Vanguard Sidesteps Record Monthly Outflow for ETFs

September 5th at 9:50am by Tom Lydon

U.S.-listed ETFs saw record outflows in August but Vanguard keeps chugging along and was the only firm among the top five providers to record inflows last month.

According to IndexUniverse, Vanguard attracted $3.8 billion in assets over August. Meanwhile, BlackRock iShares saw $4.3 billion in outflows, State Street Global Advisors saw $19.5 billion in outflows, Invesco PowerShares saw $808 million in outflows and WisdomTree saw $484 million in outflows.

U.S. exchange traded products hold $1.5 trillion of assets, according to data provider XTF.com.

Also notable was a nearly $1.6 billion August inflow at ProShares. Leveraged and inverse ETFs were popular last month despite the overall industry’s record outflow. [Leveraged ETFs Buck Recent Outflow Trend]

BlackRock’s iShares is the largest U.S. ETF provider with $593.8 billion of assets, according to XTF.

Meanwhile, Vanguard has passed State Street as the second-largest ETF manager, if SPDR Gold Shares (NYSEArca: GLD) is not included in State Street’s assets. GLD is technically sponsored by a unit of the World Gold Council while State Street is the ETF’s marketing agent.

Vanguard’s U.S.-listed ETFs hold $292.4 billion, while State Street controls $284.3 billion. XTF assigns the $41.2 billion held in GLD to World Gold Trust Services LLC. [Vanguard Nearing State Street as Second-Largest U.S. ETF Firm]

Vanguard has slashed expense ratios on a number of its products, which helped attract greater investment interest. Over the first seven months of 2013, Vanguard brought in $36 billion in net inflows, compared to iShares with $33.9 billion in new inflows, State Street with $10.3 billion, Invesco PowerShares with $9.4 billion and WisdomTree with $11.8 billion, according data from BlackRock.

In August, U.S.-listed ETFs experienced $17.5 billion in net outflows, reports Jason Kephart for InvestmentNews. [Global ETFs See Record Outflow]

For more information on ETF asset flows, visit our ETF performance reports category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own GLD.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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