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April 19, 2013 at 10:39 AM
State Street (STT) and BlackRock (BLK), two of the largest ETF providers, released earnings this week that illustrate the continued momentum behind exchange-traded funds. Data from Morningstar for March 2013 showed strong flows to the two firms, along with very sizeable flows to ETF provider Vanguard.
State Street, which released its earnings Friday, has 120 SPDR-branded ETFs and 14 mutual funds in its product line.
In the first quarter, it earned $0.98 per share on $455 million of net income versus $0.85 per share on $417 million of net income in the year-ago period. Sales of $2.44 billion grew 1% from the first quarter of 2012.
Total assets under administration were $25.4 trillion as of March 31 vs. $23.3 trillion a year ago.
According to a presentation by State Street in March, the firm had $81 billion in net new assets in 2012, $41 billion of which were in ETFs. Of the $41 billion, $23 billion were in equity-focused products.
For its part, BlackRock—which markets iShares—had first quarter ’13 EPS of $3.62, up 15% from a year ago. Revenue increased 9% from the first quarter 2012.
“Our $39.4 billion in long-dated net new business for the quarter is indicative of positive momentum across all client channels and was driven by the strategic themes we continue to focus on: ETFs, retirement, income, multi-asset-class products and alternatives,” said BlackRock CEO and Chairman Laurence D. Fink (left) in a press release.
