According to Financial Research Corp., Vanguard exchange traded funds (ETFs) gathered $8 billion in new cash from January through June, which is 40% more than the past year. Its total ETF assets are at $32 billion. The company attributes the increase to its low fees that average 0.18% compared to the industry average of 0.41%.
Vanguard is currently the best-selling mutual fund provider. It amassed $45.6 billion in new cash from January through June. This tops the previous four-year leader, American Funds, that drew $43 billion in inflows, reports Joe Morris of Ignites. Barclays Global Investors came in third with $43 billion.
Although Vanguard is the top mutual fund provider, it still lags behind Barclays as the top ETF provider. In the past year, the company has launched new ETFs in direct competition with Barclays. If this continues, will we see Vanguard as the top ETF provider? Probably not anytime soon as Barclays commands 71% of ETF assets.
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.