BlackRock Inc., the world's largest issuer of exchange-traded funds, will move most of its U.S. ETF assets from State Street Corp. to reduce its reliance on the bank's custody services.
BlackRock, with $2.2 trillion of U.S. ETF holdings at the end of the third quarter, will shift 40% to Citigroup Inc., 30% to JPMorgan Chase & Co. and 15% to Bank of New York Mellon Corp., BlackRock said Tuesday in a statement.
The rest will stay with Boston-based State Street, one of BlackRock's main rivals in the ETF business.
The transition will start in the second half of next year and take 18 months to complete, BlackRock said.
State Street, the third-largest issuer in the U.S., oversees the biggest ETF — the SPDR S&P 500 ETF Trust, with about $420 billion of assets.
The firm had $43.3 trillion of assets under custody or administration at the end of September.
