BlackRock is one of the largest asset management companies in the world, managing over $10 trillion in assets. Many investors are interested in investing directly in BlackRock’s funds and ETFs, but may be unsure of the process. In this article, we will explore the different ways individuals can invest with BlackRock, the minimums required, and the pros and cons of each approach.
As a leading provider of index funds and ETFs, BlackRock offers a wide range of investment options for both retail and institutional investors. Understanding the methods of investing directly with BlackRock is key for those looking to incorporate their funds and take advantage of their scale and expertise.
Opening a brokerage account provides access to BlackRock’s ETFs
The easiest way for individual investors to invest in BlackRock funds is by purchasing their ETFs through a brokerage account. BlackRock’s iShares ETFs track various indexes and market sectors, providing low-cost access to broad market exposure. Popular iShares ETFs include IVV, which tracks the S&P 500 index, AGG for investment-grade bonds, and EFA for international stocks. By opening an account with a major online broker like Fidelity or Charles Schwab, investors can research and trade BlackRock ETFs commission-free. This provides easy access to BlackRock funds while avoiding high account minimums.
BlackRock mutual funds available directly but require $1,000 minimum
In addition to ETFs, BlackRock offers a range of actively managed mutual funds covering equities, fixed income, and alternatives. Investors can purchase shares of BlackRock mutual funds directly from the company by setting up an account on their website. The minimum initial investment for most BlackRock mutual funds is $1,000, with subsequent investments as low as $50. Direct purchases avoid brokerage commissions but do have higher account minimums compared to purchasing through a brokerage. This option makes sense for investors who want access to BlackRock’s actively managed mutual funds and are willing to meet the higher minimum investment.
Institutional share classes provide lower costs for large accounts
For investors with substantial assets, BlackRock offers several institutional share classes with lower expense ratios compared to the retail share classes. Institutional shares like Institutional, Institutional Select, and Class K generally require minimum investments of $1 million to $5 million. The reduced fees on these share classes can result in significant savings for larger accounts invested long-term. Investors who meet the high minimums can access these lower-cost options by working directly with a BlackRock representative to open an institutional account.
BlackRock private funds available to accredited investors
In addition to their public mutual funds and ETFs, BlackRock also manages a number of alternative investment strategies like hedge funds and private equity through their Private Markets Group. Most of these private funds are only available to accredited investors who meet high net worth requirements. Minimum investments in BlackRock’s private funds range from $100k to over $10 million. While not accessible to average investors, those who qualify can gain exposure to exclusive investment strategies run directly by BlackRock’s investment professionals.
BlackRock offers a wide variety of funds and ETFs that can be accessed directly by individuals investors. Purchasing their ETFs through brokerage accounts provides easy access but higher minimums are required for mutual funds purchased directly. Institutional shares should be considered by eligible large investors to benefit from lower costs. BlackRock’s private funds offer exclusive alternatives only available to accredited high-net-worth individuals.