Vanguard Overtakes BlackRock as ETF Leader

Vanguard's S&P 500 ETF VOO has recently surpassed BlackRock’s iShares Core S&P 500 ETF IVV in terms of assets, with VOO holding $540.76 billion compared to IVV's $540.66 billion. This significant shift comes after VOO lagged $58 billion behind IVV at the start of 2022. The growing trend towards lower-cost investment options has contributed to Vanguard’s rise, as retail investors increasingly favor ETFs with lower fees. With both Vanguard and BlackRock's ETFs charging an annual fee of just 3 basis points, this competition has intensified in the expanding ETF market, which has seen assets exceeding $10 trillion in the U.S. Vanguard’s growth aligns with investor behavior, where in May, SPY experienced outflows, and VOO saw inflows, indicating a notable preference for cost-effective options. Analysts suggest that if this growth continues, VOO might surpass SPY in the coming years.