The global ETF industry continues to consolidate, especially in the world’s largest market, the United States.
That is why it is no coincidence that the largest ETFs in the world belong to the market of the leading global power; according to data from MarketScreener based on Bloomberg figures, the three largest ETFs in the world replicate the performance of the S&P 500.
The first is the SPDR S&P 500 ETF Trust, which was the first ETF listed in the U.S. in 1993. Its managed assets recently exceeded 500 billion dollars. Among its top holdings are Microsoft (7%), Apple (5.6%), Nvidia (5%), Amazon (3.7%), Alphabet (2%), Meta Platforms (2.4%), Berkshire Hathaway (1.7%), Eli Lilly (1.4%), and Broadcom (1.3%). Its fees are 0.09%.
The other two giants are the iShares Core S&P 500 ETF and the Vanguard S&P 500 ETF. The former has managed assets of 421 billion dollars, and the latter 404 billion dollars.
In this context, ETFGI, a leading independent research and consulting firm covering trends in the global ETF ecosystem, reported that at the end of May, assets invested in the U.S. ETF industry reached a new record of 9 trillion dollars.
The growth rate of the industry is another highlighted factor in the report; ETFGI notes that the most recent record was 8.87 trillion dollars, recorded just in March of this year. The evolution of assets in 2024 is very positive, as figures show that assets increased by 10.9% so far in 2024, rising from 8.11 trillion at the end of 2023 to the recent 9 trillion.
In May alone, the U.S. ETF industry recorded net inflows of 90.57 billion dollars, bringing the year-to-date total to 358.17 billion dollars, according to ETFGI’s U.S. ETF and ETP industry outlook report.
The net inflows mentioned above, totaling 358.17 billion dollars, are the second highest on record after the 399.1 billion dollars reported in the same period of 2021. Additionally, the report notes that the U.S. industry has reported 25 consecutive months, over two years, of positive net inflows.
This boom in the U.S. ETF market partly explains the surge in equity markets; at the end of May, the S&P 500 index rose 4.96% in May and 11.30% year-to-date in 2024. Excluding the U.S. index, developed markets reported a gain of 3.62% in May and 6.09% year-to-date.
At the end of May, the U.S. ETF industry had 3,531 products from 330 providers listed on three exchanges. ETFGI explains that the substantial inflows into the U.S. market can be attributed to the top 20 ETFs by new net assets, which collectively raised 49.62 billion dollars during May. SPDR S&P 500 ETF Trust (SPY US) raised 8.99 billion dollars, the largest individual net inflow.
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