BlackRock financial advisors: what are the pros & cons?
BlackRock is a multinational US-based financial advisory firm that offers a wide variety of investment-focused financial services - find out if they are the right fit for your needs.
Summary
With its headquarters in New York, BlackRock has 78 offices in 38 countries and clients in 100 countries.
BlackRock has one of the largest AUMs in the world and offers a wide variety of financial services, including investment strategy and portfolio diversification.
BlackRock is known for its thorough research facilities, highly personalized financial strategies, and strong risk evaluation services.
Get matched with a financial advisor whose services align with your needs at Unbiased.
BlackRock: Who are they?
Established in 1988, BlackRock has grown to be a multinational investment-focused financial advisory firm serving clients worldwide.
Today, it is an extremely well-known firm that has gained multiple awards and recognition for its financial services, including being named one of America’s Most JUST Companies and receiving a perfect score for the 11th consecutive year in the Human Rights Campaign's Corporate Equality Index.
BlackRock is known for its thorough research facilities, highly personalized financial strategies, and strong risk evaluation services.
Assets Under Management:
$10.5 trillion
Fee:
0.09%-2.50%
Fee Structure:
Fee-based
Minimum Account Sizes:
$250,000 to $1 million
What does BlackRock do?
BlackRock provides people and organizations with a range of financial services. Their services are comprehensive, but their main focuses are investment strategy, diverse portfolio management, and various forms of personal and institutional financial planning.
BlackRock financial advisors are known for spending one-on-one time with clients to create the most effective financial strategy possible. They also focus on sustainable investing and the implementation of AI technology to enhance strategy development.
What are the pros and cons of BlackRock?
Like all firms, Blackrock’s financial management services have both pros and cons:
Pros
One-on-one customer service: Blackrock financial advisors focus on offering a personalized approach to each client’s needs that facilitates effective one-on-one attention.
Comprehensive strategy software: BlackRock uses an operational software program called Aladdin to handle client admin and has access to a range of data processing software for better strategy and risk assessment.
Highly respected in the industry: BlackRock has received numerous awards for its services over the years and has accumulated a high level of respect in the financial services industry.
Can accommodate individual and institutional clients: Whether you are an individual client or an entire company needing financial advice, BlackRock can provide it.
Cons
Complex fee structure: BlackRock’s fee structure is not straightforward. Different strategies and services come with unique payment structures that are negotiated upfront.
Limited financial planning services: BlackRock is not strong in general financial planning. They are more adept at managing investment strategies and portfolios.
Subpar customer service: As comprehensive as its customer service system is, BlackRock’s customer service is not always on par with that of other firms in the industry.
Commission clauses: In some cases, BlackRock financial advisors charge commissions for investing in certain assets, which can lead to a conflict of interest.
BlackRock: Financial services
As a financial advisory firm, BlackRock offers an array of financial management and strategy skills. However, its main services relate to portfolio and investment management. It also provides limited financial planning services for those who need them.
BlackRock's financial services are primarily related to investment strategy. They offer diverse portfolio development, manage both in-house and third-party managed accounts (SMAs) and create personalized investment strategies.
Essentially, BlackRock financial services can accommodate multi-asset, global equity, regular equity, fixed-income, and alternative strategy options.
BlackRock: Fees
BlackRock’s fees can vary significantly depending on the type of strategy, account size, and whether you're using a wrap, non-wrap, or separately managed account (SMA).
Here's how the costs break down:
1. Core portfolio strategies (wrap vs. non-wrap)
Wrap accounts, such as those under the Wrap Fee Schedule for Equity, Balanced, Retirement Journey, and WDP Strategies, include bundled services and incur higher upfront costs.
Non-wrap accounts, as defined in the Non-Wrap Fee Schedule for Equity and Balanced Investment Strategies, are unbundled and may be more efficient for larger portfolios.
| Portfolio value | Wrap fee | Non-wrap fee (equity/balanced) |
|---|---|---|
| Portfolio value | Wrap fee | Non-wrap fee (equity/balanced) |
| Up to $500K | 2.50% | – |
| $500K – $1M | 2.00% | – |
| $1M – $3M | 1.50% | 1.00% – 0.75% |
| $3M – $10M | 1.00% | 0.60% |
| $10M – $50M | 0.50% | 0.45% |
| Above $50M | Negotiable | Negotiable |
💡 Insight: BlackRock's wrap accounts cost more at lower tiers but offer streamlined management. For portfolios exceeding $3 million, non-wrap fees become significantly more cost-effective.
2. Fixed-income strategies (non-wrap & multi-style)
Fixed-income investors can choose between single-style portfolios and multi-strategy approaches.
Single-style options are listed under the Non-Wrap Fee Schedule for Single-Style Fixed-Income Investment Strategies, while multi-strategy options fall under the Non-Wrap Fee Schedule for Multi-Strategy Fixed-Income and Target Income Investment Strategies.
Multi-strategy portfolios typically incur higher costs but offer greater flexibility for income targeting and diversification.
| Portfolio size | Single-style fixed income | Multi-strategy/target income |
|---|---|---|
| Portfolio size | Single-style fixed income | Multi-strategy/target income |
| Up to $1M | 0.90% | 1.50% – 1.25% |
| $1M – $3M | 0.75% | 1.05% – 1.02% |
| $3M – $10M | 0.60% – 0.525% | 0.98% – 0.95% |
| $10M – $50M | 0.45% – 0.375% | – |
| Above $50M | Negotiable | Negotiable |
💡Tip: If you're income-focused and managing under $5 million, a multi-strategy approach may offer flexibility, at a cost. Over time, single-style becomes more efficient fee-wise.
3. Separately managed account (SMA) fees
BlackRock offers two SMA strategies — fixed-income and equity — with tiered fees that decrease as your investment grows.
Fixed-income SMA strategy
First $1,000,000: 0.35%
Next $2,000,000: 0.30%
Next $2,000,000: 0.25%
Next $5,000,000: 0.22%
Next $10,000,000: 0.20%
Over $20,000,000: 0.15%
💡 Ideal for conservative investors seeking customized bond ladders or yield management, with fees dropping sharply as portfolio size increases.
Equity SMA strategy
First $1,000,000: 0.65%
Next $2,000,000: 0.60%
Next $7,000,000: 0.45%
Next $15,000,000: 0.40%
Next $25,000,000: 0.35%
Over $50,000,000: 0.25%
💡 Suitable for high-net-worth individuals who want active equity management without the cost of full wrap services.
4. Flat-fee strategies
Some of BlackRock’s most specialized strategies operate on flat rates:
| Strategy | Flat annual fee |
|---|---|
| Strategy | Flat annual fee |
| Liability-driven fixed-income | 0.20% |
| Laddered fixed-income SMA | 0.10% |
💡These strategies are highly specialized. LDI is often used by pensions or institutions with known future liabilities.
BlackRock: Technology
BlackRock is a modern firm that is fully equipped to provide clients with all the necessary technology and software for financial strategy and planning.
The firm's main operating system is Aladdin, a software program aimed at streamlining client administration and communication.
Additionally, the firm uses state-of-the-art risk evaluation programs and probability calculators to help clients develop the most accurate investment strategies possible.
BlackRock security: Is it secure?
BlackRock’s security is impressive.
The firm protects customers’ data in accordance with the applicable privacy and data protection laws.
The technology they use is encrypted and secure, affording each client or institution they work with a high level of privacy and protection from all kinds of threats, both cyber and otherwise.
BlackRock: Customer service
BlackRock takes customer service seriously and aims to provide each client with the highest level of financial guidance and professionalism possible.
However, reviews indicate that BlackRock financial advisors are best suited to high-net-worth clients or larger institutions.
Personal, everyday financial planning is not their forte – the firm’s customer service is best received in more corporate environments, which is where their other services thrive.
Get expert financial advice
BlackRock financial advisors are part of a reputable, long-standing financial advisory firm that offers an impressive range of investment strategies and portfolio diversification services. However, they may not suit everyone’s needs, especially if they are not high-net-worth individuals.
Unbiased can help you find the financial advisor best suited to your needs to ensure you get expert financial advice tailored to your circumstances.
Frequently asked questions
How does Blackrock compare to other financial advisory companies?
We’ve compared BlackRock with other financial advisor companies. Find out more here:
Blackrock vs Fisher Investments
Blackrock vs Fidelity Investments
How are Fisher Investment Advisors paid?
Fisher Investment Advisors use a tiered fee structure based on the size of your portfolio, rather than earning commissions on trades. This aligns their interests with yours, as their compensation improves when your investments perform better.
What is the customer satisfaction of Fisher Investments?
In the 2023 client satisfaction survey, 95% of respondents rated Fisher Investments 401(k) Solutions as "Best-in-Class" for being easy to do business with. Overall client satisfaction was 96%, significantly higher than the industry benchmark of 58%.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased, producing content across a range of different sectors, including personal finance, retirement, and investing. She specializes in simplifying intricate financial terms into clear, engaging content tailored for both B2C and B2B audiences.