Stephen Cohen, Chief Product Officer and Global Head of iShares at BlackRock said: “Crossing US$5 trillion in iShares AUM is a defining moment for investors and for the industry. ETFs have become the technology of choice to access markets, build better portfolios, and manage risk with transparency and scale. 

We believe that indexing will continue to be the predominant growth driver for ETFs, but innovation is opening new frontiers— from more granular indices, to fixed income, active, and digital strategies—and we believe this is just the beginning. Today, ETFs represent just 6% of the global capital markets. We believe the ETF industry will nearly double, from US$15 trillion to US$27 trillion, in the next five years.

iShares is leading the next wave of growth, broadening access and helping more investors harness the power of capital markets worldwide.”

This achievement follows a record-breaking first half in iShares ETF inflows of US$192 billion^[1] and is powered by global growth across multiple areas, including: 

• Fixed Income ETFs: The iShares bond franchise has more than US$1 trillion in AUM globally, representing approximately 40% market share^[2], driven by investors increasingly turning to iShares ETFs to navigate today’s complex fixed income markets. 
• Digital Asset ETPs: More than US$100 billion in combined AUM, led by flagship iShares products that rank among the top five fastest-growing ETPs in industry history^[3].  
• Active ETFs: iShares manages more than US$78 billion across more than 100 active ETFs globally, reflecting strong investor demand for alpha and targeted outcomes^[4]. 
• Rapid adoption in Asia Pacific: iShares has introduced 27 new APAC-domiciled ETFs in the past two years alone, bringing the total to 112 across markets including Japan, Hong Kong, Singapore, Australia and soon in Taiwan. Among these include:
  • The first iShares Active ETF introduced in Australia
  • The first iShares Active ETF set to list in Japan (listing September 10, 2025)
  • Last month’s launch of the iShares platform in Taiwan, with the first iShares ETF set to IPO this month
  • 16 APAC-domiciled iShares ETFs now above US$1bn in AUM, with two above US$10bn.^[5]

Aarti Angara, APAC Head of Global Product Solutions, said: “Across Asia Pacific, ETFs are providing investors with better choice, more convenient access and increased affordability—a powerful proposition that is driving a wave of ETF adoption throughout the region. From institutional investors using bond ETFs to access ever-more precise areas of global bond markets, to wealth and retail users using ETFs as core building blocks to build diversified portfolios, these powerful tools are empowering investors of all types to realize their goals.”

Nicholas Peach, APAC Head of iShares, said: “What we have seen in markets in Asia Pacific is that when we make investing easier, more effective and more affordable, more people choose to invest—and they are increasingly choosing to do so with iShares ETFs. We look forward to the journey ahead, in particular bringing more of our global experience and local expertise to new markets such as Taiwan, and to new generations of investors across the region.”

Today, iShares serves clients in over 25 markets, offering more than 1,600 ETFs, the broadest range in the industry.

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Based in Hong Kong, Mr Loehnert will be responsible for growing iShares Exchange Traded Fund (ETF) market share and ETF adoption among investors in the region, as well as institutional index mandates.

Mr Loehnert most recently headed BlackRock’s International Cash Management Business, driving the growth in global liquidity assets across multiple currencies.

Rachel Lord, BlackRock’s Chair and Head of Asia-Pacific, said: “I am delighted to welcome Peter to Hong Kong to lead Asia-Pacific iShares and Index investments in its next stage of growth. Peter has gained outstanding experience in building our International Cash Management and Global Transitions businesses over the last decade, and developed a strong talent bench in both. He brings a deep understanding of Asian products, markets and client needs, and we look forward to him accelerating the adoption of index products throughout the region.”

Salim Ramji, Global Head of iShares and Index Investments, said: “Asia is already a critical hub for our wealth and institutional clients in the region to gain access to global exposures through our UCITS and 40 Act ETFs – and more recently through our fast-growing Asia-listed ETFs. Peter’s experiences in leading scale investment and client teams and his entrepreneurial spirit will serve us well as we create many millions more clients in the region who can benefit from the convenience, affordability, transparency and resilience of our iShares and index investments.”

Prior to his current role, Mr Loehnert served as Global Co-Head of the Transition Management team within BlackRock’s Trading and Liquidity Strategies Group. Before joining BlackRock in 2011, he held positions at Nomura International, Lehman Brothers International (Europe), Cominvest Asset Management and Commerzbank AG where he started his career in 2004.

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Christian Obrist

iShares has listed two fixed income ETFs – iShares Yield Plus ETF (Ticker: IYLD) and iShares Core Corporate Bond ETF (Ticker: ICOR) – on the ASX to provide Australian investors a low-cost access point to a diversified portfolio of high-quality Australian investment grade corporate bonds. The addition of the two funds complements the broader iShares fixed income ETF suite, offering Australian investors increased flexibility to optimise fixed income allocations in portfolios.

The iShares Yield Plus ETF seeks to produce stable, predictable returns to meet investors’ demand for capital preservation and liquidity while maximising yield. At the same time, the fund offers investors portfolio diversification benefits, through the exclusion of Australia’s major banks, implemented via a highly diversified portfolio of securities. It carries a 0.12% per annum management fee and targets a 0.75%-1.0% yield margin over the RBA cash rate, replicating the performance of its customised benchmark, the BACCREX4. The Fund provides monthly distribution payments and provides for daily liquidity.

The iShares Core Corporate Bond ETF, benchmarked to the Bloomberg AusBond Credit 0+ Yr Index, seeks to provide an attractive, reliable income stream for fee-conscious investors. The fund carries a 0.15% per annum management fee and gives investors the opportunity to tap into stable income from a highly diversified portfolio of high-quality Australian corporate bonds.

Applying BlackRock’s baseline screens, both funds explicitly exclude issuers involved in controversial weapons, civilian firearms, fossil fuels, tobacco and UN compact violators. The screens are reviewed on an annual basis to ensure continued relevance as investors’ needs evolve over time.

Christian Obrist, Head of iShares, Australasia said:“During periods of heightened market volatility, we have seen Australian investors deepen their usage of fixed income ETFs as key building blocks to construct resilient portfolios, whether it is for income generation, capital preservation, or as diversification from equities.

“We’re excited to add iShares Yield Plus ETF and iShares Core Corporate Bond ETF to our existing fixed income ETF suite, particularly in the current backdrop of ultra-low interest rates and reduced equity dividends. We believe investors are set to benefit from the broadening of cost-effective, liquid investment choices in our ETF product range as the two funds aim to meet investors’ demand for diversified sources of income.

iShares rounds out fixed income ETF suite in Australia Launches iShares Yield Plus ETF and iShares Core Corporate Bond ETF Expanding liquid, transparent income-focused solutions for Australian advisers and retail investors  “Designed with investors’ needs in mind, both funds aim to provide attractive, stable income streams via exposure to a diversified portfolio of high-quality Australian investment grade corporate bonds. Investors will also benefit from investing in institutional quality ETFs that meet daily liquidity and transparency demands.”

Pioneered by iShares in 2002, fixed income ETFs empower all types of investors to build robust portfolios to meet their investment objectives such as income and portfolio diversification as well as capital preservation. Investors have increasingly turned to fixed income ETFs for their rich diversity of exposures and good value. In 2019, fixed income ETFs eclipsed $1 trillion USD globally1 with iShares fixed income ETFs accounting for over 47% of these assets at year end and $112 billion USD in flows. In Australia, fixed income ETFs assets surpassed $8 billion AUD as at 30 April 20202 , and the iShares Core Composite Bond ETF (Ticker: IAF) continues to see strong interest with over $100 million AUD inflows year to date, as at 26 May 2020.

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[1] iShares flows and AUM figures sourced by BlackRock as of December 31, 2019. Industry data is captured from a number of sour ces by BlackRock, including provider websites, fund prospectuses, provider press releases, provider surveys, Bloomberg, the National Stock Exchange, Strategic Insight Simfund, and Wind. Flows are derived using daily net asset values and shares outstanding using the most recent data we can capture at month-end. iShares ETFs saw global net inflows of $184.644bn in 2019.
[2] Data from ASX landscape report: https://www.asx.com.au/documents/products/ASX_Investment_Products_April_2020.pdf

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Christian Obrist

In a year plagued with market volatility risks, investors have continued to look to exchanged-traded funds (ETFs) to access liquidity and diversify risk. According to Christian Obrist, Head of iShares Australasia, Australia’s ETF growth has not only been driven by investors’ desire for exposure to global equities, but also the desire for exposure to bonds, which reached a milestone US$1 trillion global AUM in June 2019.

Christian said: “It took nearly two decades for bond ETFs to surpass $US1 trillion in global assets, however, I believe the next leg of growth will be swifter. ETFs bring convenience and transparency to a historically hard-to-navigate asset class and bond ETFs have transformed how investors can access fixed income by providing precision and transparency. At iShares, we see a tremendous runway for the growth of bond ETFs.”

Global bond ETF assets are currently growing at 20% annually, five times the rate of other open-end bond funds.^[1] Yet even at US$1 trillion, bond ETF assets represent less than 1% of the US$105 trillion global fixed income marketplace. ^[2]

“Global bond ETF assets are well positioned to double to US$2 trillion by 2024. Investors are increasingly looking for alternative investment options to act as a shock absorber to their portfolios during periods of market volatility,” said Christian.

Commenting on Australian investors’ adoption of bond ETFs, Christian said: “Following the recent cash rate cut and the RBA signalling further cuts this year, we can expect term deposit rates will continue to dwindle. This makes bond ETFs an attractive option for individuals who currently have lazy cash sitting in bank savings accounts that could be potentially earning a higher return.”

Christian concluded: “Investors have realised bond ETFs are an efficient way to access different sources of return and manage risk. Individuals can use bond ETFs to help generate predictable income through laddering while professional portfolio managers can use high-yield bond ETFs alongside individual securities in actively managed funds.^[3] Hedge funds can use ETFs for targeted long and short positions. In all cases, bond ETFs make it easy to build and manage fixed income allocations.”

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