Vanguard is one of the biggest Investment fund managers of the world, known for its focus on passive investment and offering low -cost products. It was founded in 1975 by John Bogle in the US and is famous for being a pioneer in the development of indexed funds, which seek to replicate the performance of a market index, Like the S&P 500instead of trying to actively overcome it.
A seemingly unstoppable money of money puts Vaguard Group Inc. on the edge of claiming a crown that State Street Corp. held For decades.
Almost U $ S18 billion have fluid to the ETF S&P 500 Vanguard (VOO symbol) In the first days of 2025, More than five times the amount that attracted the closest second place, after breaking the annual ticket record last year with a figure of US $ 116 billion, according to data collected by Bloomberg. The assets in the background have increased AU $ S626 billion, placing it to the edge of eclipssing the US $ 637 billion of the SPDR S&P 500 ETF Trust (SPY), currently the largest ETF in the world.
The VOO appeal highlights the main public of the company based in Valley Forge, Pennsylvania: financial advisors aware of retail costs and investors, whose long -term investment horizons typically produce constant flows and rare retreats. The extremely low avant -garde rates have won a loyal base in the purchase and keep .
“In general, VOO won the fight for retail assets,” said Eric Balchunas, ETF senior analyst at Bloomberg Intelligence. “For me, Voo has the most committed investors. They are diamond hands that would blush anyone in the crypto world. “
On the other hand, SPY is highly valued among professional traders for their extremely narrow liquidity and Spreads. But the upper volume of operations of this background is often translated into bulky bidirectional traffic. An example of this is that Voo has never registered a negative net flow since its creation in 2010, while Spy has had net retreats in five years during that period.
In addition, VOO charges 0.03% annually, compared to the 0.095% Spy rate. This cost efficiency has allowed Vanguard enjoy Advisors
“Throughout 2024 and continuing at the beginning of 2025, the market environment has generally been favorable for the shares of great capitalization of the United States, which has contributed to the continuous enthusiasm for the ETFs of the S&P 500,” said Rodney Comegys, director Global of the Vanguard shares indices, in a statement. “And as ETF model wallets continue to gain ground with investors and advisors, the assignments to widely diversified ETFs, low cost and high liquidity as VOO have continued to increase.”
Although Voo is in a privileged position to overcome Spy, the Blackrock Inc. industry giant is not far away. The Ishares Core S&P 500 ETF (IVV), which has $ 610 billion in assets, has also increased its size, absorbing almost $ 87 billion only last year. The IVV rate currently coincides with that of VOO in 0.03%, but industry experts are committed to this could change.
“The IVV asset base could also soon exceed Spy, since it is widely used. We also believe that Blackrock could become more aggressive in the price of IVV,” said Todd Rosenbluth, TMX Vettafi research head. “Being the king of the ETFs market is worth fighting.”
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
