Global ETF Market Facts: 3 Things To Know From Q1 2024

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imaginima By Samara Cohen Three things to know from U.S. ETF markets in Q1 2024 Assets in U.S.-listed exchange traded funds (ETFs) have grown over the last five years, but ETFs still represent a ...

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as a percentage of total equity volumes slightly dipped to 28.1% due to elevated single stock equity trading.2  Individual investors in the U.S. continued to participate in the ETF market, with individual investors’ trading volumes in ETFs and ETF options remaining in line with Q4 2023, while individual investor ETFs assets reached nearly $1.4 trillion and 19% of all U.S.-listed ETF assets, the most on record.3   U.S.-Listed ETF Market Size As of Q1 2024, ETFs represent 13% of equity and 2.8% of fixed income assets in the U.S. (compared to 10.3% of equities and 2% of fixed income in 2019). Despite U.S. ETF assets nearly doubling from 2019 to the end of Q1 2024, ETFs are still just a fraction of financial markets (Figures 1 and 2).  Chart description: Stacked column charts showing the size of equity and fixed income ETF assets under management in comparison to the total equity market capitalization and total debt outstanding in the U.S. This chart shows that while ETFs represent a large dollar amount of assets, that amount is still small in comparison to both the equity and fixed income markets. U.S.-Lited ETF Trading Volumes In the first quarter of 2024, trading volumes for the U.S. equity market (including single stocks, ETFs, and depository receipts) and U.S. ETFs were $37.9 trillion and $10.6 trillion, respectively. This means that U.S. ETFs accounted for 28.1% of the total U.S. composite volume in the secondary market over the quarter. This was slightly lower than in Q4 2023 due to higher single stock equity volumes, likely driven by more micro-driven trading, as certain equity and bond correlations fell during the first quarter (Figure 3).12  Chart description: Line chart showing total quarterly equity volumes and ETF trading as a percentage of overall equity market trading volumes in the U.S. Equity volumes includes stock and ETF volumes. This chart shows that ETF trading volume as a percentage of the total equity trading volume has remained elevated and over 25% since the beginning of 2022. Most U.S.-listed ETF Trading Activity Occurs In The Secondary Market Most ETF trading activity occurs in the secondary market, where ETF shares change hands between buyers and sellers. When demand cannot be met in the secondary market, large institutions (known as “authorized participants”) can transact with ETF issuers to create or redeem ETF shares in a separate, “primary” market. Generally, the higher the ratio of secondary market activity to primary market activity, the better the market quality. This is because a high ratio suggests that ETF trading is being efficiently processed on exchange with minimal market impact (i.e., shares of underlying securities do not need to be bought or sold to adjust for changes in investor demand). From 2019 to 2023, the ratio of secondary market activity to primary market activity in the U.S. remained above $7:1, peaking at $10:1 in 2022. This means that for every $7 of ETFs traded, only $1 resulted in trading activity in the underlying securities (Figure 4). In the first quarter of 2024, the ratio of secondary market activity to primary market activity in the U.S. was lower than the prior quarter at roughly $7:1 ($10.6 trillion in secondary activity and $1.5 trillion in primary activity) due to a greater than 10% increase in primary market activity over this period, primarily driven from equity ETFs.14  Chart description: Column chart showing the amount of ETF trading in the secondary market compared to the amount of primary market activity in the U.S. The amount of secondary market activity is far greater than primary activity, which means that most ETF trading takes place on an exchange between buyers and sellers and does not impact the underlying securities of the ETF. U.S.-Listed ETF Secondary Market Trading Stats In the first quarter of 2024, average daily volumes (ADV) in U.S.-listed ETFs was $174.6 billion, up from $165.8 billion in Q4 2023. There was an uptick in equity ETF trading, which contributed over 80% of total ADV, while fixed income ETF volumes were slightly lower over the same period (Figure 5). ADV for U.S.-listed iShares ETFs was $46.3 billion, up from an average of $43.8 billion in Q4 2023. This represented nearly 27% of total U.S.-listed ETF ADV. U.S.-listed iShares equity ETFs traded $27.8 billion in ADV, roughly 20% of total equity ETF ADV, while U.S.-listed iShares fixed income ETFs had an ADV of $16.5 billion and represented 65% of total fixed income ETF ADV.16 Bid-ask spreads (a component of trading costs for investors), are impacted by factors such as liquidity, volatility, and the efficiency of the ETF ecosystem, and tighter bid-ask spreads are generally indicative of strong ETF market quality. In Q1 2024, bid-ask spreads in U.S.-listed ETFs were tighter across all ETFs at 22.3 basis points (BPS) compared with 23.4 bps in Q4 2023. This was driven by spread tightening across both equity and fixed income ETFs. (Figure 6). Bid-ask spreads for U.S.-listed iShares ETFs were tighter than the industry average in Q1 2024, with an average bid-ask spread of 11 bps (12.3 bps for iShares equity ETFs and 8.8 bps for iShares fixed income ETFs).17  Chart description: Column chart showing the average daily volume (ADV) of total U.S.-listed ETF trading, in addition to ADV for U.S.-listed equity and fixed income ETFs, in Q1 2024. Volumes increased quarter-over-quarter led by a pickup in U.S.-listed equity ETFs. Total represents additional asset classes in addition to equity and fixed income.   Chart description: Column chart showing the average bid-ask spread (a component of an ETF’s trading cost) for U.S.-listed ETFs, including for both equity and fixed-income ETFs. Bid-ask spreads tightened in Q1 2024 for U.S.-listed ETFs, across both equity and fixed income, compared with Q4 2023. Total represents additional asset classes in addition to equity and fixed income. ETF Flows Typically Have Minimal Impact On Underlying Stocks Investors can assess the impact of equity ETFs’ primary market activity on the prices of underlying stocks through a metric called “imputed flow.” This metric estimates the proportion of all stock trading that results from ETF creations or redemptions; meaning, imputed flow is an approximation for how much stock trading is generated by ETF inflows and outflows. The impact is typically modest. Between March 2023 and March 2024, on average, only 5.5% of monthly trading volume in U.S. equities, represented by the constituents included in the MSCI USA Investable Market Index, has been attributable to ETF primary activity (Figure 7).  Chart description: Line chart showing both the total and average imputed flow in the U.S. Imputed flow is an estimation of how stock trading is generated by ETF inflows and outflows. This chart shows that imputed flow was below 5.5%, on average, in the past year. Imputed flow can also be analyzed at an individual stock level, which is useful because there is often misconceptions that ETF trading activity has an outsized impact in single stocks. Even in stocks that are widely held across ETFs, ETF creation and redemption activity often represents only a small portion of that stock’s total trading volume. As an example, from March 2023 through March 2024, ETF creation and redemption activity accounted for just 1.3% of the total trading volume in Nvidia (NVDA) - one of the largest ETF holdings, based on its representation and weight in various equity indexes—on average (Figure 8).  Chart description: Line chart showing both the total and average imputed flow of ETF primary market activity for NVIDIA as a percentage of it’s total secondary market volume. Imputed flow is an estimation of how stock trading is generated by ETF inflows and outflows. The chart shows that imputed flow was just 1.3%, on average, in the past year. U.S. Individual Investors Continue To Trade ETFs The number of individual investors—those who invest their own money to save for retirement or meet other financial goals—participating in financial markets has grown significantly in recent years.22 As a result, trading by individual investors in U.S.-listed ETFs has also increased, with trading volumes remaining elevated since 2020 (Figure 9). We believe individual investors’ increased use of ETFs has been driven by a few key factors: an industry shift to commission-free trading, improved digital experiences on direct platforms, and investor empowerment stemming from greater access to financial education through social media and other forums.  Chart description: Bar chart showing the growth in yearly volumes of individual investor ETF trading, measured in $ trillions. ETF volume is calculated by multiplying the number of ETF shares traded by the price of each share. U.S. Individual Investor ETF Activity Here are some notable takeaways around individual investors’ use of ETFs in Q1 2024 versus Q4 2023:   Individual investors’ ETF investments are increasing. Individual investors’ assets in ETFs have steadily increased over the last five years, from under $500 billion in 2019 to nearly $1.4 trillion the first two months of 2024. At the same time, individual investors’ assets invested in ETFs as a percentage of total ETF AUM is the highest on record, at 19% of total ETF AUM in the U.S. (Figure 10).   Trading in ETFs by individual investors remained steady. Trading activity in ETFs by individual investors represented 14% of all ETF trading in the first two months of Q1 2024, slightly below the 15% in Q4 2023.24   Individual investors increased their use of iShares ETFs. Trading activity in iShares and BlackRock ETFs by individual investors represented 20% of all ETF trading activity by individual investors in the first two months of Q1 2024, up from 19% in Q4 2023.25   Individual investors continue to trade ETF options. Individual investors drove 22% of all ETF options activity in Q1, a slightly lower percentage than in Q4 2023.Use of zero days to expiration (0DTE) options, which have become often-used investment tools among individual investors, continued over the period.26    Chart description: Bar chart showing the growth in assets under management (AUM) of individual investors in U.S.-listed ETFs, measured in $ billions. Line chart showing the percentage of total U.S.-listed ETFs assets represented by individual investors, which reached 19% in February 2024. Three Things To Know From Europe Etf Markets In Q1 2024  The size of exchange traded funds (ETFs) in European financial markets has grown over the last few years, particularly in equity where they now represent over 9% of European equities.28  European ETF volumes increased in Q1 led by an increase in equity ETF volumes, from the prior quarter and 2023, and ETFs represented 13.3% of total equity trading.29  Bid-ask spreads for European-listed ETFs continued to remain tighter than historical averages, with Q1 2024 averages at 26.5 bps which is 3.5 bps tighter than 2023 levels, while spreads on iShares ETFs were 50% tighter than the industry on average.30   Europe ETF Market Size ETFs represented 9.3% of equity assets in Europe and 1.8% of fixed income assets in Europe in Q1 2024. These percentages have increased over the last five years (from 5.5% of equities and 1.4% of fixed income in 2019). European equity ETFs have been a notable driver of this growth, with AUM increasing over $600 billion in this timeframe led by growth products offering exposure to U.S. and broad equity markets (Figures 11-12).  Chart description: Stacked column charts showing the size of equity and fixed income ETF assets under management in comparison to the total equity market capitalization and total debt outstanding in Europe. This chart shows that while ETFs represent a large dollar amount of assets, that amount is still small in comparison to both the equity and fixed income markets.  Europe ETF Trading Volumes In the first quarter of 2024, trading volumes for European equity markets (shares, ETFs, and depository receipts) and European ETFs were $5.9 trillion and $782.9 billion, respectively. European ETFs accounted for 13.3% of the total European composite volume in the secondary market over the quarter, slightly lower than 13.6% in Q4 2023.39 European ETFs have increased as a percentage of total European equity volume over the past two years. Lowering barriers to access for ETF investing through digital distribution and market structure enhancements, like a consolidated tape, could further improve ETF usage in the region (Figure 13).  Chart description: Line chart showing total quarterly equity volumes and ETF trading as a percentage of overall equity market trading volumes in Europe. Equity volumes includes stock and ETF volumes. This chart shows that ETF trading volume as a percentage of the total equity trading volume has slightly decreased to 13.3% in Q1 2024. European ETF Market Impact From 2019 to 2023, the ratio of ETF secondary market activity to primary market activity in Europe has remained at roughly 2:1. This means that for every $2 of ETFs traded, only $1 resulted in trading activity in the underlying securities. This figure is lower in Europe than in the U.S. as secondary market trading is fragmented in Europe, and there is therefore a higher dependency on primary market activity (Figure 14). In the first quarter of 2024, the ratio of secondary market activity to primary market activity in Europe was slightly over 2:1 ($782 billion in secondary market activity and $331 billion in primary market activity), slightly higher than the Q4 2023 levels, led by a pickup in secondary volumes related to equity ETFs.41  Chart description: Column chart showing the amount of ETF trading in the secondary market compared to the amount of primary market activity in Europe. The amount of secondary market activity is greater than primary activity, which means that most ETF trading takes place on an exchange between buyers and sellers and does not impact the underlying securities of the ETF. However, this ratio is significantly lower in Europe than it is for the U.S. European ETF Secondary Market Trading Stats In the first quarter of 2024, ADV in European-listed ETFs was $11.3 billion, up from $10.3 billion in Q4 2023. Similar to the U.S., there was an elevated pick up in trading among equity ETFs, which contributed over 62% of total ADV, while fixed income ETF volumes were also slightly higher in Q1 2024 compared with Q4 2023 (Figure 15). For Q1 2024, ADV for European-listed iShares ETFs was $5.3 billion, up from an average of $4.7 billion in Q4 2023, and represented 47% of total European-listed ETF trading. In addition, ADV for iShares equity ETFs was $2.8 billion, roughly 40% of total European-listed equity ETF ADV, while iShares fixed income ETFs had an ADV of $2.5 billion and represented 64% of total European-listed fixed income ETF ADV.43 In Q1 2024, bid-ask spreads in European-listed ETFs were tighter than the prior quarter at 26.5 bps (compared with 28.2 bps in Q4 2023). This was driven by tightening spreads across both equity and fixed income ETFs (Figure 16). Bid-ask spreads for European-listed iShares ETFs remained tighter than the industry average in Q1 2024. European-listed iShares ETFs had total average bid-ask spreads of 12.6 bps (12.9 bps for equity ETFs and 11.6 bps for fixed income ETFs).44  Chart description: Column chart showing the average daily volume (ADV) of total European-listed ETF trading, in addition to ADV for European-listed equity and fixed income ETFs, in Q1 2024. Volumes increased quarter-over-quarter led by a pickup in European-listed equity ETFs. Total represents additional asset classes in addition to equity and fixed income.  Chart description: Column chart showing the average bid-ask spread (a component of an ETF’s trading cost) for European-listed ETFs, including for both equity and fixed income ETFs. Bid-ask spreads tightened in Q1 2024 for European-listed ETFs, across both equity and fixed income, compared with Q4 2023. Total represents additional asset classes in addition to equity and fixed income. European ETF Imputed Flow We also assess the imputed flow on European markets, and compared to the U.S., the impact is even more modest for European equities. From March 2023 through March 2024, approximately 2.1% of trading volume in European equities, represented by the constituents included in the MSCI Europe Investable Market Index, was attributable to ETF activity (Figure 17).  Chart description: Line charts showing both the total and average imputed flow in Europe. Imputed flow is an estimation of how stock trading is generated by ETF inflows and outflows. This chart shows that imputed flow was approximately 2.1%, on average, in the past year. The Individual Investor ETF Landscape In Europe The same industry shifts that are empowering individual investor access in the U.S., like the expansion of direct brokerage platforms and improved digital experiences, are starting to take hold across Europe as well. A key area of focus for European individual investors is ETF savings plans. An ETF savings plan is a monthly regular investment of a fixed amount into a single ETF or selection of ETFs, purchased by individual investors through a brokerage’s online platform. Industry estimates suggest European individual investors will increase their holdings of ETFs by more than three times by 2028, reaching €650 billion. Over this period, the total number of ETF savings plans are estimated to increase by over four times, with 32 million individuals investing up to $64 billion Euros combined.48 We believe the revolution of ETF savings plans has just begun. A key innovation facilitated by online banks and brokers in Europe is allowing investors the ability to buy and sell any amount of ETF shares in these savings plans, irrespective of the price of the ETF. With this development, individual investors can now transact in “fractional” shares and access the benefits of ETF markets at their chosen investment budget, for as low as €1. Three Things To Know From APAC ETF Markets In Q1 2024  Assets invested in ETFs in Asia-Pacific financial markets have grown over the last few years, with assets in equity and fixed income ETFs nearly doubling to 5% of equity assets and 0.5% of APAC debt outstanding, respectively.49  APAC ETF volumes increased in Q12024 versus the prior quarter, led by a sharp uptick in equity ETF volumes; ETFs accounted for nearly 14% of total equity trading.50  Bid-ask spreads for APAC-listed ETFs remained tighter than historical averages, with Q1 2024 averages narrowing to 21.3 bps, lower than Q4 2023.51   APAC ETF Market Size ETFs represented 5% of equity assets in Asia-Pacific and 0.5% of fixed income assets in Q1 2024. These percentages have increased over the last five years (compared to 2.8% of equities and 0.2% of fixed income in 2019) as ETF AUM in the region has nearly doubled due to market structure and regulatory reforms, along with more individual investor accessibility. APAC is now the fastest growing region for ETF assets (Figures 18-19).  Chart description: Stacked column charts showing the size of equity and fixed income ETF assets under management in comparison to the total equity market capitalization and total debt outstanding in Asia-Pacific. This chart shows that while ETFs represent a large dollar amount of assets, that amount is still small in comparison to both the equity and fixed income markets. APAC ETF Trading Volumes In the first quarter of 2024, trading volumes for Asia-Pacific equity markets (shares, ETFs, and depository receipts) and Asia-Pacific ETFs were $9.6 trillion and $1.3 trillion, respectively. ETFs accounted for 13.7% of the total Asia-Pacific composite volume in the secondary market over the quarter, slightly higher than the Q4 2023 figure.60 Like other regions, APAC-listed ETFs have become an increasingly larger percentage of the total Asia-Pacific equity market, with ETFs as a percentage of the total equity volume nearly doubling since 2019 (Figure 20).  Chart description: Line chart showing total quarterly equity volumes and ETF trading as a percentage of overall equity market trading volumes in Asia-Pacific. Equity volumes includes stock and ETF volumes. This chart shows that ETF trading volume as a percentage of the total equity trading volume has increased to over 13.7% in Q1 2024. APAC ETF Market Impact From 2019 to 2023 the ratio of secondary market activity to primary market activity in Asia increased from roughly 2:1 to nearly 5:1. This means that for every $5 of ETFs traded, only $1 resulted in trading activity in the underlying securities. While primary market activity levels are similar for Europe and Asia-Pacific, there is now considerably more secondary market trading in APAC, which results in a higher ratio (Figure 21). In the first quarter of 2024, the ratio of secondary market activity to primary market activity in Asia-Pacific was 4:1 ($1.31 trillion in secondary market activity and $313 billion in primary market activity), slightly below Q4 2023 levels, due to a 29% increase in primary market activity over that period.62  Chart description: Column chart showing the amount of ETF trading in the secondary market compared to the amount of primary market activity in Asia-Pacific. The amount of secondary market activity is greater than primary activity, which means that most ETF trading takes place on an exchange between buyers and sellers and does not impact the underlying securities of the ETF. This ratio is higher than in Europe, but lower than the U.S. APAC ETF Secondary Market Trading Stats In the first quarter of 2024, average daily trading volumes in Asia-Pacific-listed ETFs was $22.7 billion, up from $19.2 billion in Q4 2023. Similar to both the U.S. and Europe, there was an elevated pick up in trading among equity ETFs, which contributed over 77% of total ADV, while fixed income ETF volumes were slightly lower in Q1 2024 compared with Q4 2023 (Figure 22). The iShares APAC ETF franchise is smaller, and newer, than its U.S. and European counterparts, which means ADV of iShares ETFs only represents a smaller amount of total APAC ETF ADV ($0.1 billion). However, as our footprint expands in the region, we will seek to drive trading volumes in our products.64 It’s also important to note that a significant portion (roughly 13% in Q1 2024) of APAC ETF ADV is driven by levered ETP trading, and BlackRock does not offer these products.65 In Q1 2024, bid-ask spreads in Asia-Pacific-listed ETFs were tighter across all ETFs at 21.3 bps, compared with 21.9 bps in Q4 2023. This was driven by tightening across both equity and fixed income ETFs (Figure 23). Bid-ask spreads for Asia-Pacific-listed iShares ETFs also remained tighter than the industry in Q1 2024. Asia-Pacific-listed iShares ETFs had average bid-ask spreads of 16.5 bps (18.5 bps for equity ETFs and 12.6 bps for fixed income ETFs). While only representing a small fraction of ETF ADV, the iShares APAC ETF franchise did deliver strong market quality through bid-ask spreads.66  Chart description: Column chart showing the average daily volume (ADV) of total APAC-listed ETF trading, in addition to ADV for APAC-listed equity and fixed income ETFs, in Q1 2024. Volumes increased quarter-over-quarter led by a pickup in APAC-listed equity ETFs while there was a decline in fixed income ETF ADV. Total represents additional asset classes in addition to equity and fixed income.  Chart description: Column chart showing the average bid-ask spread (a component of an ETF’s trading cost) for APAC-listed ETFs, including for both equity and fixed income ETFs. Bid-ask spreads tightened in Q1 2024 for APAC-listed ETFs, across both equity and fixed income, compared with Q4 2023. Total represents additional asset classes in addition to equity and fixed income. APAC ETF Imputed Flow Imputed flow in APAC is the lowest across all regions. From March 2023 through March 2024, approximately 1.4% of trading volume in APAC equities, represented by the constituents included in the MSCI All Country Asia Investable Market Index, was attributable to ETF activity (Figure 24).  Chart description: Line charts showing both the total and average imputed flow in Asia-Pacific. Imputed flow is an estimation of how stock trading is generated by ETF inflows and outflows. This chart shows that imputed flow was approximately 1.4%, on average, in the past year. The Individual Investor Landscape In APAC Similar to Europe, individual investor participation in APAC remains lower than in the U.S., with adoption widely varying across countries, with certain countries like Korea offering investors access to more-liquid U.S. ETFs.70 However, many efforts are being put forth by both policymakers and market participants to encourage ETF adoption and help investors achieve their financial goals. In Japan, the Nippon Individual Savings Account (NISA) is a tax-exempt scheme for Japanese individual investors. The scheme exempts the 20% tax on income and capital gains from the sale of stocks and investment funds. The Japanese Government recently announced the expansion of NISA schemes, which aims to double the total number of NISA accounts from 17 million to 34 million and double the amount of NISA assets from $186 billion to $372 billion in five years. The expansion aims to accelerate the shift of individual investors using traditional savings accounts towards longer-term investments in Japan and presents an opportunity to create tailwinds for the ETF industry.71 In certain countries, like Taiwan, individual investor usage of ETFs is significant. For instance, Taiwanese individual investors are showing demand for dividend-paying products. Two new dividend ETFs in March 2024 have already raised over $7 billion in assets. This brings the year-to-date inflows to equity ETFs to almost $11 billion, more than half of last year’s total flows.72 1See Figures 1 and 2. 2As of March 31, 2024. Source: Bloomberg, BlackRock. 3As of March 31, 2024. Source: Options Clearing Corporation (OCC), BlackRock analysis of SEC Rule 605 data, Broadridge. ETF option volume attributable to individual investors is based on orders of less than 11 contracts and excludes market maker volumes. 4This reflects the size of the U.S.-listed equity ETF market. As of December 31, 2019. Source: BlackRock, Markit. 5This reflects the size of the U.S. equity market (ex- ETFs). As of December 31, 2019. Equity (ex-ETFs) represented by the market capitalization of the Russell 3000 Index. Source: Bloomberg. 6This reflects the size of the U.S.-listed equity ETF market. As of March 31, 2024. Source: BlackRock, Markit. 7This reflects the size of the U.S. equity market (ex- ETFs). As of March 31, 2024. Equity (ex-ETFs) represented by the market capitalization of the Russell 3000 Index. Source: Bloomberg. 8This reflects the size of the U.S.-listed fixed income ETF market. As of December 31, 2019. Source: BlackRock, Markit. 9This reflects outstanding debt issued by the residents of the U.S. As of December 31, 2019. Source: Bank for International Settlements (BIS). 10This reflects the size of the U.S.-listed fixed income ETF market. As of March 31, 2024. Source: BlackRock, Markit. 11This reflects outstanding debt issued by the residents of the U.S. As of September 30, 2023. Source: Bank for International Settlements (BIS). 12As of March 31, 2024. Source: Bloomberg, BlackRock. 13As of March 31, 2024. Source: Bloomberg, BlackRock. 14Information on individual primary market orders may not be available for each ETF, globally. To approximate the scale of primary market activity for ETFs, we have used the absolute value of daily net flow for each ETF and aggregated it over the time period. This is only an approximation of ETFs’ primary market activity. As of March 31, 2024. Source: Bloomberg, BlackRock. 15Information on individual primary market orders may not be available for each ETF, globally. To approximate the scale of primary market activity for ETFs, we have used the absolute value of daily net flow for each ETF and aggregated it over the time period. This is only an approximation of ETFs’ primary market activity. As of December 31, 2023. Source: Bloomberg, BlackRock. 16As of March 31, 2024. Source: Bloomberg, BlackRock. 17A basis point (BP) is one hundredth of one percent. As of March 31, 2024. Source: TAQ Refinitiv. 18As of March 31, 2024. Source: Bloomberg, BlackRock. 19A basis point (BP) is one hundredth of one percent. As of March 31, 2024. Source: TAQ Refinitiv. 20As of March 31, 2024. Source: Bloomberg, BlackRock. 21As of March 31, 2024. Source: Bloomberg, BlackRock. 22For more information, see the 2023 Investment Company Fact Book. 23As of December 31, 2023. Source: BlackRock analysis of SEC Rule 605 data. 24As of February 29, 2024. Source: BlackRock analysis of SEC Rule 605 data. 25As of February 29, 2024. Source: BlackRock analysis of SEC Rule 605 data. 26As of March 31, 2023. Source: Options Clearing Corporation (OCC), BlackRock analysis of SEC Rule 605 data, Cboe. ETF option volume attributable to individual investors is based on orders of less than 11 contracts and excludes market maker volumes. A zero days to expiration (0DTE) option is an options contract set to expire at the end of the current trading day. This means that the value of a 0DTE option is entirely determined by the underlying asset's price movements on that day. All option contracts eventually become 0DTE options on expiration date. Recent data has shown that individual investors are seeking to trade shorter expiries. It is estimated that 30-40% of all 0DTE options volume was from individual investors. 27As of February 29, 2024. Source: BlackRock, Broadridge. 28See Figures 11 and 12. 29As of March 31, 2024. Source: BlackRock, big xyt. 30A basis point (BP) is one hundredth of one percent. As of March 31, 2024. Source: TAQ Refinitiv. 31This reflects the size of the Europe-listed equity ETF markets. As of December 31, 2019. Source: BlackRock, Markit. 32This reflects the size of the European equity markets (ex- ETFs). As of December 31, 2019. Equity (ex-ETFs) represented by the market capitalization of STOXX Europe 600 Index. Source: Bloomberg. 33This reflects the size of the Europe-listed equity ETF markets. As of March 31, 2024. Source: BlackRock, Markit 34This reflects the size of the European equity markets (ex- ETFs). As of March 31, 2024. Equity (ex-ETFs) represented by the market capitalization of STOXX Europe 600 Index. Source: Bloomberg. 35This reflects the size of the Europe-listed fixed income ETF market. As of December 31, 2019. Source: BlackRock, Markit. 36This reflects outstanding debt issued by the residents of the Euro area. As of December 31, 2019. Source: European Central Bank. 37This reflects the size of the Europe-listed fixed income ETF market. As of March 31, 2024. Source: BlackRock, Markit. 38This reflects outstanding debt issued by the residents of the Euro area. As of February 29, 2024. Source: European Central Bank. 39As of March 31, 2024. Source: BlackRock, big xyt. 40As of March 31, 2024. Source: BlackRock, big xyt. 41Information on individual primary market orders may not be available for each ETF, globally. To approximate the scale of primary market activity for ETFs, we have used the absolute value of daily net flow for each ETF and aggregated it over the time period. This is only an approximation of ETFs’ primary market activity. As of March 31, 2024. Source: Bloomberg, BlackRock, big xyt. 42Information on individual primary market orders may not be available for each ETF, globally. To approximate the scale of primary market activity for ETFs, we have used the absolute value of daily net flow for each ETF and aggregated it over the time period. This is only an approximation of ETFs’ primary market activity. As of December 31, 2023. Source: Bloomberg, BlackRock, big xyt. 43As of March 31, 2024. Source: BlackRock, big xyt. 44A basis point (BP) is one hundredth of one percent. As of March 31, 2024. Source: TAQ Refinitiv. 45As of March 31, 2024. Source: BlackRock, big xyt. 46A basis point (BP) is one hundredth of one percent. As of March 31, 2024. Source: TAQ Refinitiv. 47As of March 31, 2024. Source: Bloomberg, BlackRock. 48Source: ExtraETF “The ETF Savings Plan Market in Continental Europe.” As of October 12, 2023. 49See Figures 18 and 19. 50As of March 31, 2024. Source: Bloomberg, BlackRock. 51A basis point (BP) is one hundredth of one percent. As of March 31, 2024. Source: TAQ Refinitiv. 52This reflects the size of the Asia-Pacific-listed equity ETF markets. As of December 31, 2019. Source: BlackRock, Markit. 53This reflects the size of the Asia-Pacific equity markets (ex- ETFs). As of December 31, 2019. Equity (ex-ETFs) represented by the market capitalization of the MSCI Asia Pacific All Country Index. Source: Bloomberg. 54This reflects the size of the Asia-Pacific-listed equity ETF markets. As of March 31, 2024. Source: BlackRock, Markit. 55This reflects the size of the Asia-Pacific equity markets (ex- ETFs). As of March 31, 2024. Equity (ex-ETFs) represented by the market capitalization of the MSCI Asia Pacific All Country Index. Source: Bloomberg. 56This reflects the size of the Asia-Pacific-listed fixed income ETF market. As of December 31, 2019. Source: BlackRock, Markit. 57This reflects outstanding debt issued by the residents of Australia, China, Hong Kong, Japan, Malaysia, Philippines, Singapore, and Thailand. As of December 31, 2019. Source: Bank for International Settlements (BIS). 58This reflects the size of the Asia-Pacific-listed fixed income ETF market. As of March 31, 2024. Source: BlackRock, Markit. 59This reflects outstanding debt issued by the residents of Australia, China, Hong Kong, Japan, Malaysia, Philippines, Singapore, and Thailand. As of September 30, 2023. Source: Bank for International Settlements (BIS). 60As of March 31, 2024. Source: Bloomberg, BlackRock. 61As of March 31, 2024. Source: Bloomberg, BlackRock. 62Information on individual primary market orders may not be available for each ETF, globally. To approximate the scale of primary market activity for ETFs, we have used the absolute value of daily net flow for each ETF and aggregated it over the time period. This is only an approximation of ETFs’ primary market activity. As of March 31, 2024. Source: Bloomberg, BlackRock. 63Information on individual primary market orders may not be available for each ETF, globally. To approximate the scale of primary market activity for ETFs, we have used the absolute value of daily net flow for each ETF and aggregated it over the time period. This is only an approximation of ETFs’ primary market activity. As of December 31, 2023. Source: Bloomberg, BlackRock. 64As of March 31, 2024. Source: Bloomberg, BlackRock. 65As of March 31, 2024. Source: Bloomberg, BlackRock. 66A basis point (BP) is one hundredth of one percent. As of March 31, 2024. Source: TAQ Refinitiv. 67As of March 31, 2024. Source: Bloomberg, BlackRock. 68A basis point (BP) is one hundredth of one percent. As of March 31, 2024. Source: TAQ Refinitiv. 69As of March 31, 2024. Source: Bloomberg, BlackRock. 70Source: ETFGI “Korean retail investors continue to be active purchasers of overseas listed ETFs in January.” As of February 23, 2024. 71Source: Ignites Asia “Japan's expanded NISA scheme fuels 'binge shopping' for index funds.” As of February 8, 2024. 72Source: Tapei Times “Taiwan ETFs hit record NT$340bn.” As of March 19, 2024. 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 the iShares Fund and BlackRock Fund prospectus pages. 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 the value of debt securities. Credit risk refers to the possibility that the debt issuer will not be able to make principal and interest payments. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of \"Characteristics and Risks of Standardized Options.\" Copies of this document may be obtained from your broker, from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500, Chicago, IL 60606 (1-888-678-4667). The document contains information on options issued by The Options Clearing Corporation. The document discusses exchange traded options issued by The Options Clearing Corporation and is intended for educational purposes. No statement in the document should be construed as a recommendation to buy or sell a security or to provide investment advice. If you need further information, please feel free to call the Options Industry Council Helpline. They will be able to provide you with balanced options education and tools to assist you with your iShares options questions and trading. The Options Industry Council Helpline phone number is 1-888-Options (1-888-678-4667) and its website is www.888options.com. This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. This material is provided for educational purposes only and is not intended to constitute investment advice or an investment recommendation within the meaning of federal, state or local law. You are solely responsible for evaluating and acting upon the education and information contained in this material. BlackRock will not be liable for direct or incidental loss resulting from applying any of the information obtained from these materials or from any other source mentioned. BlackRock does not render any legal, tax or accounting advice and the education and information contained in this material should not be construed as such. Please consult with a qualified professional for these types of advice. Shares of ETFs may be bought and sold throughout the day on the exchange through any brokerage account. Shares are not individually redeemable from an ETF, however, shares may be redeemed directly from an ETF by Authorized Participants, in very large creation/redemption units. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained. Buying and selling shares of ETFs may result in brokerage commissions. The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, \"BlackRock\"). © 2024 BlackRock, Inc or its affiliates. All Rights Reserved. BLACKROCK, iSHARES, iBONDS, LIFEPATH, ALADDIN and the iShares Core Graphic are trademarks of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners. iCRMH0424U/S-3507163 Not FDIC Insured • May Lose Value • No Bank Guarantee This post originally appeared on the iShares Market Insights.  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