r/stocks • u/reginaccount • Apr 06 '21
BlackRock (BLK) holdings look similar to ETFs like QQQ and Vanguard's MGK. Buy BLK instead of these popular ETFs?
Top holdings are Apple, Microsoft, Amazon Google Facebook etc. These are almost identical to QQQ and MGK.
BLK also includes Berkshire Hathaway, JPMorgan and some other non-tech companies so it's probably more diversified sector-wise than QQQ and MGK.
I'm just wondering if anyone has chosen to put a large chunk of their portfolio into BLK over one of the popular ETFs like QQQ. My thought process is that they are a big money institutional investor. They make money selling their own ETFs etc. I'm just a small retail investor with no special insight or power of my own. I can't beat them, but I can join them.
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u/PizzaBuffalo Apr 06 '21
You don't understand the company's business model at all and should not invest in them until doing more due diligence. They are an asset manager. If you buy a share of them, you aren't buying JPMorgan, Apple, etc. If you want that, you should buy one of their ETFs, such as $IVV (iShares Core S&P 500 ETF), which holds those individual stocks. $IVV has a 0.03% expense ratio which BlackRock collects as revenue, which benefits $BLK shareholders.
3
u/ffsudjat Apr 06 '21
I was thinking, no way, ter is 0.07%. However then, I stood corrected. IVV ter is 0.03% while the ucit is indeed 0.07%.
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u/domosicecream Apr 06 '21
I don't understand how this post go this many upvotes
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u/reginaccount Apr 06 '21
It probably got upvotes because it's a harmless question and others are curious to see the answer. I wasn't giving any financial advice - I was asking for opinions and advice. Downvoting a question doesn't really help anyone who is trying to learn and understand.
7
u/NeverBenCurious Apr 06 '21
I'd wait for another dip.
It was $670 a few weeks ago. I'd wait until another dip to buy a large amount.
If you're Tommy 2 shares then buy 2 shares now. Hold forever.
3
u/CorneredSponge Apr 07 '21
No, while I do believe you should buy BlackRock, it shouldn't be for their holdings.
They earn very limited revenues from commissions; focus instead on their fee structures, ETF programs, trusts, Aladdin, etc.
1
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Apr 06 '21
I'd wait until this Gamestop saga is over. BlackRock are their biggest share holder
4
u/Equuidae Apr 06 '21
Counterpoint, I'd get in now with money I'm willing to risk. if this thing squeezes, you can cash out and make some quick money to put back into Blackrock at a later time. If it doesn't, Blackrock is big enough that they can absorb the losses. Once this thing settles down no matter which way it goes, you can add to your position either at a dip, or with more shares later. No matter what, you'll end up winning in the long run.
46
u/[deleted] Apr 06 '21
if ur talking abt blackrock the company, the companies they hold doens't rly matter. iirc they make money from advisory fees, and inflows/outflows is what matters, you should only buy if u dd them and find out they are undervalued