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