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Index Investing

At BlackRock, our approach to index investing is anything but passive. We understand that investors today demand more efficient returns and innovative ways to use index strategies.
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Why BlackRock for index investing?

BlackRock seeks to provide cost-effective access for institutional clients’ desired market exposures through both widely used and customized benchmarks, all through our proprietary, in-house Aladdin technology. In addition to core allocations, clients use our flexible platform of index strategies for a range of investment needs, including risk management, tactical adjustments and cash equitization.

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Flexibility

Our flexible range of strategies are designed to meet your needs today and in the future.
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Efficiency

We are focused on delivering optimal tracking, consistent returns and lowering the total cost of ownership.
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Precision

Our investment track record spans four decades led us to be entrusted with US$7.75 trillion of assets under management1.

Learn more about index investing at BlackRock

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BlackRock’s Index investing capabilities

With US$7.75 trillion in indexed assets, BlackRock is a global leader in index investing.

Over 2,500 funds

managed against 900+ benchmarks

Exposures available across vehicles

Including pooled, separately managed accounts and exchange traded

Breadth of platform

Strategies across market-cap weighted, index “plus,” ESG, smart beta and asset allocation

Distribution by asset class (%)

Chart of BlackRock’s index distribution by asset class.

Source: BlackRock, as of September 31, 2019.

Index investment management cycle

We combine the best of BlackRock technology and benchmark expertise to create a superior experience across the index investment management cycle.

Index investment management cycle. While proprietary technology platforms may help manage risk, risk cannot be eliminated.

Source: BlackRock, for illustrative purposes only.

    • Review cumulative effect of investment decisions to help identify factors contributing to/subtracting from portfolio performance
    • Risk & Quantitative Analysis Team (RQA) monitors dozens of risk factors globally on a continuous basis.
    • Aladdin advantage: Portfolio engineering tools are integrated on the same platform as risk monitoring tools, making it easy for RQA to provide a third-party risk assessment on portfolios.
    • Detailed knowledge of index methodologies
    • Experience with predicting and projecting index changes
    • Focused on optimal treatment of corporate actions
    • Continual research into index events
    • Aladdin advantage: Proprietary Aladdin ‘Index Pro’ application makes analyzing benchmark changes a clean and efficient process
    • Significant investment in technology
    • Market leading portfolio and risk tools provided by our Aladdin® platform
    • Integrated cost and liquidity analysis
    • Sophisticated optimization tools
    • Aladdin advantage: Custom portfolio construction application built by our portfolio engineering team designed especially for index management
    • Building smart trading strategies designed to access optimal liquidity
    • Large internal marketplace for potential netting of client flows
    • Focused trading research and systems
    • Aladdin advantage: Aladdin’s extensive global trading platform ensures low costs and optimal access to liquidity