BlackRock is warning that relying solely on index funds may no longer be sufficient for retirement investing. Nick Nefouse, global head of retirement solutions at BlackRock, said in a phone interview with Bloomberg that there needs to be an evolution away from being indexed only, citing rising market concentration, geopolitical volatility, and longer retirements. The firm manages nearly $14 trillion globally, with about $5.5 trillion in ETF assets through its iShares platform. BlackRock suggests future target-date funds could include private-market investments such as private credit, infrastructure, and private equity, and notes that around 4% of 401(k) plans now offer a target-date fund with an annuity. The shift could benefit asset managers through higher fees, as actively managed funds typically charge more than passive index trackers, though only 38% of U.S. actively managed funds outperformed their average indexed peers in 2025 according to Morningstar.
BlackRock IncBlackRock's own advice to shift from passive to active/private investments could boost its fee income as a major asset manager.