Vanguard Grabbing 40% of ETF Flows This Year

ETF Trends

The ETF business at Vanguard is building momentum as the asset manager gains ground against its competitors in the industry.

“Vanguard continues to take market share from rivals, pushing its market share up to 19.4%. Vanguard has attracted 40% of all ETF flows for the year to date,” notes Morningstar analyst Michael Rawson, in a report published Friday.

Over the past three years, Vanguard has only had one month of outflows from its ETFs compared with eight for BlackRock’s iShares and 15 for State Street Global Advisors. Other providers gaining ETF share include WisdomTree, Guggenheim, and Schwab, according to Morningstar.

U.S.-listed ETFs saw record outflows in August but Vanguard was the only firm among the top five providers to record inflows last month. [Vanguard Sidesteps Record Monthly Outflow for ETFs]

Vanguard has passed State Street as the second-largest ETF manager, if SPDR Gold Shares (GLD) is not included in State Street’s total. GLD is sponsored by a subsidiary of the World Gold Council, and State Street is the ETF’s marketing agent.

BlackRock’s iShares was the largest U.S. ETF provider at the end of August with assets of $588 billion, or 39.5% market share, according to Morningstar. [Breaking Down August ETF Flows]

However, Vanguard’s year-to-date inflows have more than doubled iShares. Vanguard has seen net inflows of $36.6 billion through August, compared with $17.3 billion for iShares, according to Morningstar data.

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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