The development of US ETFs can be traced back to 1993, when the S&P 500 index tracking ETF (ticker: SPY) was listed on a U.S. exchange for the first time.
In April 2000, the size of the Vanguard 500 Index Fund surpassed Fidelity’s famous Magellan Fund for the first time (note: Peter Lin was a fund trader), becoming the world’s largest mutual fund, with a scale of US$107.2 billion.
How big is the ETF?
The size of global ETFs
As of the end of 2023, the scale of global ETFs is US$10.99 trillion, while global mutual funds have stagnated and stopped growing after hitting a scale of US$26.9 trillion in 2021.
The size of global passive funds (mainly ETFs) has exceeded active funds since March 2023.
Today, the largest stock fund in the world is an index fund, and the largest bond fund in the world is also an index fund.
The size of U.S. ETFs
As of the end of September 2024, the U.S. ETF market size will be US$10 trillion, with more than 3,800 units. It took the ETF ecosystem only 14 years to grow from $1 trillion to $10 trillion.
In March 2023, at least 19% of U.S. stocks will be owned by passive ETFs.
According to data from Morningstar, as of the end of 2020, the size of U.S. public market index funds has approached US$16 trillion. BlackRock, the world’s largest asset management company, estimated in 2017 that approximately $6.8 trillion in private equity used passive investment strategies and was managed in-house or by companies like BlackRock.
The size of China ETFs
As of the end of 2023, the scale of China’s domestic ETFs has exceeded RMB 2 trillion, and the number has exceeded 897; they are still mainly stock-based.
Morgan Asset Management mentioned in the “2021 ETF Innovation and Development Seminar”: “Compared with the total size of U.S. stock ETFs accounting for 6.8% of the total market value of the stock market, the domestic proportion is only 1.3%, and there is still a lot of room for development in the future.” ( Source: WFE, Bloomberg, data as of June 2019.)
The size of Taiwan ETFs
According to statistics from the Taiwan Securities OTC Trading Center, as of the end of August 2024: the scale of Taiwan stock ETFs reached NT$2.8843 trillion.
US ETF Summary
Weights of various categories
Index-tracking, index-enhanced, and active management accounted for 74%, 19%, and 7% respectively.
Investment equities (mainly stocks) and fixed income ETFs account for 70% and 19% respectively.
The trading volume of U.S. stock ETFs accounts for about 30% of the total trading volume of the U.S. stock market, which is higher than the 13%-15% ratio in Europe and the Asia-Pacific region.
Major U.S. ETF vendors
The top five ETFs in terms of asset management size account for 30% of the total market.
BlackRock (ticker: BLK), Vanguard, and State Street Global (ticker: STT) are the three largest ETF managers in the United States, accounting for 75% of the market share.
For this part, please see my other previous post: “How does BlackRock, the world’s largest index and asset management company, make money?”.
Various types of US stock ETFs
Large-cap index ETFs
According to market capitalization, typical representatives of large-cap index ETFs are:
- The ticker tracking the S&P 500 are SPY, IVV, and VOO.
- The ticker tracking the U.S. stock market is VTI.
- The ticker tracking the Nasdaq 100 Index is QQQ.
- The ticker for the S&P MidCap 400 Index, which tracks mid-cap stocks, is IJH.
- The ticker for the S&P SmallCap 600 Index, which tracks small-cap stocks, is IJR.
For details on this part, please see the following posts of mine:
- “Top 10 ETFs and important major US stock market index“
- “US issued ETFs tracking US market is your best bet“
- “S&P 500 vs. Nasdaq 100 index, how to choose a market index?“
- “Querier to Annualized rate of return for S&P 500 Index“
- “Querier to Annualized rate of return for Dow Jones Industrial Average (DJIA) Index“
- “Querier to Annualized rate of return for Nasdaq Index“
- “S&P 500 P/E ratio has been rising in the past century, S&P 500 PE Ratio and Average Querier“
- “Querier to Annualized rate of return for Philadelphia Semiconductor Index (SOX)“
- “A table comparing S&P 500, Nasdaq, Dow Jones, Philadelphia Semiconductor Index over the years since its inception and annualized returns“
Investment Style ETFs
ETFs by investment style:
- Large-cap growth ETF, ticker is VUG
- Large-cap value ETF, ticker is VTV
Individual industry ETFs
Representative ETFs in the industry sector category cover 11 primary industries of the S&P 500 Index, such as:
- Information Technology (ticker: XLK)
- Healthcare (ticker: XLV)
- Finance (ticker: XLF)
- Energy (ticker: XLE)
Investment type ETF
Typical representatives of investment theme ETFs include:
- Artificial intelligence (ticker: BOTZ or AIQ)
- Infrastructure (ticker: PAVE)
- Shareholdings of members of Congress (ticker for Democratic members of Congress: NANC, ticker for Republican members of Congress: KRUZ)
- Cloud computing (ticker: SKYY)
- Cybersecurity (ticker: HACK)
- Internet of Things (ticker: SNSR)
- Industrial Revolution (ticker: ARKK)
- Automation and Robotics (ticker: ARKQ)
- Gene sequencing (ticker: PBE)
- Lithium battery (ticker: LIT)
- Bitcoin (ticker: IBIT)
Factor Type ETFs
Typical representatives of strategy factor ETFs include:
- Value Factor (ticker: IWD)
- Growth Factor (ticker: IVW)
- Low volatility factor (ticker: SPLV)
- Quality factor (ticker: QUAL)
- Dividend Factor (ticker: VIG)
- Equilibrium Factor (tickerS:RSP)
- Momentum Factor (ticker: MTUM)
Table for US stock investment toolset
Special reminder
For all major market index annualized return query tools listed in the table; including Taiwan Stock Index, Dow Jones Index, S&P 500 Index, Nasdaq Index, Philadelphia Semiconductor Index, not only annualized return query , you can also query the index return rate in any year──just enter the year you want to query in both the start and end fields.
The following is a list of must-have US stock investment free tools developed by Andy Lin:
For the detail, please see “Free online US stock investment toolset＂.
Related articles
- “Best 10 years returned industry-specific ETFs“
- “The power of index ETFs underestimated“
- “Consequences of Index Fund and ETF Regulations and Restrictions“
- “Stocks Better than the S&P 500, Procter & Gamble (P&G) “
- “Investors turn to passive investment funds ETF and abandoning active investment funds“
- “Global stock markets performance comparision over the past 30 years in a table“
- “S&P 500 vs. Nasdaq 100 index, how to choose a market index?“
- “S&P 500 index next year performance, based on last century record“
- “Return rate comparison among Buffett portfolio, Berkshire stock price, S&P 500 over the years“
- “2022 S&P 500 Constitutent Stocks Performance“
- “Stocks Better than the S&P 500, Procter & Gamble (P&G)
- “S&P 500 vs. Nasdaq 100 index, how to choose a market index?“
- “S&P 500 index, the only stock worth holding forever“
- “Querier to Annualized rate of return for S&P 500 Index“
- “Querier to Annualized rate of return for Dow Jones Industrial Average (DJIA) Index“
- “Querier to Annualized rate of return for Nasdaq Index“
- “S&P 500 P/E ratio has been rising in the past century, S&P 500 PE Ratio and Average Querier“
- “Querier to Annualized rate of return for Philadelphia Semiconductor Index (SOX)“
- “A table comparing S&P 500, Nasdaq, Dow Jones, Philadelphia Semiconductor Index over the years since its inception and annualized returns“
- “Investors should care annualized rate of return (IRR), How to calculate?“
- “Most investors should invest ETFs tracking broader market“
- “US issued ETFs tracking US market is your best bet“
- “Top 10 ETFs and important major US stock market index“
- “Querier to Annualized rate of return for Taiwan Stock Exchange“
- “How does BlackRock, the world’s largest index and asset management company, make money?”
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