Bloomberg reports that the Vanguard Group, Inc. has grown its market share from 15 to 20 percent since 2010. Consequently, its two biggest rivals, BlackRock’s iShares and State Street’s SPDRs have lost ground incrementally since then. Specifically, Vanguard has added $51 billion in assets to its coffers this year alone. That’s around 32 cents of every dollar invested in exchange-traded funds (ETFs) this year — up from 28 cents last year. And there doesn’t seem to be an end in sight due to the unique structure of Vanguard’s products and their low cost. The average expense ratio of a Vanguard ETF is 0.14 percent, compared to 0.39 percent for iShares and .35 percent for SPDRs. Clearly, Vanguard is the way to go for ETF buyers today.
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
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Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers: