In this article, we will take a look at 25 of the largest ETFs by AUM in the world. If you want to see some more of the largest ETFs by AUM in the world, go directly to 5 Largest ETFs by AUM in the World.
ETFs, or exchange-traded funds, represent a basket of securities that investors can buy or sell through a brokerage on stock exchanges such as the NYSE or NASDAQ.
When chosen correctly, ETFs can help diversify investment portfolios and potentially lower risk. They can also help investors gain greater access to different markets around the world including more difficult to access markets such as emerging markets.
ETFs have some advantages. While most mutual funds can only be bought or sold once a day, ETFs can be bought or sold at anytime during market hours.
Another potential advantage of ETFs is that many ETFs tend to have lower management fees than mutual funds. According to BlackRock, Inc. (NYSE:BLK), the company's iShares Core ETFs "average about one-tenth the net expense ratio of most mutual funds. The impact of these cost savings can be meaningful, particularly over time or when market returns are low."
Many ETFs are also transparent and show their underlying investments. This isn't always the case with mutual funds where the portfolio manager might not choose to reveal the investments of the fund.
There are many different types of ETFs including index ETFs, which are designed to track particular indexes such as the S&P 500 or NASDAQ. Other ETF types include sector and industry ETFs which help investors gain exposure to a particular industry such as consumer staples. There are also foreign market ETFs that track non-US market such as European markets or Japan's Nikkei index.
BlackRock, Inc. (NYSE:BLK) is one of the leaders in the ETF industry. Of the 895 hedge funds in our database, 50 had bullish positions in BlackRock, Inc. (NYSE:BLK) at the end of the second quarter. Among them,Harris Associates owned 902,958 shares.
The ETF industry has grown substantially since they were first created.
There is potentially a lot more growth in the future.
In BlackRock, Inc. (NYSE:BLK)'s investor day in 2021, the company said it thought there were decades of growth ahead in ETFs and index investing.
In 2021, ETFs only represented 3% of the total global market in terms of AUM penetration and 5% of the total U.S. market.
The total global ETF AUM increased from $1 trillion in 2010 to $8 trillion in 2020. BlackRock, Inc. (NYSE:BLK) expects it to rise to $15 trillion by 2025.
If an ETF is larger in terms of AUM, there is potential for lower fees due to the economies of scale. With lower fees, it could be possible for investors to realize higher returns.
In terms of performance,many ETFs have not done well in 2022. Due to high inflation, rising rates, and macroeconomic headwinds, the global equity and fixed income indexes fell 20% and 10% respectively in the first half of 2022. If economic data fails to meet expectations, the markets and many ETFs could decline even further.
Nevertheless, long term investors have an opportunity to buy stocks at a cheaper valuation if they choose the right ETFs that include many blue chip holdings.
Photo by Austin Distel on Unsplash
Methodology
For our list of 25 Largest ETFs by AUM in the World, we used ETFDB.com's top 100 ETFs by assets list and took the top 25. Given that market prices change and inflows and outflows also change since the time ETFDB put together the list, the ETF rankings and their AUM might be different on different days. Nevertheless, this list could offer a general idea on the largest ETFs by assets under management in the world.
25. Vanguard Short-Term Corporate Bond Index Fund (NASDAQ:VCSH)
AUM: $41,435,300,000
Vanguard Short-Term Corporate Bond Index Fund (NASDAQ:VCSH) is an ETF that invests primarily in high quality corporate bonds with average maturity of 1 to 5 years. Given that it's a bond fund, it's sensitive to interest rate changes and shares of Vanguard Short-Term Corporate Bond Index Fund (NASDAQ:VCSH) has indeed declined 7.43% year to date as of 9/30/22. Vanguard Short-Term Corporate Bond Index Fund (NASDAQ:VCSH) has a 1.42% average annual return over the last 10 years as of the end of September.
24. Vanguard Total International Stock Index Fund ETF Shares (NASDAQ:VXUS)
AUM: $43,254,700,000
Vanguard Total International Stock Index Fund ETF Shares (NASDAQ:VXUS) is an ETF that "seeks to track the performance of the FTSE Global All Cap ex US Index, which measures the investment return of stocks issued by companies located outside the United States". Given that foreign markets have also been very volatile in 2022 with the Federal Reserve interest rate hikes likely affecting stocks outside the United States as well, Vanguard Total International Stock Index Fund ETF Shares (NASDAQ:VXUS)'s NAV has declined 26.76% year to date as of 9/30/22.
Vanguard Total International Stock Index Fund ETF Shares (NASDAQ:VXUS) has averaged a 3.34% annual return over the last ten years as of the end of September.
23. Vanguard Total International Bond Index Fund (NASDAQ:BNDX)
AUM: $43,898,400,000
Vanguard Total International Bond Index Fund (NASDAQ:BNDX) is an ETF that offers broad exposure across major bond markets outside the US. Given that the Federal Reserve has increased interest rates substantially in 2022,Vanguard Total International Bond Index Fund (NASDAQ:BNDX)'s NAV has declined 12.85% year to date as of 9/30/22. As of the end of September,Vanguard Total International Bond Index Fund (NASDAQ:BNDX) has declined by an average annual rate of 0.03% in the last five years.
22. Vanguard High Dividend Yield Index Fund (NYSE:VYM)
AUM: $43,978,100,000
Vanguard High Dividend Yield Index Fund (NYSE:VYM) is an ETF that"seeks to track the performance of the FTSE® High Dividend Yield Index, which measures the investment return of common stocks of companies characterized by high dividend yields."
Given that bonds have not done well in 2022 given the Federal Reserve interest rate increases, Vanguard High Dividend Yield Index Fund (NYSE:VYM)'s NAV has declined by 13.52% year to date as of 9/30/22.
As of the end of September, Vanguard High Dividend Yield Index Fund (NYSE:VYM) has nevertheless averaged an annual return of 9.92% in the last 10 years.
21. Vanguard Mid Cap Index Fund (NYSE:VO)
AUM: $46,950,000,000
Vanguard Mid Cap Index Fund (NYSE:VO) is an ETF that "seeks to track the performance of the CRSP US Mid Cap Index, which measures the investment return of mid-capitalization stocks."
Given the market volatility in 2022 that's also affected many mid cap stocks, Vanguard Mid Cap Index Fund (NYSE:VO) hasn't done very well.
As of the end of September, Vanguard Mid Cap Index Fund (NYSE:VO) has fallen 25.41% year to date.
Given the growth in the market over the last 10 years, the Vanguard Mid Cap Index Fund (NYSE:VO) has nevertheless averaged a 10 year average annual return of 10.46% as of the end of September.
20. iShares Russell 1000 Value ETF (NYSE:IWD)
AUM: $48,757,600,000
iShares Russell 1000 Value ETF (NYSE:IWD) is an ETF that seeks to track the investment results of an index of large and mid-cap U.S. equities that exhibit value characteristics. The iShares Russell 1000 Value ETF (NYSE:IWD) has an expense ratio of 0.18% and its NAV has declined by 16.93% year to date as of September 29, 2022.
Given the growth in the market in the last 10 years, however, iShares Russell 1000 Value ETF (NYSE:IWD) has done relatively well in the long term with an average annual return of 10.32% in the last 10 years as of August 31, 2022.
19. iShares Russell 2000 ETF (NYSE:IWM)
AUM: $49,480,300,000
iShares Russell 2000 ETF (NYSE:IWM) is an ETF that's designed to track the investment results of an index of U.S. small-capitalization equities. The iShares Russell 2000 ETF (NYSE:IWM) provides investors access to 2,000 small cap domestic stocks. Given small cap funds can be more volatile than the overall market, the iShares Russell 2000 ETF (NYSE:IWM) has fallen 24.68% year to date as of September 29, 2022. As of August 31, iShares Russell 2000 ETF (NYSE:IWM) has averaged an annual return of 9.99% in the last 10 years.
18. SPDR Gold Shares (NYSE:GLD)
AUM: $49,976,300,000
SPDR Gold Shares (NYSE:GLD) is an ETF whose investment objective is to reflect the performance of the price of gold bullion less the Trust's expenses. In terms of expenses, SPDR Gold Shares (NYSE:GLD) has a gross expense ratio of 0.4%. As of August 31, 2022, SPDR Gold Shares (NYSE:GLD)'s NAV is down 5.98% year to date.
In terms of its performance,SPDR Gold Shares (NYSE:GLD) has had around an average annual return of 0% in the last 10 years as of August 31 2022.
17. iShares Core S&P Mid-Cap ETF (NYSE:IJH)
AUM: $57,056,400,000
iShares Core S&P Mid-Cap ETF (NYSE:IJH) is an ETF that seeks to track the investment results of an index of U.S. mid-capitalization equities. As of September 29, 2022, iShares Core S&P Mid-Cap ETF (NYSE:IJH)'s NAV is down 21% year to date due to the broader market weakness.
As of August 31, 2022, the iShares Core S&P Mid-Cap ETF (NYSE:IJH) has averaged an annual return of 11.25% in the last 10 years however.
16. iShares Russell 1000 Growth ETF (NYSE:IWF)
AUM: $57,293,300,000
iShares Russell 1000 Growth ETF (NYSE:IWF) is an ETF that seeks to track the investment results of an index comprised of U.S. large and mid cap equities that exhibit growth characteristics.Given growth stocks can be volatile, iShares Russell 1000 Growth ETF (NYSE:IWF)'s NAV has fallen 29.57% year to date as of September 29, 2022.
As of August 31, 2022, iShares Russell 1000 Growth ETF (NYSE:IWF) has nevertheless averaged an annual return of 14.88% over the last 10 years.
15. iShares Core MSCI Emerging Markets ETF (NYSE:IEMG)
AUM: $57,737,100,000
iShares Core MSCI Emerging Markets ETF (NYSE:IEMG) is an ETF that "seeks to track the investment results of an index composed of large-, mid- and small-capitalization emerging market equities." As of September 29, 2022, iShares Core MSCI Emerging Markets ETF (NYSE:IEMG) is down 27.11% year to date as emerging markets have also been negatively affected by the Federal Reserve interest rate increases.
As of August 31, 2022, iShares Core MSCI Emerging Markets ETF (NYSE:IEMG) has averaged an annual return of 0.77% in the last five years.
14. Vanguard Dividend Appreciation Index Fund (NYSE:VIG)
AUM: $58,550,100,000
Vanguard Dividend Appreciation Index Fund (NYSE:VIG) is an ETF that "seeks to track the performance of the S&P U.S. Dividend Growers Index."
As of 9/30/2022, Vanguard Dividend Appreciation Index Fund (NYSE:VIG) has fallen 20.11% year to date. Vanguard Dividend Appreciation Index Fund (NYSE:VIG)has a 10.74% average annual return over the last 10 years as of the end of 9/30/22.
13. iShares Core S&P Small-Cap ETF (NYSE:IJR)
AUM: $60,658,200,000
iShares Core S&P Small-Cap ETF (NYSE:IJR) is an ETF that "seeks to track the investment results of an index composed of small-capitalization U.S. equities." As of September 29, 2022, iShares Core S&P Small-Cap ETF (NYSE:IJR)'s NAV is down 22.73% year to date.As of August 31, 2022, iShares Core S&P Small-Cap ETF (NYSE:IJR) has averaged an annual return of 11.46% over the last 10 years.
12. Vanguard FTSE Emerging Markets Index Fund ETF Shares (NYSE:VWO)
AUM: $63,886,600,000
Vanguard FTSE Emerging Markets Index Fund ETF Shares (NYSE:VWO) is an ETF whose "goal is to closely track the return of the FTSE Emerging Markets All Cap China A Inclusion Index."
As of September 30, 2022, Vanguard FTSE Emerging Markets Index Fund ETF Shares (NYSE:VWO)'s NAV is down 23.99% year to date.
In the last 10 years, Vanguard FTSE Emerging Markets Index Fund ETF Shares (NYSE:VWO) has averaged an annual return of 1.44%.
11. Vanguard Growth Index Fund (NYSE:VUG)
AUM: $69,017,500,000
Vanguard Growth Index Fund (NYSE:VUG) is an ETF that "seeks to track the performance of the CRSP US Large Cap Growth Index."
As of September 30, 2022, Vanguard Growth Index Fund (NYSE:VUG) is down around 33% year to date. As of the end of September, however, Vanguard Growth Index Fund (NYSE:VUG) still has an average annual return of 12.71% over the last 10 years. Given its AUM, it ranks #11 on our list of 25 Largest ETFs by AUM in the World.
10. iShares Core MSCI EAFE ETF (BATS:IEFA)
AUM: $76,827,800,000
iShares Core MSCI EAFE ETF (BATS:IEFA) is an ETF that "seeks to track the investment results of an index composed of large-, mid- and small-capitalization developed market equities, excluding the U.S. and Canada."
As of October 3, 2022, iShares Core MSCI EAFE ETF (BATS:IEFA)'s NAV is down 26.51% year to date. In the last 5 years, iShares Core MSCI EAFE ETF (BATS:IEFA) has averaged an annual return of 1.65% as of August 31, 2022.
9. iShares Core U.S. Aggregate Bond ETF (NYSE:AGG)
AUM: $78,528,900,000
iShares Core U.S. Aggregate Bond ETF (NYSE:AGG) "seeks to track the investment results of an index composed of the total U.S. investment-grade bond market."
Given the rise in interest rates,iShares Core U.S. Aggregate Bond ETF (NYSE:AGG)'s NAV has fallen 13.77% year to date as of October 3, 2022.
As of August 31, 2022, iShares Core U.S. Aggregate Bond ETF (NYSE:AGG) has averaged an annual return of 1.3% over the last 10 years.
8. Vanguard Total Bond Market Index Fund (NASDAQ:BND)
AUM: $80,392,900,000
Vanguard Total Bond Market Index Fund (NASDAQ:BND) is an ETF that seeks to "track the performance of a broad, market-weighted bond index". Since interest rates have risen more than expected,Vanguard Total Bond Market Index Fund (NASDAQ:BND) has fallen 13.57% year to date as of 10/4/22.
As of the end of September, Vanguard Total Bond Market Index Fund (NASDAQ:BND) has an average annual return of 0.83% over the last 10 years.
7. Vanguard FTSE Developed Markets Index Fund ETF Shares (NYSE:VEA)
AUM: $85,658,300,000
Vanguard FTSE Developed Markets Index Fund ETF Shares (NYSE:VEA) is an ETF that "seeks to track the investment performance of the FTSE Developed All Cap ex US Index."
As of 10/4/22, Vanguard FTSE Developed Markets Index Fund ETF Shares (NYSE:VEA)'s NAV is down 23.14% year to date. As of the end of September, Vanguard FTSE Developed Markets Index Fund ETF Shares (NYSE:VEA) has averaged an annual return of 4.06% over the last 10 years.
6. Vanguard Value Index Fund (NYSE:VTV)
AUM: $92,776,100,000
Vanguard Value Index Fund (NYSE:VTV) is an ETF that "seeks to track the performance of the CRSP US Large Cap Value Index, which measures the investment return of large-capitalization value stocks."
As of 10/4/22, Vanguard Value Index Fund (NYSE:VTV)'s NAV is down 9.64% year to date. As of the end of September, Vanguard Value Index Fund (NYSE:VTV) has an average annual return of 10.5% over the past 10 years. Given its AUM, it is #6 on our list of 25 Largest ETFs by AUM in the World.
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Disclosure: None. 25 Largest ETFs by AUM in the Worldis originally published on Insider Monkey.
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