We have talked about the development of exchange-traded funds (ETFs) and the popularity of these products among retail traders.
Today, we focus on the development of ETFs that monitor the S&P500.
Recently, Mohra Ke Wu passed the spy of State Street, making it the largest of S&P 500 ETF. However the data shows that SPY still takes in other categories. And then Blackrock is IVV, which is not far behind.
Wu leads S&P 500 ETF assets under Management (AUM)
Since 2010, AUM-Tracking S&P 500 ETF has increased from $ 88 billion to more than $ 1.8. Being the oldest US ETF, the State Street (SPY) began with the majority (76%) of the ETF S&P 500 assets (76%).
However, the chart below shows that ETFs are competing with Mohra (Wu) and Blackrock (IVV). In fact, Wu recently passed a detective in assets.
Chart 1: Both Wu and IVV AUM leaders are pressurizing the detective
The increase in popularity of VOO and IVV can be helped by their holding cost, which is less than 1/3 of SPY.
IVV and Wu Inflow have not come from retail
To catch, VOO and IVV have captured the lion shares of NET ETF Inflow (works) since 2017. Overall, these three ETFs have seen about $ 643 billion networks since 2017, of which 54% of people are going to VOO.
However, we use the same data for our retail trading updates, we see that surprisingly, SPY had the most retail inflows. In fact, SPY has $ 52 billion pairs in AUM from the beginning of 2017, more than the combined pure new retail assets obtained by VOO, IVV and SPLG in the same period.
This shows that other types of investors are contributing to the holding of IVV and Wu, and the spy market in ETF will be really negative without buying retail in wide flow, as there is proof of the total fund flow by retail net flow, further non-retail investors are getting more assets in IVV and Wu.
Chart 2: About 128% in SPY has come from retail investors since Net New AUM 2017 since 2017
The detective remains the most liquid S&P500 ETF ever
There is a category that spies still dominates: liquidity.
Spy trades more than $ 28 billion each day-both IVV and Wu more than 10 times.
Interestingly, although retail investors buying ETFs, such as their trading pall (Green Bar in Chart 3) compared to market-wide liquidity in these products. Retail trading is still focused on SPY, accounting for about 80% of all retail prices traded in S&P 500 ETF.
Chart 3: SPY has represented 89% dollars traded by S&P500 ETF since 2017
State Street may still be able to claim asset crowns
Importantly, these are not only S&P 500 ETF in the US market.
In fact, State Street launched another S&P 500 ETF (SPLG) in 2017, earning $ 58 billion of its own assets (and bears low management fees such as IVV and Wu).
Keeping them together, the State Street will still be able to claim for S&P 500 ETF asset crown – at least for now.
