The Top 20 ETFs by Assets
As we head into the final quarter of 2014, I thought it would be interesting to take a look at where investors are putting their money. As of Sept. 30, the top 20 ETFs as measured by assets under management (AUM) account for almost 40% of all assets invested in exchange-traded funds.
Here are a few points of note that I gleaned after analyzing the list of the biggest funds.
- The top 20 ETFs are dominated by U.S. Equity indexed products. I believe this fact speaks to the resurgence of index-based investing, but it also speaks to the lack of diversification outside of the United States.
- Cost seems to be playing a major factor in ETF selection. The cost per year to own 17 of the 20 ETFs is 20 basis points or less.
- While iShares remains the largest provider of ETFs, Vanguard has steadily amassed assets. Leveraging its background in mutual funds, Vanguard is vying to become the index champion with its wide variety of low-cost ETF offerings.
- I believe the diversity and amount of assets allocated within the top 20 show that ETFs are no longer just a hedge fund or day trading tool, but rather sound long-term investment products for any and all investors.
So, which funds made it on to this list? To find out, simply go to Doug Fabian’s Top 20 ETFs Snapshot.
NOTE: Fabian Wealth Strategies is a Securities and Exchange Commission-registered investment adviser, and is not affiliated with Eagle Financial Publications.
Jim Woods is a 30-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.
His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. Read more about Jim Woods.
