Vanguard Surpasses State Street: A New Leader in ETFs

Vanguard Group's S&P 500 ETF has become the world's largest exchange-traded fund, surpassing State Street's SPDR S&P 500 Trust. Significant outflows from the SPDR ETF, along with inflows to Vanguard's fund, led to this change. BlackRock's iShares Core S&P 500 ETF is also competing for market leadership.

In a significant shift in the world of exchange-traded funds, Vanguard Group's Standard & Poor's 500 ETF has overtaken State Street Global Advisors' SPDR S&P 500 Trust to become the largest ETF globally, as reported by FactSet this Tuesday.

The anticipated change materialized when SPY experienced $2.8 billion in outflows, whereas Vanguard's ETF saw $305 million in inflows the same day. Consequently, Vanguard's VOO closed the day with assets totaling $632.2 billion, edging out SPY at $630.4 billion.

Despite the shift, State Street's ETF maintains its status as the oldest ETF in the U.S. market. Meanwhile, BlackRock's iShares Core S&P 500 ETF is another competitor in the race, holding assets worth $609.1 billion.

(With inputs from agencies.)