5 BlackRock alternatives: what are my options?
BlackRock faces intense competition from Vanguard, Edward Jones, Charles Schwab, Morgan Stanley, and State Street, with each offering unique specialties and investment strategies.
Summary
BlackRock is the worldwide leader in asset management, with a net worth of $125.38 billion as of August 2024.
Vanguard is the second-largest asset manager in the world, with total assets amounting to $2,717.50 billion.
Unbiased can help you get expert advice from a financial advisor to help you reach your goals.
Who is BlackRock?
BlackRock is the largest asset manager globally, with just under $10.5 trillion in assets under management (AUM).
Founded in 1988 by Larry Fink and seven partners, BlackRock has become the global leader in investment management, risk management, and advisory services. Its extensive range of offerings includes mutual funds, exchange-traded funds (ETFs), and retirement products.
BlackRock's flagship ETF, the iShares Core S&P 500 ETF (IVV), manages almost $500 billion in assets, making it one of the most popular options for investors to diversify their portfolios.
Who are BlackRock’s competitors?
Blackrock's competitors include several major firms in the asset management industry.
Some of its key competitors include Vanguard, Edward Jones, Charles Schwab, Morgan Stanley, and State Street.
| Company | Founded | Headquarters (HQ) | Assets Under Management (AUM) |
|---|---|---|---|
| Company | Founded | Headquarters (HQ) | Assets Under Management (AUM) |
| BlackRock | 1988 | NYC, NY | $10.5 trillion |
| Vanguard | 1975 | Malvern, PA | $9.3 trillion |
| Edward Jones | 1922 | St. Louis, MO | $2 trillion |
| Charles Schwab | 1971 | Westlake, TX | $7.38 trillion |
| Morgan Stanley | 1935 | NYC, NY | $1.19 trillion |
| State Street | 1792 | Boston, MA | $4.34 trillion |
5 alternatives to BlackRock
1. Vanguard
Vanguard is a prominent competitor of BlackRock, known for its unique client-owned structure and low-cost investment funds. Founded in 1975 by John Bogle, Vanguard is headquartered in Malvern, Pennsylvania. It operates globally with offices in Europe, Asia, and Australia.
Assets under management:
$7.2 trillion
Fee:
0.05%-0.3%
Fee structure:
Fee-based and fee-only
Minimum account sizes:
$50,000 (for a personal advisor)
As of May 2024, Vanguard had $9.3 trillion in AUM, just over a trillion US dollars behind BlackRock. Vanguard is a privately owned company specializing in index mutual funds and 86 listed ETFs, emphasizing low costs and investor returns. Its client-owned structure ensures that profits are returned to investors through lower fees, offering an attractive alternative to BlackRock.
2. Edward Jones
Edward Jones is a notable BlackRock alternative that focuses on personalized financial advice for individual investors and small businesses.
Assets under management:
$2 trillion
Fee:
0.5%-1.35%
Fee structure:
Fee-based
Minimum account sizes:
$5,000 or $25,000 depending on account type
Established in 1922, the firm's headquarters are in St. Louis, Missouri, and it operates over 15,000 branch offices across the United States and Canada.
Edward Jones is a private partnership with an estimated net revenue of over $14 billion in 2023. The 12-time Fortune 500 company offers tailored investment advice, retirement planning, and wealth management services.
By prioritizing personal relationships and community presence, Edward Jones stands out as a worthy competitor to BlackRock in providing individualized financial solutions.
3. Charles Schwab
Charles Schwab is another leading financial services company that competes with BlackRock through its comprehensive range of investment products and services.
Assets under management:
$7.38 trillion
Fee:
0.80% and decrease at higher asset levels
Fee structure:
Fee-based
Minimum account sizes:
$500,000
Founded in 1971, Charles Schwab is headquartered in Westlake, Texas, with additional offices nationwide. As of August 2024, Charles Schwab's net worth was over $112 billion.
Charles Schwab is a publicly traded company specializing in brokerage services, wealth management, and financial advisory. Its commitment to innovation and client-focused solutions makes it a formidable BlackRock competitor, offering diverse investment options and advanced trading platforms.
4. Morgan Stanley
Morgan Stanley is a global financial services giant and one of BlackRock's biggest competitors. It offers an array of investment banking, securities, and wealth management services.
Assets under management:
$1.19 trillion
Fee:
Annual advisory fees up to 2%, with additional platform and manager fees.
Fee structure:
Percentage of AUM, fixed fees for specific services, and commissions.
Minimum account sizes:
$5 million for Private Wealth clients; $5,000 for Access Investing.
Established in 1935, Morgan Stanley is headquartered in New York City and has offices in over 40 countries.
Morgan Stanley is a publicly traded company with a net worth of almost $156 billion as of August 2024. Its specialties include investment management, financial advisory, and capital markets, and it provides comprehensive financial solutions to institutional and retail clients.
5. State Street
State Street is another major competitor of BlackRock, known for its investment management and asset servicing expertise.
Assets under management:
$4.34 trillion
Fee:
Not explicitly stated
Fee structure:
Fee-based
Minimum account sizes:
The firm is the second-oldest in the United States, founded in 1792 as Union Bank. State Street's headquarters are at One Congress Street in Boston, Massachusetts, and the company operates in the Americas, Europe, Asia Pacific, the Middle East, and Africa.
As of August 2024, State Street's market cap stood at $24.21 billion.
State Street is a publicly traded company that specializes in managing institutional assets and offering investment management, research, and trading services. Its focus on institutional investors and innovative financial solutions position it as a significant BlackRock alternative in the global market.
Get expert financial advice
BlackRock is a leading asset manager but faces intense competition from other industry giants like Vanguard, Edward Jones, Charles Schwab, Morgan Stanley, and State Street. Each of these firms offers unique specialties and investment strategies, providing investors with various alternatives to BlackRock.
Unbiased will match you with an SEC-regulated financial advisor for expert advice so that you can make informed financial decisions.
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