Vanguard Leading ETF Sales in 2013: Report

ETF Trends

Vanguard is the leading the global ETF business in sales for the first half of 2013 after experiencing inflows for June while most of its competitors saw redemptions.

Vanguard is the top ETF asset gatherer so far this year with net inflows of $28.9 billion, according to independent research and consultancy firm ETFGI.

The firm ranks third in terms of global ETF assets behind BlackRock’s iShares and State Street Global Advisors, but is gaining ground.

In the U.S. ETF business, BlackRock controls $585.5 billion of assets. State Street accounts for $292.2 billion, not including the $37.9 billion SPDR Gold Shares (GLD). Vanguard manages $282.4 billion of ETF assets, according to XTF.com.

Vanguard moved ahead of BlackRock in global ETF inflows in June when he ETF industry registered its first month of net investor outflows for more than two years, the Financial Times reports.

Investors pulled about $4 billion from exchange traded funds and notes last month due to uncertainty surrounding the future of QE programs and volatility in the markets, said Deborah Fuhr, managing partner at ETFGI.

Vanguard was the only one of the top five ETF providers to log net inflows in June, according to ETFGI.

However, when mutual fund flows are included, Vanguard as a firm saw its first monthly redemptions in nearly two decades, Bloomberg News reports. Vanguard experienced net withdrawals of $100 million in June.

“All streaks must come to an end,” said Vanguard spokesman John Woerth wrote in the report. Vanguard gathered $76.8 billion in investor deposits in the first half of 2013.

Asset managers saw heavy outflows at bond funds last month on rising interest rates and fears the Federal Reserve may pull back on quantitative easing.

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.

Rates

View Comments (0)