Part of the reason why Vanguard’s index mutual funds are outpacing its ETFs in terms of inflows could be explained by the 401(k) market. Vanguard is among the most dominant fund providers for employer-sponsored retirement plans and within many 401(k) plans across the U.S., employees do not have exposure to ETFs.
To be clear, that is not Vanguard’s fault and as ETFs continue to make their way into more 401(k) plans, something that is gradually taking place, it is reasonable to presume Vanguard’s brand recognition and low-fee reputation will serve the firm well. [ETFs Gain Retirement Assets]
Even with the ongoing rise of its index mutual funds, five of the top-10 ETFs in terms of 2014 inflows are Vanguard funds. That group is comprised of the Vanguard S&P 500 ETF (NYSEArca: VOO), Vanguard FTSE Developed Markets ETF (NYSEArca: VEA), Vanguard Total Stock Market ETF (NYSEArca: VTI), Vanguard REIT ETF (NYSEArca: VNQ) and theVanguard Total Bond Market ETF (NYSEArca: BND). [A Beloved Dividend ETF]
ETF Trends editorial team contributed to this post.