BlackRock is one of the world’s largest asset management firms, managing over $10 trillion in assets. For individual investors looking to invest through BlackRock, there are several ways to gain exposure to their investment products and strategies. In this article, we will explore the key methods for investing with BlackRock as an individual investor.
As the world’s largest provider of exchange-traded funds (ETFs), BlackRock offers numerous ETFs covering almost every asset class. Investors can purchase BlackRock’s iShares ETFs to get broad market exposure or target specific sectors or themes. The iShares suite features low-cost, liquid ETFs tracking various stock and bond indexes.
Another primary way to invest with BlackRock is through their mutual funds and separately managed accounts. BlackRock mutual funds cover a diverse range of strategies including equity, fixed income, multi-asset and alternatives. For larger investors, separately managed accounts allow customized portfolio construction using BlackRock’s investment expertise.
Beyond ETFs and mutual funds, BlackRock also offers services for retail investors such as robo-advisors and college savings plans. By leveraging BlackRock’s scale and resources, these technology-driven investment solutions provide investors with low-cost, customized portfolios.
Purchase BlackRock iShares ETFs for broad market exposure
BlackRock’s iShares ETFs provide exposure to a wide range of asset classes, indices and investment strategies. iShares is the largest ETF provider globally with over $3 trillion in assets under management.
Some of the most popular iShares ETFs for core portfolio exposure include:
– iShares Core S&P 500 ETF (IVV) – Tracks the S&P 500 index of large US companies.
– iShares Core Total USD Bond Market ETF (IUSB)- Provides exposure to investment-grade US dollar-denominated bonds.
– iShares Core MSCI EAFE ETF (IEFA) – Follows an index of international stocks from developed markets.
– iShares Core MSCI Emerging Markets ETF (IEMG)- Holds stocks from emerging market countries.
– iShares Core MSCI Total International Stock ETF (IXUS) – Broad international stock ETF combining developed and emerging markets.
In addition to the core lineup, iShares also offers more focused sector and theme-based ETFs such as healthcare, disruptive technology, dividends and fixed income. iShares ETFs trade commission-free on many brokerage platforms, making them easily accessible for all types of investors.
Invest in BlackRock mutual funds and SMAs
BlackRock manages hundreds of mutual funds across various strategies including equities, bonds, multi-asset and alternatives. The actively managed mutual funds aim to outperform benchmark indexes through security selection and tactical asset allocation.
Some notable BlackRock mutual fund offerings include:
– BlackRock Global Allocation Fund (MDLOX) – A flexible allocation fund that invests in equities and fixed income worldwide.
– BlackRock High Yield Bond Fund (BHYIX) – Focuses on below-investment grade corporate bonds.
– BlackRock Multi-Asset Income Fund (BAICX) – A multi-asset income-oriented fund investing across equity and fixed income.
– BlackRock Emerging Markets Fund (BADEX) – An actively managed emerging markets stock fund.
For investors with over $100,000 to invest, BlackRock’s separately managed accounts (SMAs) offer customized portfolios using the same strategies as their mutual funds. SMAs allow greater flexibility in taxes, trading, and customization of asset allocation compared to mutual funds.
Utilize BlackRock’s technology-driven investment solutions
Beyond traditional funds, BlackRock offers technology-enabled investment services designed for ease of use.
BlackRock’s robo-advisor, Aladdin Wealth, constructs and manages portfolios using proprietary technology and investment strategies from BlackRock. With an initial minimum investment of $5,000, it offers personalized goals-based planning and automated rebalancing.
CollegeAdvantage 529 savings plans use BlackRock’s expertise in college savings. Account holders can build tax-advantaged savings for education expenses through portfolios designed by BlackRock.
BlackRock’s FutureAdvisor provides digital wealth management based on algorithms and BlackRock portfolio strategies. It offers both robo-advisory and human advisors via a hybrid service.
By utilizing BlackRock’s scale and resources, these investment solutions give individuals low-cost access to institutional-quality investment management.
Understand BlackRock’s investment philosophy and process
As one of the world’s preeminent investment managers, BlackRock has a established philosophy and process for managing money.
BlackRock focuses on a long-term, buy-and-hold approach to investing rather than short-term trading. They construct diversified portfolios tailored to each product’s investment mandate.
Risk management is also central to BlackRock’s investment culture. Risk metrics are integrated throughout the investment process to understand exposures and mitigate risks.
BlackRock’s vast size and scale provides informational advantages. Their Aladdin technology platform combines trading, risk analysis, portfolio management and operations tools to support the investment process with data and analytics.
Additionally, BlackRock emphasizes environmental, social and governance (ESG) factors in their investment approach. They utilize ESG analysis across various asset classes as a component of evaluating investment risks and opportunities.
For individual investors, BlackRock provides diverse offerings spanning ETFs, mutual funds, and technology-driven investment solutions. With its vast size and scale, BlackRock offers individuals access to sophisticated investment products and strategies. By leveraging BlackRock’s capabilities through funds and accounts, retail investors can build robust, low-cost portfolios.