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Vanguard Dethrones BlackRock As Second Largest ETF Manager: Here's How Their Funds With Exposure To S&P 500 Fared This Year

Benzinga ·  16:08

Vanguard has surpassed BlackRock as the manager of the world's second-largest ETF.

What Happened: Vanguard's S&P 500 ETF (NYSE:VOO) has edged past BlackRock's iShares Core S&P 500 ETF (NYSE:IVV) in terms of assets. As of last Friday, VOO held $540.76 billion, slightly exceeding IVV's $540.66 billion, based on Morningstar data. This marks a notable change, as VOO was $58 billion behind IVV at the start of 2022, Financial Times reported on Tuesday.

VOO is now trailing the SPDR S&P 500 ETF Trust (NYSE:SPY) by $50 billion, which remains the largest ETF globally. Analysts, including Bryan Armour from Morningstar, predict that VOO could surpass SPY by 2025 or 2026 if its current growth continues.

Vanguard's broader S&P 500 vehicle holds $1.28 trillion in assets, ranking as the second-largest investment fund globally. Meanwhile, the net assets held by BlackRock's IVV ETF is $540.10 Billion.

As per Benzinga Pro, as of Monday, the net asset value (NAV) of year-to-date (YTD) returns of VOO has risen 21.10%. On the other hand, the NAV of YTD returns of IVV has been higher by 21.43%.

Both Vanguard and BlackRock's ETFs charge an annual fee of 3 basis points, attracting retail investors. The ETF market has seen substantial growth, with assets exceeding $10 trillion in the U.S., nearly doubling over four years, according to ETFGI.

Why It Matters: The rise of Vanguard's VOO reflects a broader trend of investors gravitating towards lower-cost ETFs. In May, a significant shift among major ETFs, with SPY experiencing outflows while VOO attracted new investments. This trend indicates a growing preference for cost-effective investment options among investors.

Additionally, in September, Vanguard's ETFs reached new highs as the S&P 500 Index hit record levels, further solidifying Vanguard's position in the market.

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Photo via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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