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Vanguard Seen Taking Back #1 ETF Inflows: Poll


BlackRock’s (BLK) iShares family recaptured the ETF inflow title from Vanguard in 2012 but most respondents to a poll believe Vanguard will take back the crown this year or next.

According to an Ignites.com poll this week, 49% of respondents think Vanguard will not get beaten by iShares in 2013, the most popular response.

Meanwhile, 21% said Vanguard will regain the top spot from iShares, but probably not this year.

Finally, 27% said iShares will remain the top-selling ETF lineup this year, according to the Ignites poll. Vanguard topped the ETF sales rankings in 2010 and 2011.

According to Morningstar data, the iShares U.S. ETF business gathered inflows of $60.7 billion in 2012, taking total assets to $556 billion for a market share of 42.2%. [iShares Takes Back the ETF Inflow Crown]

Vanguard saw inflows of $52.7 billion, lifting its total ETF assets to $246 billion.

State Street (STT) pulled in $40 billion as its ETF business stood at $329 billion at year-end, according to Morningstar.

Vanguard and iShares have been major players in the so-called fee war in the ETF industry as providers cut expense ratios in an effort to attract investors to diversified, core products.

However, the firms have downplayed their rivalry.

“Vanguard does not view this as a cash flow horse race,” Vanguard spokesman John Woerth told Ignites.

“Vanguard is a tremendous firm [and] great competitor,” BlackRock CEO Larry Fink said during the firm’s recent quarterly earnings call. “We have never done anything as something that we are a fight between BlackRock and Vanguard. That’s a topical myth by the media. We are just trying to execute our strategy and provide what we think are great outcomes.”

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.