BlackRock Cuts Equity Overweight to 1%, Shifts $12B into S&P 500 ETF
BLK•BlackRock reduced its equity overweight from 3% to 1% across its $220 billion model-portfolio business as the S&P 500 hit record highs after a generational earnings season. The move triggered over $12 billion into the iShares Core S&P 500 ETF and $10 billion exiting factor and thematic ETFs.
1. Equity Allocation Adjustment
BlackRock trimmed its equity overweight position from 3% to 1% across its $220 billion model-portfolio business as US stocks reached record highs following a generational earnings season.
2. ETF Flow Impact
The shift triggered over $12 billion of inflows into the iShares Core S&P 500 ETF and a record haul into the iShares International Country Rotation Active ETF, while factor-focused and thematic funds saw $10 billion in combined outflows.
3. Strategy Outlook
Portfolio managers cited booming productivity, strong corporate profits and AI adoption as drivers, but warned that markets have priced in positive indicators and may face a narrower path to avoiding potential risks.
