Base fees and securities lendingWide moat

BlackRock (BLK) — moat facet

A price that fell for years on a volume that kept rising, until private markets stopped the fall in 2025.

Base fees and securities lending are what BlackRock is. The line was $19,179 million in 2025, up from $16,100 million in 2024 and $14,399 million in 2023 1, and 79% of revenue 2. It is a percentage of the value of the assets BlackRock manages, charged whether markets rise or fall, plus the income from lending out the securities those funds hold: securities lending was $705 million of the 2025 figure, against $615 million in 2024 and $675 million in 2023 3.

Base fees and securities lending by product, 2025 ($m)Equity ETFs$6,043mPrivate markets$2,350mActive equity$2,167mActive fixed income$2,018mFixed income ETFs$1,532mActive multi-asset$1,332mNon-ETF index$1,321mCash management$1,245mBlackRock Form 10-K FY2025; smaller lines omitted
Private markets, 2% of average assets, earned more than non-ETF index on 29%.

How much each dollar pays depends entirely on where it sits. Equity ETFs earned $6,043 million in 2025, active equity $2,167 million, active fixed income $2,018 million and private markets $2,350 million 4. Private markets supplied 12% of base fees on 2% of average assets; non-ETF index supplied 7% of the fees on 29% of the assets 5. By client type, ETFs earned $8,077 million, institutional active $4,313 million, retail $4,534 million and institutional index $1,010 million 6.

The history of the line is a price that fell while the volume rose. BlackRock ended 2021 with $10.0 trillion under management and ended 2023 with the same $10.0 trillion; by the end of 2025 assets were $14.0 trillion 7. Measured against the average of year-end assets, base fees came to about 15.5 basis points in 2023, 14.9 in 2024 and 15.0 in 2025 8. The rate stopped falling in 2025 for one reason: private markets base fees went from $889 million in 2023 to $2,350 million 9, most of it bought with HPS and GIP.

Profitability is not disclosed by line, because BlackRock reports one segment. The company's operating margin was 29.1% in 2025 on a reported basis 10; this line, with no product cost against it beyond fund expenses and distribution, carries most of that.

Growth now is fast and mostly markets. In Q2 2026 the line was $5,726 million against $4,454 million a year earlier 11, up 29%. ETF fees were $2,595 million against $1,875 million and private markets $639 million against $499 million 12. Annualised, the quarter's base fees came to about 15.7 basis points of average assets 13, above 2025's rate, which is what the acquisitions were bought to do.

The outlook is a contest between two mixes: ETFs and private markets pulling the rate up, and institutional index, still $3.9 trillion 14 at 2.9 basis points, dragging it down. The verdict turns on one figure. If the annualised base-fee rate holds above 15 basis points through a quarter in which markets fall, the mix shift is real; if it drops back toward 14, the acquisitions only paused a decline.

Moat trajectory: Widening

Private markets base fees went from $889m in 2023 to $2,350m in 2025, lifting the fee rate.

The number that tests this moat
Moat Explorer calc
Annualised base-fee rate, latest quarter
About 15.7bp in Q2 2026 ($5,726m x4 over average AUM of $14.6tn)

Holding above 15bp through a falling market would prove the mix shift; slipping toward 14bp would not.

How it's calculated: Q2 2026 base fees and securities lending x4 / average of March and June 2026 AUM
Source: BlackRock Form 10-Q, Q2 2026 ↗
References
  1. ReportedThe line was $19,179 million in 2025, up from $16,100 million in 2024 and $14,399 million in 2023 , and 79% of revenue .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  2. Moat Explorer calcThe line was $19,179 million in 2025, up from $16,100 million in 2024 and $14,399 million in 2023 , and 79% of revenue .
    Moat Explorer calculation from BlackRock's Form 10-K FY2025 and Q2 2026 Form 10-Q: shares of revenue, growth rates, base fees per dollar of average AUM, distribution costs per dollar of distribution fees — FY2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  3. ReportedIt is a percentage of the value of the assets BlackRock manages, charged whether markets rise or fall, plus the income from lending out the securities those funds hold: securities lending was $705 million of the 2025 figure, against $615 million in 2024 and $675 million in 2023 .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  4. ReportedEquity ETFs earned $6,043 million in 2025, active equity $2,167 million, active fixed income $2,018 million and private markets $2,350 million .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  5. ReportedPrivate markets supplied 12% of base fees on 2% of average assets; non-ETF index supplied 7% of the fees on 29% of the assets .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  6. ReportedBy client type, ETFs earned $8,077 million, institutional active $4,313 million, retail $4,534 million and institutional index $1,010 million .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  7. ReportedBlackRock ended 2021 with $10.0 trillion under management and ended 2023 with the same $10.0 trillion; by the end of 2025 assets were $14.0 trillion .
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  8. Moat Explorer calcMeasured against the average of year-end assets, base fees came to about 15.5 basis points in 2023, 14.9 in 2024 and 15.0 in 2025 .
    Moat Explorer calculation from BlackRock's Form 10-K FY2025 and Q2 2026 Form 10-Q: shares of revenue, growth rates, base fees per dollar of average AUM, distribution costs per dollar of distribution fees — FY2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  9. ReportedThe rate stopped falling in 2025 for one reason: private markets base fees went from $889 million in 2023 to $2,350 million , most of it bought with HPS and GIP.
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  10. ReportedThe company's operating margin was 29.1% in 2025 on a reported basis ; this line, with no product cost against it beyond fund expenses and distribution, carries most of that.
    BlackRock, Inc. Form 10-K FY2025 - revenue by line and base fees by product and client type 2023-2025, securities lending revenue, performance fees by product, distribution and servicing costs, AUM 2021-2025, technology ACV growth, revenue recognition notes, operating margin — FY2023-FY2025 · publ. February 2026 · source ↗
  11. ReportedIn Q2 2026 the line was $5,726 million against $4,454 million a year earlier , up 29%.
    BlackRock, Inc. Form 10-Q, quarter ended 30 June 2026 - revenue by line, base fees by product and client type, performance fees by product, distribution costs, AUM by client type and product — Q2 2026 · publ. August 2026 · source ↗
  12. ReportedETF fees were $2,595 million against $1,875 million and private markets $639 million against $499 million .
    BlackRock, Inc. Form 10-Q, quarter ended 30 June 2026 - revenue by line, base fees by product and client type, performance fees by product, distribution costs, AUM by client type and product — Q2 2026 · publ. August 2026 · source ↗
  13. Moat Explorer calcAnnualised, the quarter's base fees came to about 15.7 basis points of average assets , above 2025's rate, which is what the acquisitions were bought to do.
    Moat Explorer calculation from BlackRock's Form 10-K FY2025 and Q2 2026 Form 10-Q: shares of revenue, growth rates, base fees per dollar of average AUM, distribution costs per dollar of distribution fees — FY2023 to Q2 2026 · publ. 2026-09-23 · source ↗
  14. ReportedThe outlook is a contest between two mixes: ETFs and private markets pulling the rate up, and institutional index, still $3.9 trillion at 2.9 basis points, dragging it down.
    BlackRock, Inc. Form 10-Q, quarter ended 30 June 2026 - revenue by line, base fees by product and client type, performance fees by product, distribution costs, AUM by client type and product — Q2 2026 · publ. August 2026 · source ↗
Sources
Generated September 23, 2026