BlackRock's IVV Is Down $7B in Flows This Year, and a Fee Cut Is Now on the Table
As seen on the 24/7 Wall St. homepage on September 22, 2026.
An $87 billion swing in IVV's usual annual haul is the kind of gap that forces a price response, and Bloomberg's ETF analyst says a fee cut is on the table. Cheaper S&P 500 exposure would be a win for holders and a margin hit for BlackRock.
New from me today on how BlackRock has an IVV problem and a fee cut could be in store.. If you look at the biggest ETF issuers all of them are in record territory except BlackRock, the gap almost entirely due to IVV which is -$7b YTD flows (normally it contributes $80b!). Now https://t.co/1HqEfcypZB
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BlackRock finds itself as the only major ETF issuer not sitting at record flows this year, and the culprit is almost entirely IVV, its S&P 500 index fund. The fund is running at negative $7 billion in year-to-date flows at a time when it would typically be a major contributor.
Bloomberg ETF analyst Eric Balchunas flagged the divergence on September 22, noting that every other large ETF issuer is in record territory while BlackRock is being dragged back by IVV's unusual underperformance. Competitive pressure from a single product forces a strategic response.
A fee cut on IVV is now being discussed as a likely answer. Current holders would get cheaper S&P 500 exposure, and BlackRock would accept a margin hit on one of its flagship products in order to stop the flow exodus.
The scale of the gap matters for anyone watching the broader ETF fee war. If BlackRock moves on IVV's price, it raises immediate questions about how rivals managing similar S&P 500 products respond, and whether this triggers another round of cost compression across passive equity funds.
Mentioned: BLK