Exchange Traded Funds (ETFs) are becoming more and more popular with traders and investors globally. In the United States, there are currently 2,635 ETFs (as of April 2022). In April 2018, there were 1,880 ETFs in the market, which means in the last 4 years there have been 755 new ETFs added! And the amount invested in these ETFs continues to rise as well. There is currently $6.81 trillion invested in US-based ETFs, compared to $3.45 trillion four years ago, an increase of $3.36 trillion.
However, despite the large amount of ETFs in the market, a small number of funds control a majority of assets. In fact, the top 10 ETFs in the market control 28.5% of all ETF assets ($1.94 trillion)! And while some ETFs are actively traded or others track very specific industries or niches, the largest ETFs track many of the most well known stock and bond indexes. Let’s review the top 10 ETFs in the market (as measured by Assets Under Management):
10. Vanguard Total Bond Market ETF (BND)
This Vanguard ETF tracks an index of investment-grade, taxable fixed-income securities. Per Vanguard, this ETF ‘provides broad exposure to the taxable investment-grade U.S. dollar-denominated bond market, excluding inflation-protected and tax-exempt bonds.’ $10k invested in this ETF 10 years ago would be worth $12.05k today.
- Net Assets: $81.55 billion
- Date founded: April 3, 2007
- Expense ratio: 0.03%
- Yield: 2.08%
- Total holdings: 18,199
- Net fund flows (past year): $13.79 billion
9. iShares Core US Aggregate Bond ETF (AGG)
Similar to BND, this iShares ETF tracks an index of investment-grade, taxable fixed-income securities. The two ETFs are nearly identical and both provide investors access to investment-grade bonds. $10k invested in this ETF 10 years ago would be worth $12.07k today.
- Net Assets: $83.30 billion
- Date founded: September 22, 2003
- Expense ratio: 0.04%
- Yield: 1.86%
- Total holdings: 10,207
- Net fund flows (past year): $6.47 billion
8. iShares Core MSCI EAFE ETF (IEFA)
This iShares ETF tracks MSCI EAFE IMI Index, which consists of small, medium and large sized companies in the developed world outside of the United States and Canada. This ETF has not been around for a full decade yet, but $10k invested in this ETF when it was founded would be worth $17.99k today.
- Net Assets: $98.36 billion
- Date founded: October 18, 2012
- Expense ratio: 0.07%
- Yield: 3.62%
- Total holdings: 3,086
- Net fund flows (past year): $17.14 billion
7. Vanguard Value ETF (VTV)
This Vanguard ETF tracks CRSP US Large Cap Value Index, which consists of large-cap value stocks (in the United States, as the name of the index suggests). $10k invested in this ETF 10 years ago would be worth $33.82k today.
- Net Assets: $102.99 billion
- Date founded: January 26, 2004
- Expense ratio: 0.04%
- Yield: 2.18%
- Total holdings: 352
- Net fund flows (past year): $21.30 billion
6. Vanguard FTSE Developed Markets ETF (VEA)
This Vanguard ETF tracks the FTSE Developed All Cap ex US Index, which consists of small, medium, and large cap value stocks in Canada, Europe and the Pacific region. $10k invested in this ETF 10 years ago would be worth $19.70k today.
- Net Assets: $104.88 billion
- Date founded: July 20, 2007
- Expense ratio: 0.05%
- Yield: 3.12%
- Total holdings: 4,163
- Net fund flows (past year): $17.99 billion
5. Invesco QQQ Trust (QQQ)
This Invesco ETF tracks the Nasdaq-100 Index, which consists of the 100 largest non-financial companies listed on the Nasdaq. $10k invested in this ETF 10 years ago would be worth $57.70k today. Of the ten largest ETFs in the market, QQQ has had the best returns over the last decade.
- Net Assets: $185.00 billion
- Date founded: March 10, 1999
- Expense ratio: 0.20%
- Yield: 0.51%
- Total holdings: 103
- Net fund flows (past year): $23.91 billion
4. Vanguard S&P 500 ETF (VOO)
This Vanguard ETF tracks the S&P 500 Index, which consists of the 500 largest publicly listed companies in the United States. $10k invested in this ETF 10 years ago would be worth $39.37k today.
- Net Assets: $281.78 billion
- Date founded: September 7, 2010
- Expense ratio: 0.03%
- Yield: 1.38%
- Total holdings: 507
- Net fund flows (past year): $45.57 billion
3. Vanguard Total Stock Market ETF (VTI)
This Vanguard ETF tracks the Vanguard Total Stock Market ETF, which consists of nearly every publicly traded company the United States. $10k invested in this ETF 10 years ago would be worth $38.19k today.
- Net Assets: $282.91 billion
- Date founded: May 24, 2001
- Expense ratio: 0.03%
- Yield: 1.34%
- Total holdings: 4,067
- Net fund flows (past year): $28.80 billion
2. iShares Core S&P 500 ETF (IVV)
Similar to VOO, this iShares ETF tracks the S&P 500 Index. $10k invested in this ETF 10 years ago would be worth $39.35k today.
- Net Assets: $325.68 billion
- Date founded: May 15, 2000
- Expense ratio: 0.03%
- Yield: 1.34%
- Total holdings: 504
- Net fund flows (past year): $33.92 billion
1. SPDR S&P 500 ETF Trust (SPY)
This SPDR ETF tracks the S&P 500 Index, similar to IVV and VOO. Due to its heavy trading volume and liquidity, it has a slightly larger expense ratio than the other two ETFs, making it the preferred choice for traders but is slightly less preferable for long term investors. $10k invested in this ETF 10 years ago would be worth $39.13k today.
- Net Assets: $403.20 billion
- Date founded: January 22, 1993
- Expense ratio: 0.09%
- Yield: 1.33%
- Total holdings: 506
- Net fund flows (past year): $24.39 billion