U.S. ETF Industry Grew 32% In The Last Year, But Also Got More Concentrated
The five largest exchange-traded fund providers – BlackRock, Vanguard, State Street, Invesco and Charles Schwab – now manage more than 89% of all ETF assets in the U.S., and will very likely be able to increase their combined market share to over 90% by the end of the year. Notably, the top-3 ETF providers account for 82% of the total figure. It should be noted here that the top-three players also account for more than 70% of all ETF assets globally.
Source: U.S. ETF assets by issuer (ETF.com)
The table below has been compiled from data gathered by ETF.com and captures the change in U.S. ETF assets for 5 largest ETF providers in the country over the last five quarters. As seen here, the total size of the U.S. ETF industry has swelled by almost 32% over the last 12 months.
BlackRock’s 29% growth y-o-y is impressive given the sheer size of its asset base, as this represents an increase in U.S. ETF assets by almost $250 billion over the last twelve months. Vanguard’s growth figure also stands out as well above the industry average – something that can be attributed to its popularity in the extremely low-cost core ETF segment. That said, the industry as a whole saw a sizable increase in asset size in Q1 due to a continued improvement in valuation across both debt and equity securities for the period.
The chart below captures Charles Schwab’s total client assets under management, which includes its ETF assets. You can see how changes to Charles Schwab’s asset base affect our price estimate for the company by modifying the chart below.
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