IShares, the world’s largest exchange-traded fund provider, will likely report assets under management of $3-trillion-plus when parentBlackRockunveils second-quarter earnings on Wednesday, says analyst Kyle Sanders of Edward D. Jones.
BlackRock (ticker: BLK) told investors in June that iShares had assets of $2.8 trillion. Overall, BlackRock has$9 trillionin assets.
Analysts on average expect BlackRock to report earnings of $1.44 billion, or $9.42 a share, on revenue of $4.58 billion, according to Bloomberg. In the year-earlier quarter, BlackRock earned $1.2 billion, or $7.77 a share, on revenue of $4.39 billion.
“We’re forecasting that iShares surpasses $3 trillion,” Sanders toldBarron’s.“In our view, iShares is still in the very early stages of its growth potential.”
When BlackRock bought iShares in 2009, it had assets of around $300 billion.
BlackRock has about 35% of the global ETF market of $8 trillion, Sanders said. BlackRock has forecast that ETF assets will reach $15 trillion by 2025.
There will be few surprises in BlackRock’s second-quarter report, given that the firm had acomprehensive investor daylast month. iShares, the company’s Aladdin division, sustainable investing and alternative investing are all likely to report good growth.
“The markets are rising, it’s a great tailwind, and we’re seeing them continue to take market share,” Sanders said.