Vanguard Overtakes State Street as Largest ETF

The Vanguard S&P 500 ETF (VOO) has surpassed State Street's SPDR S&P 500 ETF Trust (SPY) to become the world's largest exchange-traded fund, with assets reaching approximately $632 billion. This shift follows significant outflows from SPY, now totaling $16 billion, and consistent inflows to VOO, driven by its lower fees and growing popularity among retail investors. The State Street fund, established in 1993, remains the oldest ETF in the U.S., but Vanguard's competitive pricing has made it a favored choice for cost-conscious investors. As of early 2025, VOO has attracted over $23 billion in new investments. BlackRock's iShares Core S&P 500 ETF (IVV) remains a strong competitor, holding assets of $609.1 billion. The ETF industry's growth underscores a shift towards more cost-effective investment tools amidst rising demand for U.S. equity tracking funds.