Fact check: People just don’t understand finance and company ownership structures. BlackRock simply manages the assets of its investors through its ETFs. They don’t directly own the shares.

1. Summary of the results

The original statement is partially correct but oversimplifies a complex financial structure. BlackRock indeed manages assets through ETFs rather than directly owning shares, with approximately $10 trillion in assets under management as of 2023 ^[1]. The company explicitly states "The money we manage is not our own. It belongs to the individuals and organizations representing more than 120 million people" ^[1]. This is further evidenced by BlackRock's own market capitalization of $118 billion, which is significantly smaller than the $10.5 trillion in investor-owned stocks it manages ^[2].

2. Missing context/alternative viewpoints

Several crucial pieces of context are missing from the original statement:

• BlackRock's massive scale and influence: The company managed $9.101 trillion in assets in 2023 and faces criticism for having significant influence over globally listed companies due to its widespread investments ^[3].
• Market concentration: BlackRock, Vanguard, and State Street collectively control 74.3% of the equity ETF market ^[2], suggesting significant market power despite not directly owning the assets.
• Complex ETF structures: ETFs can be either physical (holding actual assets) or synthetic (using derivatives), making the ownership structure more complex than simply "not directly owning shares" ^[4].
• Diverse client base: BlackRock manages assets for various entities including pensions, sovereign wealth funds, insurance companies, and individual investors ^[5].

3. Potential misinformation/bias in the original statement

The statement's dismissive tone ("People just don't understand") oversimplifies important nuances:

• While technically correct about direct ownership, it downplays BlackRock's influence: Despite being "passive shareholders" ^[1], BlackRock is listed as a shareholder of record for major companies like Apple and Amazon ^[1].
• The statement benefits large asset managers by minimizing concerns about their market concentration and influence. While BlackRock and Vanguard may not seek to control companies directly ^[1], their massive voting power and market presence warrant public scrutiny.
• The distinction between ownership and control is more complex than suggested, as BlackRock charges management fees and makes voting decisions for these vast holdings ^[5], creating significant indirect influence despite not having direct ownership.