This morning The Financial Times reported that the world’s largest money management firm, BlackRock (NYSE:BLK), doubled its earnings in the fourth quarter of 2010.
Investors may remember BlackRock’s takeover of another giant firm -- Barclays in late 2009. One of the biggest areas of growth was in exchange traded funds (ETFs).
That’s because the Barclay's acquisition gave BlackRock ownership of the iShares group of ETFs, which has over 216 separate funds.
Each one of those 216 ETFs has an expense ratio between 0.2% and 0.89%.
BlackRock launched 29 new iShares ETFs in 2010, which helped them to more than triple their profits from ETF management.
It’s no surprise that these huge firms launch new ETFs as fast as they can - it’s an easy way to collect money from regular investors without actually providing any value.
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