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Investors Pile Into ETFs at Record Pace Despite Market Turmoil - WSJ

1. U.S. ETFs saw record $437 billion inflows this year amidst volatility. 2. Vanguard’s S&P 500 ETF (VOO) became the largest ETF with $65 billion inflows. 3. Investors view selloffs as buying opportunities, boosting ETF demand. 4. BlackRock and Vanguard benefit from cash reallocations from money-market funds. 5. Active ETFs are gaining popularity, capturing 30% of new assets this year.

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FAQ

Why Bullish?

Increasing ETF inflows often lead to higher asset management fees for BLK, similar to trends in previous record inflow years.

How important is it?

The article highlights significant trends impacting ETF management firms like BlackRock, directly correlating with BLK’s business.

Why Short Term?

Current investor behavior indicates immediate demand for ETFs, likely enhancing BlackRock's profits shortly.

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