Why are institutions turning to ETFs?

Institutions increasingly turned to ETFs to rebalance during recent record volatility.

Learn more about how institutional investors also use ETFs as a complement for bonds, derivatives, and liquidity management based on a Institutional Investor global survey of 766 decision makers.

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Why ETFs
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54% of institutions used bond ETFs to transact or source individual bonds.

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55% of institutions cite speed & market exposure as key strengths of ETFs.

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70% of institutions used ETFs to rebalance portfolios.

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58% of institutions say transparency is a top reason for using ETFs in multi-asset strategies.

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Based on 766 respondents. Usage figures comes from an Institutional Investor global survey of institutional investment decision makers surveyed in Q3, 2020.

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This whitepaper was sponsored by BlackRock Investments, LLC, which is not affiliated with Visual Capitalist or any of their affiliates.

In Q3 2020, Institutional Investor conducted a global survey of 766 institutional investment decision makers at insurers, endowments, family offices, foundations, pensions, and asset management firms regarding their experiences and actions during severe market volatility in the early part of 2020. Survey data citations throughout the report refer to questions answered by 760 or more respondents unless noted otherwise. The study was sponsored by BlackRock. BlackRock is not affiliated with Institutional Investor or any of their affiliates. Carefully consider the Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing. Investing involves risk, including possible loss of principal. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. Transactions in shares of ETFs may result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders. When comparing stocks or bonds and ETFs, it should be remembered that management fees associated with fund investments are not borne by investors in individual stocks or bonds. Transactions in shares of ETFs will result in brokerage commissions and will generate tax consequences. All regulated investment companies are obliged to distribute portfolio gains to shareholders. Diversification and asset allocation may not protect against market risk or loss of principal. The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective. The iShares Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”). ©2021 BlackRock, Inc. All rights reserved. iSHARES and BLACKROCK are trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners.