Four financial giants, BlackRock, Vanguard, Charles Schwab, and State Street, have emerged as the silent powers behind many of the world's largest companies. These firms control around $32tn in assets. BlackRock leads with $11.48tn, followed by Vanguard at $8.7tn, Charles Schwab at $7.32tn and State Street at $4.3tn in assets under management (AUM).
The influence of these giants goes far beyond simple investment; together, they control more than 20% of the total US market capitalisation and hold stakes in more than 16 global markets. Astonishingly, they are the largest shareholders in around 90% of the S&P 500 firms, including Apple, Microsoft, Alphabet, Amazon, ExxonMobil, and Pfizer, and hold stakes in almost 95% of these firms, in pharmaceuticals, real estate, tech, media, banks, aviation, energy, and weapon manufacturing.
Additionally, these giant asset managers have been hired by governments across the world, including the US, UK, and Japan, to help manage projects or financial crises.
BlackRock manages assets worth more than the combined government spending of the world's 10 wealthiest countries, more than the GDP of Japan and Germany combined, and approximately half of America’s total GDP.
In his annual letter to CEOs, BlackRock Chief Executive and Chairman Larry Fink, who, since 2020, called on companies to do more to tackle climate change, said yesterday that "protectionism has returned with force," a development he said stemmed from a wealth divide that could be countered by offering more investors access to private markets.
His comments came just days before US President Donald Trump promised to unveil a massive tariff plan, which he dubbed "Liberation Day."
