When I first entered the investment business to work with my father, Dick Fabian, nearly four decades ago, roughly 95% of mutual funds were high-fee and charged a “load.”
The goal then – and maybe the attraction – of my family-run newsletter, Successful ETF Investing, was to serve as an “investor guidebook” to navigate the then-relatively-new landscape of low-fee, “no-load” mutual funds. Throughout the 1980s and 1990s, my father and I saw the tremendous growth of no-load mutual funds.
By the turn of the century, no-load funds had become the dominant vehicles for individual investors seeking broad, as well as targeted, sector exposure. Yet, in the past decade and a half, exchange-traded funds, or ETFs, have taken over the mantle as the dominant investment vehicles for individual investors.
Why is this the case?
Well, the reason is quite simple. ETFs are the most economical, most transparent, easiest and, in my view, best investment vehicles for investors who want exposure to nearly every facet of the equity markets, including broad-based domestic, international and sector-specific equities.
In recent years, the growth of smart-beta ETFs, leveraged ETFs, inverse ETFs and a variety of fixed-income and commodity ETFs has really made these funds the go-to vehicles for just about every investing style and objective.
In the chart below, you will find the 10 ETFs with the highest assets under management currently in operation today. As you can see, these ETFs are not off-the-radar funds by any means. Indeed, the #10-ranked ETF on this list has over $38 billion in assets under management.
The top 10 ETFs by assets, as they appear at ETFdb.com.
Let’s look at some of the biggest ETFs in a bit more detail.
To me, the ETF revolution, particularly over the past decade, has been one of the best developments to ever come out of Wall Street — so embrace it!
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