BlackRock, Vanguard, and others are vying on the ETF market.
Since the outbreak of the pandemic, the ETF market has undergone a significant upheaval as a result of the influx of new funds and service providers.
State Street (STT), Charles Schwab (SCHW), Fidelity, Invesco (IVZ), and others that are aiming to disrupt the market and outperform it are also vying for position.
It occurs in the midst of a protracted dispute for lower ETF fees, as well as the constantly expanding range of products and investment strategies.
More than 60% of the U.S. ETF market, which has grown by over five times to $6.6T from $1.35T a decade ago, is controlled by BlackRock (BLK) and Vanguard, but the competition has intensified recently.
Vanguard has had inflows totaling over $656 billion since the year 2020, compared to BlackRock’s iShares ETF unit’s $411 billion (which it bought from Barclays in 2009).
While Vanguard has stressed its position as a low cost provider to draw retail customers and financial advisors, BlackRock (BLK) advertises a wider choice of ETFs and targets larger institutional investors.
“We are engaged in a distinct game. We want to be the best, but we also want to increase the use of ETFs across all clientele. That is more significant, “iShares Americas Head Armando Senra remarked.
Vanguard’s Dan Reyes continued, “We are always considering increasing the service, but we will be very selective.” We tend to steer clear of thematic or incredibly constrained universes.
The Vanguard Total Bond Market ETF (BND) is on the verge of outpacing BlackRock’s (BLK) iShares Core U.S. Aggregate Bond ETF (AGG) as the biggest bond exchange traded fund globally.
At the end of July, Vanguard had $2.04T in worldwide ETF assets, compared to $2.96T for Blackrock, albeit the latter is catching up.
State Street’s (STT) SPDR S&P 500 Trust (SPY) is the largest ETF by assets, while BlackRock (BLK) and Vanguard continue to dominate the following 15 out of 16 ranks.
