company derives most of its income from investment advisory and administration fees, leaving the profits to investors.
- BlackRock recently completed the $ 1.05 billion acquisition of indexing firm Aperio to improve returns.
These are just some of the factors you should consider if you are considering to invest in BlackRock or its ETFs, but let’s move on with our review.
Perhaps few know that Blackrock is one of the largest foreign investors in Europe.
Even though the parent company is based in New York, it invests in Europe for a third of its turnover.
But this is not just about money but also about decision-making power. BlackRock has such financial resources that it can influence decisions that change the economic fortunes of an entire country.
Competitors of BlackRock
A recent study by analysts from Bank of America and Morningstar predicted that ETFs will reach $ 50 trillion in invested capital by 2030 (worldwide).
This is where BlackRock’s leadership becomes even more important, as it has the largest market share of these funds ever with 40% of the total.
Here are some of the fiercest competitors:
- Vanguard with about 18%
- State Street with about 12%
Below we show a list of the top 10 BlackRock ETF funds in order of size:
- iShares Core S&P 500 ETF
- iShares Core MSCI EAFE ETF
- iShares Core U.S. Aggregate Bond ETFs
- iShares Core MSCI Emerging Markets ETF
- iShares Russell 2000 ETF
- iShares Core S&P Small-Cap ETF
- iShares Russell 1000 Growth ETF
- iShares Core S&P Mid-Cap ETF
- iShares MSCI EAFE ETF
- iShares Russell 1000 Value ETF
Many of these ETFs are also available on the platforms of the CFD Brokers that we have presented in this BlackRock review. At the end of the guide you will find the links to register for free.
Best BlackRock Funds
The best BlackRock fund is the iShares Core S&P 500 ETF.
It manages an asset of $ 27.1 billion and represents a collection of over 3,500 shares, approximately 7 times the S&P 500 index.
This makes it very well balanced, a very good indicator of the US economy as a whole.
Invest in BlackRock: Fund yield
BlackRock has approximately $ 8.6 trillion in assets under management, 17% more than a year ago. In the fourth quarter, the company had an inflow of $ 127 billion in its funds, about the same as the previous year.
Most popular were its exchange-traded funds (ETFs) iShares, which saw an investment increase of $ 78 billion in the quarter.
The performance of the BlackRock stock was driven precisely by the increase in these funds. Net income increased 19% to $ 1.5 billion, or $ 10.02 per share, while revenues increased 13% to $ 4.5 billion with investment advisory fees representing $ 3.4 billions of that total revenue.
Net income jumped 10% to $ 4.9 billion last year, while revenues increased 11% to $ 16.2 billion year-over-year.
How to invest in BlackRock: conclusions
BlackRock is an efficient and very well managed company that is an excellent investment option.
It has a return on equity of around 15% and a profit margin of around 30%.
The great thing about BlackRock is that it allows you to evaluate many trading options, either by trading the stock directly or by targeting the ETFs it manages.
Given the constant growth of these funds traded on the stock exchange in recent years, BlackRock is a stock to always keep in mind when you want to invest in the markets, because it offers very precise indications on the trend of investments around the world.
Whether you want to invest in BlackRock stocks, or are interested in creating a portfolio of high-yielding ETFs managed by the giant “Black Rock”, you need to plan a strategy.
The best way to do this is to use Demo accounts which allow you to practice and optimize a trading strategy without running any risk.
The brokers we have proposed as suitable intermediaries to trade the BlackRock stock or ETFs all offer a free Demo account, here are the links to access:
- Access to the eToro Demo account for free by clicking here
- Register on ForexTB and try the Demo account by clicking here
- Log in to the Trade.com Demo Account by clicking here
It is the largest investment company in the world, managing approximately $ 8.7 trillion.
BlackRock has approximately $ 8.7 trillion in assets under management, 17% more than a year ago. Yields are growing year over year.
The best BlackRock fund is the iShares Core S&P 500 ETF, which manages an asset of $ 27.1 billion.
You can invest in both BlackRock shares and its ETFs by taking advantage of CFD brokers such as eToro, which are the safest and cheapest option since they are commission-free.