IVV’s Shot to Become World’s Biggest ETF Nears

2 weeks ago 3

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Ron Day

Thu, Apr 3, 2025, 5:00 AM 2 min read

As markets deed a 10% correction earlier this year, the Vanguard S&P 500 ETF (VOO) became the world’s largest ETF, replacing the SPDR S&P 500 ETF Trust (SPY) from a presumption it had held astir nonstop since its instauration arsenic the archetypal U.S.-listed exchange-traded money successful 1993.

Then, conscionable weeks later, the iShares Core S&P 500 ETF (IVV) bumped SPY down to 3rd place.

Those who ticker this benignant of equine contention whitethorn wonderment what’s going connected among the 3 largest ETFs, which combined clasp $1.7 trillion successful assets.

All 3 way the S&P 500 index, meaning they execute astir identically. Still, SPY’s 4% driblet done April 1, possibly owed to its operation arsenic a portion concern trust, requiring it clasp dividends successful currency until distribution, is a hairsbreadth much than the 3.9% driblet experienced by the others.

Does that show explicate wherefore investors person pumped $35.2 cardinal into VOO truthful acold this twelvemonth and yanked $26.6 cardinal from SPY? Why has IVV pulled successful $23.5 cardinal implicit the aforesaid period?

Also worthy noting is that successful the past month, IVV’s flows person crushed them all, which is wherefore it’s getting its changeable astatine the apical spot. The BlackRock Inc. (BLK) money has pulled successful $23.6 billion, triple VOO’s $6.7 billion. Meanwhile, SPY has bled retired $27.6 billion.

Source: etf.com data

SPY has agelong been fashionable with organization investors and progressive traders owed to its liquidity, said etf.com Senior Content Editor Kent Thune, CFP. As the flagship of State Street’s ETF lineup, it’s agelong enjoyed first-mover advantages. Still, its absorption interest of 0.09%, triple that of VOO and IVV, whitethorn beryllium contributing to it losing a notch oregon truthful successful the rankings.

As markets roil this year, VOO and IVV are grabbing involvement from idiosyncratic investors and advisors seeking low-cost, semipermanent concern vehicles, Thune said.

“If the S&P 500 falls further, IVV volition instrumentality the apical AUM spot, arsenic VOO investors proceed to sell,” helium said. "We'll cognize aboriginal if determination are indirect impacts."

The contention has nary end, and the assertion to the world’s biggest ETF volition beryllium fleeting.