Vanguard lags BlackRock in ETF sales

iShares welcomed $198.4 billion into its exchange-traded funds through November.
DEC 18, 2017

 

Vanguard Group is lagging BlackRock Inc. in ETF sales — but any sobbing you hear from the ETF industry probably isn't coming from the Malvern, Pa.-based behemoth. BlackRock's iShares welcomed $198.4 billion into its ETFs through November, according to Morningstar Inc. Vanguard is in second place, with $127.7 billion in net new assets. Top seller at iShares: The Core S&P 500 ETF, which saw an estimated net inflow of $30 billion, versus $13.2 billion for the Vanguard 500 Index ETF — a remarkable difference between two extremely similar products. Both funds track the Standard & Poor's 500 stock index and both charge 0.04% in expenses. "From an investor point of view, you can't slip a piece of paper between the two," said Dave Nadig, CEO of ETF.com. The sales difference could stem from the iShares marketing machine, Mr. Nadig said. "There's no question that BlackRock built a brand that resonates with the early adopter investor. iShares is probably the only real ETF brand." Vanguard, of course, has its legion of devoted fans, which have driven the company to $4.5 trillion in total assets, including traditional open-end funds. After iShares and Vanguard, however, is a considerable air pocket in sales: Charles Schwab & Co. weighs in at third with $24.3 billion in net new assets by Morningstar's estimate. But that's about a 30% improvement from last year for Schwab, Mr. Nadig notes. "That's really healthy growth," he said. Fourth-place State Street saw $15.5 billion in net new sales, according to Morningstar. "They have not had a good year," Mr. Nadig said. Large-cap foreign blend ETFs have been most popular with investors this year, with $65.4 billion in net new assets. Close behind: Large-cap U.S. ETFs, with $62.2 billion. Least popular: Commodity energy ETFs, with a $1 billion outflow.

Latest News

Goldman gets shareholder backing on $80M executive bonus packages
Goldman gets shareholder backing on $80M executive bonus packages

The approval of the pay proposal, which handsomely compensates its CEO and president, bolsters claims that big payouts are a must in the war to retain leadership.

Integrated Partners, Kestra welcome multigenerational advisor teams
Integrated Partners, Kestra welcome multigenerational advisor teams

Integrated Partners is adding a husband-wife tandem to its network in Missouri as Kestra onboards a father-son advisor duo from UBS.

Trump not planning to fire Powell, market tension eases
Trump not planning to fire Powell, market tension eases

Futures indicate stocks will build on Tuesday's rally.

From stocks and economy to their own finances, consumers are getting gloomier
From stocks and economy to their own finances, consumers are getting gloomier

Cost of living still tops concerns about negative impacts on personal finances

Women share investing strengths, asset preferences in new study
Women share investing strengths, asset preferences in new study

Financial advisors remain vital allies even as DIY investing grows

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.