5 Biggest ETF Companies (2024)

FAQs

Who are the big 5 ETF issuers? ›

Investors can choose from a variety of ETFs that trade globally. BlackRock's iShares is the largest provider of ETFs as calculated by assets under management. Other major ETF providers include Vanguard, State Street, Invesco, and Charles Schwab.

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

You only need one S&P 500 ETF

You could be tempted to buy all three ETFs, but just one will do the trick. You won't get any additional diversification benefits (meaning the mix of various assets) because all three funds track the same 500 companies.

The majority of individual investors should, however, seek to hold 5 to 10 ETFs that are diverse in terms of asset classes, regions, and other factors. Investors can diversify their investment portfolio across several industries and asset classes while maintaining simplicity by buying 5 to 10 ETFs.

SPDR is an acronym for the Standard & Poor's Depositary Receipts, the former name of the ETF. It is designed to track the S&P 500 stock market index. This fund is the largest and oldest ETF in the world.

What is the largest US value ETF? ›

The largest Value ETF is the Vanguard Value ETF VTV with $96.81B in assets. In the last trailing year, the best-performing Value ETF was EWJV at 8.46%. The most recent ETF launched in the Value space was the BlackRock Large Cap Value ETF BLCV on 05/19/23.

The largest U.S. ETF is the SPDR S&P 500 ETF Trust SPY with $397.47B in assets.

Both can track indexes as well, however ETFs tend to be more cost effective and more liquid as they trade on exchanges like shares of stock. Mutual funds can provide some benefits such as active management and greater regulatory oversight, but only allow transactions once per day and tend to have higher costs.

What is an inverse ETF? An inverse ETF is set up so that its price rises (or falls) when the price of its target asset falls (or rises). This means the ETF performs inversely to the asset it's tracking. For example, an inverse ETF may be based on the S&P 500 index.

The Satrix 40 ETF tracks the performance of the FTSE/JSE Top 40 index which includes the 40 largest companies on the JSE, ranked by investable market cap. The ETF aims to accurately replicate the index by holding all constituents in the exact index weighting. Distributions are made quarterly.

As of January 16, 2023, State Street's SPDR S&P 500 ETF Trust was the highest valued exchange traded fund (ETF) globally, with a market capitalization of over 365 billion U.S. dollars.

SPDR S&P 500 ETF (SPY)

The State Street SPDR S&P 500 ETF is not only the oldest U.S. listed exchange-traded fund, but it also typically has both the largest assets under management (AUM) and highest trading volume of all ETFs.

ARK Innovation ETF (ARKK)

ARKK stock has just 28 positions, and its top 10 holdings account for 63.8% of assets, so it's a fairly concentrated bet on Tesla and other “disruptive technology” stocks like Coinbase and Block.

How long should you hold an ETF? ›

Holding period:

If you hold ETF shares for one year or less, then gain is short-term capital gain. If you hold ETF shares for more than one year, then gain is long-term capital gain.

ETFs can provide an easy way to be diversified and as such, the investor may want to have 75% or more of the portfolio in ETFs." To that end, Conzo says a more sophisticated investor may have additional needs.

On the other hand, having too many ETFs can lead to over-diversification and excessive fees, as well as potential underperformance if the ETFs are not chosen carefully.

Short-term bond ETFs

This kind of bond ETF gives exposure to bonds with a short maturity, typically no more than a few years. These bond ETFs won't move much in response to changes to interest rates, meaning they're relatively low risk.

The best time to buy ETFs is at regular intervals throughout your lifetime. ETFs are like savings accounts from back when savings accounts actually paid you interest. Think back to a time when you (or your parents!) used to invest in your future by putting money into a savings account.

Ultimately, investors choosing an ETF need to ask 3 questions: What exposure does this ETF have? How well does the ETF deliver this exposure? And how efficiently can I access the ETF? Look at the ETF's underlying index (benchmark) to determine the exposure you're getting.

However, 3x exchange-traded funds (ETFs) are especially risky because they utilize more leverage in an attempt to achieve higher returns. Leveraged ETFs may be useful for short-term trading purposes, but they have significant risks in the long run.

The largest Global Ex-US ETF is the Vanguard Total International Stock ETF VXUS with $56.12B in assets.

What was Vanguard's first ETF? ›

2001: Vanguard brings cost competition to the ETF market

The first one available was Vanguard Total Stock Market ETF, which began trading on the American Stock Exchange. When we entered the ETF market in 2001, our unique approach lowered costs for investors.

The largest First Trust ETF is the First Trust Value Line Dividend Index Fund FVD with $11.93B in assets. In the last trailing year, the best-performing First Trust ETF was AIRR at 22.15%. The most recent ETF launched in the First Trust space was the FT Cboe Vest U.S. Equity Moderate Buffer ETF - May GMAY on 05/19/23.

Key Takeaways. The SPDR Dow Jones Industrial Average ETF Trust (DIA) is the top (and only) exchange-traded fund tracking the Dow.

For example, investors who want to participate in socially and environmentally conscious asset growth strategies may prefer working with BlackRock, while investors who want a simple long-term strategy to provide retirement income may prefer working with a company such as The Vanguard Group.

Berkshire has a history of outperforming the S&P 500 during recessions, and performing especially well during bear markets, according to data from Bespoke Investment Group. Since 1980, Berkshire shares have beat the broader market over the course of six recessions by a median of 4.41 percentage points.

Three of the most popular ETFs that track the S&P 500 are offered by State Street (SPDR), Vanguard (VOO), and iShares (IVV).

Invesco QQQ — the ETF that tracks the Nasdaq-100 index — has beaten the S&P 500 nine out of the last 10 years. Source: Morningstar Inc. Data begins 10 years prior to the ending date. Fund performance shown at NAV.

ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.

What are 3 disadvantages to owning an ETF over a mutual fund? ›

When it comes to stocks vs. ETFs, one is not better than the other. They are both solid ways to invest your money depending on your interest and goals. In fact, you can do both to further diversify your portfolio.

Stock prices tend to fall in the middle of the month. So a trader might benefit from timing stock buys near a month's midpoint—the 10th to the 15th, for example. The best day to sell stocks would probably be within the five days around the turn of the month.

So when is the ideal time? "Middle of the day is generally best, and if there are international (European) securities in the ETF, trading in the morning will ensure you get prices closest to fair value," Nadig explains. Now that you know what time of day is best, let's look at what kind of order you're planning on.

"Around September or October, the investor can buy the major market index ETFs: SPDR Dow Jones industrial average ETF (ticker: DIA), SPDR S&P 500 (SPY), PowerShares QQQ (QQQ) and iShares Russell 2000 (IWM). And then sell them around the April to May time frame, especially after a nice run-up," Hirsch says.

Companies like BlackRock, Vanguard, Fidelity, State Street, and J.P. Morgan, which are the largest in the U.S. in terms of assets, offer a reasonable jumping-off point. With their massive size, these firms can offer investors a range of products and services.

As of January 16, 2023, State Street's SPDR S&P 500 ETF Trust was the highest valued exchange traded fund (ETF) globally, with a market capitalization of over 365 billion U.S. dollars.

Here is a list of the top companies that are stockholders in BlackRock and their stake percentages: The Vanguard Group, Inc. - 8.1%

Who is the greatest investment of all time? ›

Warren Buffett is often considered the world's best investor of modern times. Buffett started investing at a young age, and was influenced by Benjamin Graham's value investing philosophy.

The largest Financials ETF is the Financial Select Sector SPDR Fund XLF with $28.57B in assets. In the last trailing year, the best-performing Financials ETF was BNKD at 14.82%.

All of these ETFs are listed in the table below. The ETF with the largest weighting of COCA-COLA CO is the Xtrackers MSCI USA Consumer Staples UCITS ETF 1D.

The IRS taxes dividends and interest payments from ETFs just like income from the underlying stocks or bonds, with the income being reported on your 1099 statement. Profits on ETFs sold at a gain are taxed like the underlying stocks or bonds as well.

The largest Socially Responsible ETF is the iShares ESG Aware MSCI USA ETF ESGU with $13.83B in assets. In the last trailing year, the best-performing Socially Responsible ETF was QQMG at 17.34%.

The largest Active Management ETF is the JPMorgan Equity Premium Income ETF JEPI with $25.76B in assets.