The SPDR unit of State Street Corp., the third-largest U.S. ETF issuer, took in less cash in the fourth quarter of 2024 than in the same period in 2023, as investors reduced the amount of money going into the flagship of the company. SPDR S&P 500 ETF (SPY) Trust in more than half.
Boston-based State Street’s ETF unit earned $65 billion in the fourth quarter of 2024, marking a notable drop from $68 billion in the same quarter of 2023, according to the latest company earnings report. Still, that total represents a 75% increase over the third quarter of 2024, when the SPDR unit raised $37 billion.
The first US ETF and currently the world’s largest with $621.4 billion in assets, SPY’s asset growth has slowed as Vanguard’s $603.9 trillion Vanguard S&P 500 ETF (VOO) achieve a greater market share. This last fund has become the second largest in the world, replacing the iShares Core S&P 500 ETF (IVV) in recent days, and is expected to take over as the world’s largest exchange-traded fund, possibly within weeks.
SPY receipts fell to $20.8 billion in the fourth quarter from $46.3 billion in the fourth quarter of 2023. Meanwhile, VOO receipts more than tripled to $45.3 billion in the fourth quarter from $11.9 billion. million dollars from the last quarter of 2023.
SPY costs three times more than VOO to own, with an expense ratio of 0.09% compared to VOO’s 0.03%.
VOO’s momentum, at the expense of SPY, continues this year, Bloomberg Senior ETF Analyst Eric Balchunas posted on X.
“Somehow $VOO is outdoing itself this year with +$13 billion in 11 days to start 2025,” he wrote. “It also represents 25% of all net flows and is only $20 billion away from dethroning $SPY.”
The assets of the entire North American ETF industry increased 61% year over year to $427 billion, State Street noted in its press release.
State Street, which manages $1.29 trillion in 137 ETFs, ranks behind BlackRock Inc. and its iShares unit and Vanguard Group in terms of largest issuers.
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