Ten largest ETFs market cap surges by 47%, adding $540 billion in 12 months

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Data acquired by Finbold indicates that the value of assets under management (AUM) by the ten largest ETFs has surged 47.56% between March 2020, and April 2021, from $1.14 trillion to $1.69 trillion. The ETFs have therefore added $546.63 billion in the last 12 months.

SPDR ranks as the largest ETF, with AUM standing at $356.65 billion, a growth of 34.83% from last year’s figure of $264.51 billion. iShares Core ranks second with $277.58 billion in AUM, while in March last year, the value was $194.92 billion.

Vanguard Total Stock Market ranks third at $239.55 billion, growing from last year’s figure of $132.33 billion. Vanguard S&P 500 is the fourth largest ETF with an AUM value of $220.06 billion from $133.19 billion. Invesco QQQ is the fifth-largest ETF with $164.03 billion in AUM, while in March last year, the value was at $87.74 billion.

Other largest ETFs include Vanguard FTSE Developed Markets ($98.46 billion), iShares Core MSCI EAFE ($91.47 billion), iShares Core U.S. Aggregate Bond ($86.97 billion), Vanguard FTSE Emerging Markets ($80.59 billion), and iShares Core MSCI Emerging Markets ($80.48 billion).

Elsewhere Invesco QQQ emerged as the biggest gainer by 86.95%. Vanguard Total Stock Market ETF is the second biggest gainer by 81%.

Young people and retail investors drive ETF market growth

The report highlights some of the drivers behind the growth in the ETF market. According to the research report:

“With ETF markets booming during the coronavirus pandemic, millennials have also been a key driver to the sector’s growth. The new generation of investors has explored the index funds to bet on market rallies and global trends. In this case, young people who are not familiar with the operations of the financial markets are well-served by using a passive income management approach, and ETFs offer the solutions. ETFs also make it possible to build a diversified portfolio with relatively low investment amounts making it suitable for young people.”

With the surge, the ETF has shattered predictions that the sector might witness massive corrections in the event of a financial crisis.


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