The flagship exchange-traded vehicle of the index investing pioneer, the Vanguard S&P 500 ETF, became the first ETF in history to achieve and surpass $1 trillion in assets, the investment business said on Wednesday.
Less than eighteen months after surpassing State Street Investment Management’s SPDR S&P 500 ETF, the Vanguard fund reached this milestone on Tuesday, setting a new record in assets as investors seeking broad market exposure also looked for the cheapest funds.
The State Street fund, which now ranks third in the three-way contest between those two firms and BlackRock Inc., has a management fee of 0.09%, while VOO charges just 0.03%.
BlackRock, the biggest asset manager in the world, has the second-largest ETF that tracks the Standard & Poor’s 500 index.
Its iShares Core S&P 500 ETF with $860 billion in assets and 0.03% expenses.
With its 1993 introduction, SPY, the market pioneer that contributed to the ETF market’s opening, today has $785 billion in assets.
Todd Rosenbluth, head of research at VettaFi, stated, “This is an important milestone.” “Investors continue to turn to low-cost broad market exposure to gain access to the S&P 500 using VOO.”
