Vanguard is the low-cost provider, and comes in third place for overall U.S. ETF market share at 19%. The providers offers the lowest number of funds, but comes in first for lowest average expense ratio. Also, Vanguard has launched the most ETFs over the past three year period.
Vanguard also has the strongest presence in the U.S.domestic equity ETF sector, with 18 equity based ETFs trading under three years old. Popular funds include the Vanguard 500 Index (NYSEArca: VOO) and the Vanguard Emerging Markets Index (NYSEArca: VWO) which recently went under index changes. [U.S. ETFs Attract $53 Billion in 2013]
PowerShares takes second place for total number of ETFs provided, fourth place for average expense ratio and fourth place for average dividend yield. The Invesco ETF arm accounts for 5% of overall ETF market share. PowerShares has launched about 20 ETFs over the past 3 years, and offers over 100 ETFs in total. [ETF Industry Outlook for 2013]
PowerShares focuses in on alternative indexing methods, which has helped garner investor interest in recent years along with their exposure to thematic indices. The PowerShares Dynamic Large-Cap Value Portfolio (NYSEArca: PWV) and the PowerShares S&P 500 High Dividend Portfolio (NYSEArca: SPHD) are both rated “Overweight” by S&P.
Tisha Guerrero contributed to this article.