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14_BLACKROCK_VANGUARD
Christopher David Ayotte edited this page Aug 24, 2026
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- Research Date: August 21, 2026
- Classification: Financial Structure Research
- Methodology: Public filings, SEC 13F, FEC data, USAspending.gov, OpenSecrets
- Status: Active Research
- AUM: $13.9 trillion (Q1 2026), record $14.04 trillion (YE 2025)
- Net Inflows: $698 billion full-year 2025 (record), $130 billion Q1 2026
- Revenue: $37.7 billion (2024), up 27% YoY Q1 2026
- Employees: ~20,000
- Founded: 1988 by Larry Fink
- Ownership: Publicly traded; top shareholders include Vanguard, State Street, Bank of America, Temasek
- Source: BlackRock Q1 2026 8-K (Apr 14, 2026); FY2025 earnings (Jan 15, 2026)
- URL: https://ir.blackrock.com
- AUM: ~$11.6 trillion (Sept 2025); $10.1 trillion (April 2025 per Statista)
- Investors: 50+ million worldwide
- Funds: 465+ globally
- Employees: ~20,000
- Founded: 1975 by John C. Bogle
- Ownership: Uniquely owned by its member funds, which are owned by fund shareholders. No outside investors.
- Expense Ratio: Asset-weighted average of 0.07% (2025)
- Source: Vanguard corporate facts; Statista (2026)
- URL: https://corporate.vanguard.com
- AUM: $5.7 trillion (YE 2025), record; $6.28 trillion (latest)
- Net Inflows: $180 billion (2025)
- ETF AUM: $344 billion U.S. low-cost ETFs; $173 billion gold ETFs
- Revenue: $2.4 billion management fees (2025), +13% YoY
- Clients: 2,100+ institutional clients in 60+ countries
- Source: State Street 2025 Annual Report; rebranded June 2025
- URL: https://www.statestreet.com
- Managed Assets: $7.1 trillion (2025), $7.8 trillion (Q2 2026)
- Assets Under Administration: $18 trillion (2025), $19.9 trillion (Q2 2026)
- Revenue: $37.7 billion (2025), record
- Retirement Accounts: 54+ million
- 401(k) Market Share: ~36.5% of U.S. 401(k) assets on Fidelity platform
- Employees: 80,000+
- Founded: 1946
- Ownership: Privately held (FMR LLC), controlled by Johnson family
- Source: Fidelity 2025 Annual Report; Q2 2026 Business Update
- URL: https://about.fidelity.com
| Firm | AUM | % of Global AUM (~$147T) |
|---|---|---|
| BlackRock | $13.9T | 9.5% |
| Vanguard | ~$11.6T | 7.9% |
| Fidelity | $7.8T | 5.3% |
| State Street | $5.7T | 3.9% |
| TOTAL | $39.0T | 26.5% |
These four firms collectively manage over one-quarter of all global assets under management.
| Rank | Contractor | Vanguard | BlackRock | State Street | FY2025 DoD Awards |
|---|---|---|---|---|---|
| 1 | Lockheed Martin | ~9% | ~7.8% | ~4.9% | >$50B |
| 2 | RTX (Raytheon) | ~9% | ~7.5% | - | Major |
| 3 | Boeing (Defense) | ~6.4% | ~5% | - | ~$12.4B |
| 4 | Northrop Grumman | ~9% | ~7.5% | ~4.5% | Major |
| 5 | General Dynamics | ~8.5% (2nd) | - | - | Major |
| 6 | L3Harris | ~8.5% | ~7.5% | - | Major |
| 7 | Huntington Ingalls | ~10% | ~8.5% | - | Major |
| 8 | Booz Allen Hamilton | ~9% | ~7% | - | Major |
| 9 | Leidos | ~10% | ~8% | ~4.5% | Major |
| 10 | Anduril | Private (Founders Fund, a16z) | - | - | Growing |
Source: DEF 14A proxy filings (2025/2026); whoistheownerof.com (May 2026); Fintel 13F data
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Lockheed Martin: 18,877,978 shares valued at $9.62 billion (June 30, 2026)
- Source: Fintel 13F-HR filing (Aug 7, 2026)
-
BlackRock IDEF ETF: Actively managed defense ETF launched May 2025
- Top holdings: GE Aerospace, RTX, Palantir, Boeing, Airbus
- Expense ratio: 0.55%
- Source: ETF.com (May 21, 2025)
Vanguard and BlackRock appear as top shareholders in 9 of 10 largest US defense contractors. This is structural — as the world's two largest passive index fund managers, they own substantial percentages of nearly every publicly-traded US company. This is a feature of the index-fund era, not a strategic position in the defense industry specifically.
- Total Contract Value: $4.68M (GovCon data) / $16.6M (ReadTheGovContract)
- CAGE Code: 5ABN9
- UEI: CQFDA5YZ6FN6
- 13 federal awards (Aug 2022 - Apr 2025)
- Primary Agency: Pension Benefit Guaranty Corporation (PBGC)
-
Contracts:
- PBGC Contract 16PBGC23C0006: $5.55M obligated, $13.875M potential (2023-2033)
- Description: "Investment Risk Management System"
- NAICS: 541519 (Other Computer Related Services)
- PBGC Contract 16PBGC17C5002: $694K (2022)
- Description: "Risk Management Services"
- Source: USAspending.gov; GovCon In A Box
- PBGC Contract 16PBGC23C0006: $5.55M obligated, $13.875M potential (2023-2033)
-
Aladdin (Asset Liability and Debt Derivative Investment Network):
- Used by ~200 financial firms managing ~$18 trillion
- US government hired BlackRock to manage toxic assets during 2008-2009 financial crisis
- Federal Reserve Bank of New York and Treasury Department contracted with BlackRock
- Revolving Door Project filed FOIA requests (2019) for Treasury, Fed, SEC, CFTC contracts
- Source: Revolving Door Project (Mar 20, 2019); Prospect.org
- 151 contracts, total value ~$73.5 billion across 75 agencies and 26 states
- Source: CivicIQ government contract intelligence
-
2024 Total: $837,000 (record)
- Republican: $584,500
- Democratic/Independent: $530,000
- Bipartisan split
-
Top Recipients (2024 cycle):
- DNC Services Corp: $442,230
- NRSC: $127,600
- DCCC: $99,717
- Rep. Hakeem Jeffries (D-NY): $90,875
- Kamala Harris: $87,182
- Nikki Haley: $60,550
- Source: FEC filings; BlackRock PAC Disbursements 2024 (blackrock.com)
- 2024 Lobbying Expenditure: $2,840,000
- 2023: $1,860,000
- 2026 (Q1): $940,000
- Since 2010: ~$37.3 million total, 147 disclosures
- Q3 2025: $740,000 in-house lobbying
- Revolving Door: 32 of 44 BlackRock lobbyists (72.73%) in 2024 previously held government jobs
-
Key Lobbyists:
- Benjamin Bruce Cantrell: 10 years Republican congressional experience, Chief of Staff to Sen. Markwayne Mullin
- Bryan Alexander Wood: 10 years Republican House staff, Senior Adviser/Counsel to House Financial Services Committee
- Matthew B. VanKuiken: 12 years Democratic Senate experience, Chief of Staff to Sen. Debbie Stabenow
- External Firms: Daly Consulting Group ($880K 2022-2025); Resolution Public Affairs ($740K 2022-2025)
- Lobbying Issues: Digital assets taxation, DOL fiduciary standards, AI regulation, retirement savings, ESG
- Source: OpenSecrets.org; Legis1 (Oct 30, 2025)
- Total: $2,599,879 (individual + PAC)
- PAC contributions: $670,500 (45.39%)
- Rank: 405 of 40,455 organizations
- Source: OpenSecrets.org
- Vanguard does not maintain a federal PAC
- Limited direct political contributions
- Source: Vanguard corporate governance disclosures
- Scaled back ESG-related fund support in 2023 under political pressure
- Added Egan Jones as third proxy advisor
- Offered non-ESG voting choices to clients
- SEC eliminated "wider societal interest" requirement for shareholder proposals
- Source: Pensions & Investments (2023); The Blaze (Aug 2023)
- Launched new ESG-focused funds for institutional investors (Sept 2025)
- Drastically reduced ESG project funding in 2023
- Source: Market Research Future reports
- AG Ken Paxton demanded BlackRock account for "underperforming, potentially illegal 'ESG' state pension fund investments" (Aug 2022)
- 19 states joined letter to Larry Fink challenging ESG criteria
- Source: Texas Attorney General press release (Aug 8, 2022)
- Total state/local pension assets: ~$5.4 trillion (Federal Reserve data)
- Equity holdings: ~6% of US stock market ownership
- 20 million members in state/local retirement plans (2012 Census)
- Key finding: Many large state pension plans are clients of BlackRock and Vanguard
- Source: NBER Working Paper w21020; Federal Reserve Flow of Funds
- "Many large pension funds and sovereign wealth vehicles often appear among BlackRock's clients"
- BlackRock explicitly markets public pension solutions (blackrock.com/institutions)
- Texas AG accused BlackRock of politicizing pension fund management
- Source: BlackRock institutional solutions; Reuters (Aug 27, 2025)
- Vanguard is the default investment option for many 401(k) plans
- 64% of Vanguard participants solely invested in automatic investment programs (2021)
- 75% of plans with 1,000+ participants adopted automatic enrollment
- Source: Vanguard How America Saves 2022
- ~36.5% of US 401(k) assets on Fidelity platform
- 54+ million retirement accounts
- $3.61 trillion of estimated 401(k) assets
- Source: Axis Intelligence Research (Aug 2026)
- Top 100 global asset owners: $23.5 trillion (2020)
- Pension funds: 58% of top 100 assets
- Sovereign wealth funds: 35% of top 100 assets
- Source: Willis Towers Watson Thinking Ahead Institute
- Norway Government Pension Fund Global: Uses both BlackRock and Vanguard; previously held large BlackRock position (sold before 2017)
- Saudi PIF: $1+ trillion AUM; partners with BlackRock
- Abu Dhabi Investment Authority: Uses both firms
- Singapore GIC/Temasek: Temasek is top-5 BlackRock shareholder
- China Investment Corporation: Uses index products
- Kuwait Investment Authority: Uses both firms
- Source: SWF Institute; Brand Finance (2024); US Business Times (2026)
- "Many of the world's largest pension funds, endowments, and sovereign wealth vehicles use both — Vanguard for core beta at near-zero cost, BlackRock for alternatives, factor strategies, and Aladdin's risk analytics"
- Source: US Business Times (June 2026)
- Funds domiciled in Ireland (Vanguard Investment Series plc, Vanguard Funds plc)
- Operations in Europe, Asia, Australia
- Source: Vanguard MIFID documents; Vanguard Ireland fund docs
- Operations in 30+ countries
- Clients in nearly every corner of the world
- Source: BlackRock corporate filings
- Passive strategies: 39% of top-500 AUM (2024)
- Top 10 passive providers: Captured 90%+ of net inflows over past decade
- US index funds + ETFs: Majority (52%) of long-term US fund assets at year-end 2025
- Vanguard + BlackRock + State Street: Together own 20-25% of virtually every S&P 500 company
- Source: Thinking Ahead Institute World 500 (2025); BCG Global Asset Management Report (2026)
- Three firms own significant stakes in competing companies simultaneously
- Example: Vanguard owns ~9% of Lockheed Martin AND ~9% of RTX AND ~9% of Northrop Grumman
- This structural ownership gives index fund managers proxy voting power over:
- Corporate governance
- Executive compensation
- Environmental policies
- Political spending
- Shareholder proposals
- Source: Whoistheownerof.com defense analysis (May 2026)
- BlackRock/Vanguard/State Street are top 3 shareholders in every major defense contractor
- These companies receive $100B+ annually in Pentagon contracts
- Defense spending covers: nuclear weapons, satellite systems, missile defense, space programs
- BlackRock and Vanguard are top shareholders in major energy companies
- ESG policies directly affect which energy projects get funded
- Source: Texas AG complaint (2022)
- BlackRock's Aladdin processes $30 trillion in monitoring across 600 institutional clients
- Technology services revenue: 22% YoY growth (Q1 2026)
- AI and quantum computing investments
- "Market fundamentals are strong and well supported, with higher margins and earnings momentum catalyzed by new technology"
- "The scale and depth of our client relationships globally have never been greater"
- $868 billion of net inflows and 10% organic base fee growth over the trailing 12 months
- Source: BlackRock Q2 2026 earnings (Jul 16, 2026)
- HPS Transaction: Added $165B in client AUM
- Preqin Transaction: Boosted technology services revenue
- Bitcoin ETF (IBIT): $58.1 billion net assets (May 29, 2026)
- IDEF Defense ETF: Launched May 2025
- Source: BlackRock SEC filings
- Four firms manage $39 trillion — 26.5% of global AUM
- These same firms own 5-10% of every major US defense contractor
- BlackRock has $16.6M in federal contracts (PBGC) and $73.5B across 151 contracts
- BlackRock spent $2.84M on lobbying in 2024; 73% of lobbyists are former government officials
- BlackRock PAC donated $837K in 2024 (bipartisan)
- Pension funds (US and international) are major clients of these firms
- Index fund ownership gives these firms proxy voting power over corporate governance
- Whether this structure constitutes "control" or is simply a feature of modern capital markets
- Whether passive index investing creates anticompetitive effects
- Whether pension fund investments create conflicts of interest
- The appropriate role of ESG criteria in institutional investing
| # | Source | Date | URL |
|---|---|---|---|
| 1 | BlackRock Q1 2026 8-K | Apr 14, 2026 | ir.blackrock.com |
| 2 | BlackRock FY2025 Earnings | Jan 15, 2026 | ir.blackrock.com |
| 3 | BlackRock Q2 2026 Earnings | Jul 16, 2026 | privatebankerinternational.com |
| 4 | Vanguard Corporate Facts | 2025-2026 | corporate.vanguard.com |
| 5 | State Street 2025 Annual Report | 2025 | statestreet.com |
| 6 | Fidelity 2025 Annual Report | Mar 2, 2026 | about.fidelity.com |
| 7 | Fidelity Q2 2026 Business Update | Aug 10, 2026 | bizjournals.com |
| 8 | OpenSecrets - BlackRock | 2024-2026 | opensecrets.org |
| 9 | USAspending.gov - BlackRock | 2022-2025 | usaspending.gov |
| 10 | GovCon In A Box - BlackRock | 2025 | govconinabox.com |
| 11 | CivicIQ - BlackRock | 2026 | civiciq.com |
| 12 | Legis1 - BlackRock Lobbying | Oct 30, 2025 | legis1.com |
| 13 | BlackRock PAC Disbursements 2024 | 2024 | blackrock.com |
| 14 | Whoistheownerof.com Defense | May 28, 2026 | whoistheownerof.com |
| 15 | Fintel - BlackRock LMT Holdings | Aug 7, 2026 | fintel.io |
| 16 | MarketBeat - BlackRock LMT | Aug 18, 2026 | marketbeat.com |
| 17 | ETF.com - BlackRock IDEF | May 21, 2025 | etf.com |
| 18 | Revolving Door Project | Mar 20, 2019 | therevolvingdoorproject.org |
| 19 | Texas AG Press Release | Aug 8, 2022 | texasattorneygeneral.gov |
| 20 | Thinking Ahead Institute World 500 | Nov 7, 2025 | pionline.com |
| 21 | BCG Global Asset Management Report | Apr 28, 2026 | coinlaw.io |
| 22 | PwC Global Asset Wealth Report | Nov 24, 2025 | pwc.com |
| 23 | Statista - BlackRock AUM | Aug 14, 2026 | statista.com |
| 24 | Statista - Vanguard AUM | Mar 3, 2026 | statista.com |
| 25 | Statista - State Street AUM | Aug 19, 2025 | statista.com |
| 26 | Axis Intelligence - Fidelity | Aug 19, 2026 | axis-intelligence.com |
| 27 | Brand Finance AM/SWF 50 | May 29, 2024 | brandfinance.com |
| 28 | SWF Institute | Various | swfinstitute.org |
| 29 | NBER Working Paper w21020 | Mar 6, 2015 | nber.org |
| 30 | Reuters - BlackRock Pensions | Aug 27, 2025 | reuters.com |
| 31 | Vanguard Investment Stewardship 2025 | Feb 18, 2026 | corporate.vanguard.com |
| 32 | Aeromorning Defense Review | Dec 24, 2025 | aeromorning.com |
| 33 | CoinLaw BlackRock Statistics | Jul 2, 2026 | coinlaw.io |
| 34 | FourWeekMBA - BlackRock AUM | Aug 6, 2026 | fourweekmba.com |
| 35 | WOWA.ca - Canada AUM Q3 2025 | Nov 12, 2025 | wowa.ca |
| Term | Definition |
|---|---|
| AUM | Assets Under Management |
| AUA | Assets Under Administration |
| 13F | SEC form requiring disclosure of equity holdings by institutional managers |
| DEF 14A | Definitive proxy statement filed with SEC |
| Aladdin | BlackRock's risk management platform |
| iShares | BlackRock's ETF brand |
| SPDR | State Street's ETF brand (Standard & Poor's Depositary Receipts) |
| PBGC | Pension Benefit Guaranty Corporation |
| CFIUS | Committee on Foreign Investment in the United States |
| ESG | Environmental, Social, and Governance |
| PAC | Political Action Committee |
| Proxy Voting | The right of shareholders to vote on corporate matters |
| Common Ownership | When the same institutional investors hold stakes in competing firms |
This document contains publicly available factual data from SEC filings, government databases, corporate disclosures, and news reporting. All claims are sourced. Interpretive analysis is clearly marked as such.