The world’s biggest asset manager is betting on ASX small caps

BlackRock, the world’s largest asset manager, has cut its exposure to the Australian sharemarket’s largest stocks and bought into its small caps, citing more favourable valuations and improving sentiment.

The firm, which manages more than $US13.5 trillion ($20.8 trillion) in funds, told advisors this week that its multi-asset division – which invests across a range of classes across the globe – had opened a position in small-cap Australian equities at its latest rebalance.

Source: https://www.afr.com/markets/equity-markets/blackrock-joins-great-rotation-from-asx-blue-chips-to-small-caps-20251118-p5ngct