Exchange-traded fund AUM in 2016

etfassetsExchange-traded funds (ETFs)  continued a long-term trend of asset growth in 2016. As most ETFs are passively managed, this growth has made a considerable contribution to the influx of investor assets into passively managed index funds over the past few years.

ETF.com tracks daily ETF provider asset flows and  assets under management  in their ETF League Table. At year end, assets under management by ETF providers totaled more than  2.556  trillion dollars.

The US market is dominated by the three behemoth exchange-traded fund providers: BlackRock iShares; Vanguard;  and  State Street Global Advisors. These three firms managed  2.098 trillion dollars of ETF assets in 2016. This accounts for 82% of all EFT assets under management in the United States. During the first two weeks of 2017 BlackRock became the first provider to pass one trillion dollars of assets under management.

The ETF League Table documents 78 firms issuing exchange-traded funds. The table below divides these firms into deciles. The market dominance of the large firms is clearly evident.

EFT Providers AUM

Decile AUM mm Market weight
1 2,381,335.89 93.14%
2 124,585.25 4.87%
3 33,098.79 1.29%
4 10,730.02 0.42%
5 4,443.05 0.17%
6 1,650.06 0.06%
7 641.66 0.03%
8 237.27 0.01%
9 76.80 0.00%
10 10.46 0.00%
Totals 2,556,798.79 100.00%

 Long-term trends

The following table shows the year-to year growth of the US exchange-traded fund market from 2000 through 2016.

 image24

Notes

About

Barry Barnitz, administrator of both the Bogleheads® wiki and of Financial Page, a Bogleheads® blog. In addition I serve as an administrator of finiki, the Canadian financial wiki, and as an administrator of the John C. Bogle Center for Financial Literacy site.

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