There should soon be a new individual ETF asset leader. Only $28 billion separated the three largest U.S. ETFs from one another, as of January 24. The gap might be smaller when you read this. It feels imminent that the asset base of SPDR S&P 500 ETF (SPY ) will be eclipsed by one or both of its peers.
The First ETF is Still the Biggest (For Now)
SPY was the first U.S. listed ETF when it launched, 32 years ago. SPY’s success has led to nearly 4,000 ETFs, many that provide sector or factor slices of the underlying S&P 500 exposure. Other ETFs seek to outperform SPY via security selection. As of January 24, SPY had $635 billion and was the first of the ETFs to cross $600 billion.
The Vanguard 500 ETF (VOO ) launched nearly 17 years after SPY, in 2010. However, it has been gaining ground in recent years. In 2024, VOO set a record for net inflows for a single ETF with $116 billion. Year-to-date through late January, VOO has pulled in an absurdly high $20 billion. VOO had $623 billion in assets as of January 27, 2025.
Meanwhile, the iShares Core S&P 500 ETF (IVV ) came to market in 2000 and recently had $607 billion in assets. IVV’s 2024 was nearly as impressive as VOO, with $87 billion of new money pouring in. Its start of 2025 has been less impressive, with the iShares ETF adding under $500 million. However, in the past year, both VOO and IVV have gained on SPY, which added $27 billion.
All three ETFs track the same S&P 500 index. IVV and VOO have net expense ratios of 0.03%, which is less than SPY’s 0.09% fee. While the asset bases will rise and fall based on fund performance, fund flows will drive the ETFs’ relative standing.
Does Being the ETF King Matter?
SPY is likely to remain the default ETF for many institutional investors and advisors, even when VOO or IVV (or both) pass it in assets under management. Traders usually focus more on the trading volume and spreads of an ETF than the expense ratio or the asset base. SPY is unmatched for its liquidity. Despite nearly 4,000 other ETFs to choose from, including some with lower expense ratios, we are confident that many people will continue to choose SPY to get U.S. equity exposure.
However, for many advisors and retail investors that build asset allocation strategies, VOO or IVV’s strong asset base combined with modest fees will garner attention. We think the newest ETF adopters will turn to what funds are the largest as a starting point.
The SPDR Portfolio S&P 500 ETF (SPLG ) is the fourth S&P 500 ETF available, and is offered by State Street Global Advisors. SPLG has swelled in size in the past year, bringing its assets to $58 billion. The ETF has a 0.02% expense ratio.
Eyes on iShares
BlackRock is the largest ETF provider in the world, with $4 billion in assets. Despite strong competition from Vanguard and State Street Global Advisors, BlackRock’s iShares business also remains on top in the U.S. We believe having the largest U.S.-listed ETF will be particularly important to the firm. We are watching whether iShares will lower the fee for IVV in 2025 to 0.02% in an effort to capture the individual ETF crown.
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