Group 1 - BlackRock Canada announces that the iShares Convertible Bond Index ETF is expected to experience higher than normal portfolio turnover due to changes in the FTSE Canada Convertible Bond Index composition [1] - The rebalance of the Index is scheduled for January 31, 2025, which may lead to increased transaction costs for the iShares ETF [1] - The iShares ETF is not expected to realize any net capital gains as a result of the upcoming rebalance [1] Group 2 - FTSE Global Debt Capital Markets Inc. announced changes to the sector classification schema for the Index, which will now follow the Refinitiv Business Classification [2] - The Index will also adhere to the holiday calendar published by the Toronto Stock Exchange [2] - FTSE published the official Index proforma on January 24, 2025, confirming the impact of these changes [2] Group 3 - iShares has over 20 years of experience and manages more than 1500 exchange-traded funds with US$4.2 trillion in assets under management as of December 31, 2024 [5] - iShares funds are managed by BlackRock Asset Management Canada Limited, leveraging BlackRock's portfolio and risk management expertise [5]

Core Insights - The article emphasizes the importance of dividend investing as a pathway to financial freedom, highlighting its accessibility and potential for steady income [1] Group 1: Investment Philosophy - The company combines financial expertise with value investing principles to create a strong financial foundation through dividend investing [1] - Dividend investing is presented as a straightforward method for individuals to work towards long-term wealth accumulation [1] Group 2: Professional Background - The company has extensive experience in mergers and acquisitions (M&A) and business valuation, having evaluated numerous businesses and facilitated buy-side and sell-side transactions [1] - Daily activities include financial modeling, conducting due diligence, negotiating deal terms, and engaging in numerous meetings [1] Group 3: Sector Focus - The company focuses on various sectors including technology, real estate, software, finance, and consumer staples, which are also the core of its investment portfolio [1]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers a wide range of sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] - Proactive has a presence in key finance and investing hubs with bureaus and studios located in major cities such as London, New York, and Sydney [2] Group 2 - The company emphasizes the use of technology to enhance workflows and improve content production [4] - Proactive employs automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Core Viewpoint - BlackRock CEO Larry Fink expressed concerns that President Trump's initiatives to stimulate private sector capital could inadvertently harm the stock market due to potential inflationary pressures [1][2]. Group 1: Economic Outlook - Fink is cautiously optimistic about the potential for significant growth if private capital is effectively utilized, but warns of inflation risks that may not be fully considered by the markets [2]. - The success of capital deployment in the private sector is crucial, with notable investments such as the Stargate joint venture, which involves a $100 billion immediate investment for AI infrastructure, potentially leading to a total of $500 billion [2]. Group 2: Inflation and Interest Rates - Fink highlighted the presence of substantial inflationary pressures that could lead to elevated interest rates, negatively impacting the equity market [3]. - There is a possibility that the 10-year Treasury yield could approach 5% or even 5.5% if inflation accelerates, which would significantly shock the equity market [3]. - The current benchmark 10-year note yield is at 4.62% [4].

Core Viewpoint - BlackRock and the state of Tennessee have reached a settlement regarding a lawsuit that claimed the firm downplayed the influence of environmental, social, and governance (ESG) proposals in its investment processes, marking a significant win for states opposing ESG initiatives [1][4]. Group 1: Settlement Details - The settlement requires BlackRock to enhance transparency, undergo regular audits, provide compliance training, cooperate with the attorney general, improve investor communications, and commit to prioritizing financial interests [3]. - Tennessee Attorney General Jonathan Skrmetti stated that the settlement ensures that retirement funds for Tennesseans will not support ideologies they oppose [2]. - BlackRock expressed satisfaction with the resolution, emphasizing its commitment to acting in the best interests of clients and increasing transparency about its practices [5]. Group 2: Legal Context and Implications - The lawsuit, filed in 2023, accused BlackRock of making misleading statements regarding the extent to which ESG proposals influenced its investments, a claim that BlackRock has dismissed as inaccurate [3][9]. - The settlement does not involve any penalties, fines, or admissions of wrongdoing by BlackRock [5]. - This settlement may set a precedent for other ongoing legal challenges against ESG investing, particularly in the context of a coalition of states that have accused major asset managers of colluding to influence coal production negatively [8].

Group 1: Goldman Sachs Performance - Goldman Sachs reported a significant EPS surprise of 48%, with Q4 earnings at $4.11 billion or $11.95 per share, exceeding expectations of $8.07 [2] - Q4 sales for Goldman reached $13.86 billion, which is 13% above estimates of $12.26 billion, and sales increased 22% from $11.31 billion a year ago [3] - For the fiscal year 2024, Goldman's total sales increased by 16% to $53.51 billion, and annual earnings soared over 70% to $14.28 billion or $40.54 per share [7] Group 2: BlackRock Performance - BlackRock's Q4 EPS was $11.93, surpassing expectations of $11.27, with sales of $5.67 billion, which was 2% better than expected [4] - Year-over-year, BlackRock's Q4 earnings and sales increased over 20%, with AUM hitting a record $11.6 trillion due to quarterly net inflows of $281 billion [5][8] - For the fiscal year, BlackRock's total sales rose 14% to $20.41 billion, and annual earnings increased over 15% to $6.37 billion or $43.61 per share [8] Group 3: Market Comparison and Valuation - Over the past year, Goldman's stock has risen by 62%, outperforming BlackRock's 26% gain and the S&P 500's gains [9] - Goldman trades at a forward P/E of 13.9X, which is at a discount compared to BlackRock's 21.2X [11] - Goldman Sachs holds a Zacks Rank 2 (Buy), while BlackRock has a Zacks Rank 3 (Hold) [11]

Core Viewpoint - BlackRock's ETF chief believes that cryptocurrency deregulation under President-elect Donald Trump will significantly boost Bitcoin's performance, potentially leading to another historic year for the cryptocurrency [1]. Group 1: Bitcoin Performance and Market Trends - The iShares Bitcoin Trust (IBIT), managed by BlackRock, has seen a remarkable increase of 114% since its launch in January 2024 and is up nearly 8% year to date, coinciding with Bitcoin trading briefly above $100,000 [2]. - Despite the strong performance, BlackRock's ETF chief cautions that Bitcoin is a risky asset, and investors should be prepared for volatility, as a 15% movement is not considered significant in the context of Bitcoin [3]. Group 2: Regulatory Developments and Industry Initiatives - Progress is expected on the Financial Innovation and Technology for the 21st Century Act (FIT21), particularly regarding stable coins and definitions in taxonomy, which could further influence the cryptocurrency market [2]. - Calamos Investments is also entering the cryptocurrency space with plans to launch the world's first 100% downside protected Bitcoin ETF, set to debut shortly after Trump's inauguration [4].

Group 1 - Keefe, Bruyette & Woods analyst Aidan Hall raised the price forecast on BlackRock, Inc. to $1,180 from $1,160 while maintaining an Outperform rating [1] - BlackRock reported fourth-quarter results with revenue of $5.68 billion, exceeding the consensus of $5.53 billion, and adjusted EPS of $11.93, surpassing the consensus of $11.21 [1] - BLK shares responded positively to the results, outperforming peers and the broader market by more than 300 basis points [1] Group 2 - BlackRock is in the early phases of its transformation, with management optimistic about growth initiatives for 2025 [2] - Management highlighted ongoing initiatives to meet the growing demand for alternative investments in the retail channel, including a managed model partnership with Partners Group [2] Group 3 - Management expects core G&A growth in the mid-to-high single digits for 2025, with anticipated G&A expenses of $152.5 million from GIP and Preqin [3] - Core G&A is expected to grow 7.9% in 2025, excluding HPS [3] Group 4 - Management anticipates continued operating margin expansion, projecting an estimated 80bps margin improvement to 45.3% in 2025 [4] - Analyst adjusted EPS estimates slightly for FY25, 2025, and 2026 [4] Group 5 - Revisions reflect higher operating expenses, primarily from compensation and benefits, and amortization of intangibles, partially offset by higher total revenue [5] - Investors can gain exposure to BlackRock stock via Fidelity Disruptive Finance ETF and Spinnaker ETF Series Genter Capital International Dividend ETF [5]

Core Viewpoint - BlackRock, managing over $11.5 trillion in assets, is the world's largest investment company, with $3.5 trillion in ETFs through its iShares subsidiary, which offers over 1,400 ETFs, including the iShares Expanded Tech Sector ETF that has outperformed the S&P 500 since its inception [1][2][10]. Group 1: iShares Expanded Tech Sector ETF Performance - The iShares Expanded Tech Sector ETF, established in 2001, has delivered better annual returns than the S&P 500, with a compound annual return of 11% since inception [2][10]. - Over the last 10 years, the ETF's compound annual return accelerated to 20.2%, significantly outpacing the S&P 500's 13.7% annualized gains [11]. - The ETF's top 10 positions account for 55.2% of its total value, with Nvidia, Meta Platforms, and Apple being among the largest holdings [4][3]. Group 2: Key Holdings and Their Performance - The top 10 stocks in the ETF generated an average return of 65.5% in 2024, outperforming the S&P 500's 23% gain [4]. - Notable stock performances include Nvidia with a 171.2% price change, Broadcom at 107.7%, and Netflix at 83.07% [5]. - The ETF also holds other popular AI stocks like Advanced Micro Devices and Palantir Technologies, which contribute to its growth potential [9]. Group 3: Future Outlook - Nvidia is expected to perform well in 2025 due to increased demand for its new Blackwell GPUs, which are crucial for AI model development [6]. - Meta is anticipated to have a strong year with the release of its advanced Llama 4 large language model and new AI features across its platforms [7]. - Microsoft and Alphabet are expected to enhance their AI models and continue strong growth in their cloud computing segments, which could positively impact their stock prices [8]. Group 4: Economic Impact of AI - Analysts estimate that AI will add $15.7 trillion to the global economy by 2030, with significant contributions from companies within the ETF [13]. - Tech giants are projected to spend $1 trillion upgrading data centers over the next four years to support AI demand, benefiting companies in the ETF like Broadcom and AMD [12].

Core Insights - BlackRock (BLK) shares increased by 4% following the release of better-than-expected quarterly results, driven by record assets under management (AUM) [1][4] - The firm reported fourth-quarter adjusted earnings per share (EPS) of $11.93, marking a 23% year-over-year increase, with revenue also rising 23% to $5.68 billion, surpassing analyst consensus estimates [1][4] Group 1: Financial Performance - AUM surged 15% year-over-year to $11.55 trillion, with total net inflows nearly tripling to $281.4 billion [2][4] - Long-term net inflows contributed $200.7 billion, with $142.6 billion specifically allocated to exchange-traded funds (ETFs) [2] Group 2: Growth and Future Outlook - CEO Larry Fink highlighted that this marks the second consecutive quarter of record inflows for BlackRock, with client activity significantly increasing [3][4] - The company experienced 7% organic base fee growth and 12% growth in technology services annual contract value (ACV) [3] - Fink expressed optimism about entering 2025 with substantial growth and upside potential, indicating that this is just the beginning [3]