As a result, smaller ETF firms have been able to thrive by offering funds that fill a specific niche, for example. [ETF Usage Will Double By 2012: Survey]
BlackRock’s iShares takes about 44% of ETF market share in the U.S., followed by State Street which accounts for 24% of the business and Vanguard with 16%.
“Despite the concentration at the top of asset sized ranking, we have seen newer ETF providers make significant inroads, helped by innovative product, strong distribution capability, or lower costs. At mid-year 2011, there were 19 providers with at least $1 billion in ETF assets. Among them, five of these providers had less than $50 million of ETF assets a few years earlier,” according to Tom Graves for Market Scope, an S&P Equity Research report.
Tisha Guerrero contributed to this article.