Examining BlackRock's Valuation And Forecasting Returns

BlackRock (BLK) is the 800-pound gorilla of the asset management and investment industry.  As of the FY 2019 Q2 earnings release, BlackRock has $6.96 T in assets under management.  That's an absolutely staggering sum.

Shares of BlackRock have been quite volatile since I last wrote about them in September 2018.  The share price was down nearly 24% at its lowest and currently sits just 3.0% higher from last year compared to the S&P 500's 7.7% gain.

That under-performance compared to the S&P 500 got me interested to take another look at the leader in the ETF space.  As you can see in the following graphic from Morningstar, BlackRock has ~39% market share, which has remained relatively stable since ~2012.  Vanguard has been gaining share, but largely at the expense of State Street.

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