There was a time when early leaders in hot areas of financial services could count on maintaining their profit dominance with ease. But now the $7.8 trillion market in US exchange-traded funds (ETFs) is hurtling toward a new order, as BlackRock Inc.’s lead over runner-up Vanguard Group Inc. shrinks to a razor-thin margin.
It’s a turnaround two decades in the making: From its peak of about 60% in 2006, BlackRock has seen its share of the ETF market slip to 32.5%, the lowest since 2001. Although that’s still the highest among all US issuers, Vanguard—which has managed to increase its stake for 21 years straight—now commands 29.5% of ETF assets, Bloomberg data show.
FAQs
Vanguard's popularity with fee-conscious advisers and retail investors is poised to make it No. 1 in the sector within a couple of years.
Is it better to invest in Vanguard or BlackRock? ›
Which platform offers better support for long-term, passive investing? Vanguard is renowned for its commitment to passive investing and is a popular choice for those seeking low-cost, long-term investment strategies. BlackRock offers a variety of options, including a good balance of active and passive options.
Has Vanguard ever closed an ETF? ›
Vanguard closing a US-listed ETF for the first time ever
VFLQ was a very small fund and ultimately inconsequential in the grander scheme of Vanguard's massive suite of ETF offerings, however, it is notable given that Vanguard has never liquidated a US-listed fund in its 21-year history in the ETF space.
What is the relationship between BlackRock and Vanguard? ›
Both Vanguard and BlackRock operate as asset management behemoths, collectively overseeing trillions of dollars in assets. What makes this relationship symbiotic is the unique ownership structure they share.
Can Vanguard go out of business? ›
Vanguard is paid by the funds to provide administration and other services. If Vanguard ever did go bankrupt, the funds would not be affected and would simply hire another firm to provide these services.
Who owns the Vanguard Group and BlackRock? ›
Who Owns BlackRock? BlackRock is publicly owned, with its shares held by various shareholders, including institutional investors like Vanguard Group and State Street Corporation and individual shareholders. The specifics of these shareholders can change over time.
Who is more powerful, Vanguard or BlackRock? ›
Vanguard Surpasses BlackRock for Top Spot in Asset Management Brand Ranking. The Broadridge Fund Brand 50 report shows the influence of brand on third-party fund selection. The Vanguard Group has edged BlackRock Inc. for the top spot in an annual fund investor survey gauging sentiment toward the largest asset managers.
Who owns more Vanguard or BlackRock? ›
Vanguard's bank holdings were valued at an estimated $127.98 billion and BlackRock's at $110.32 billion as of March 29, according to S&P Global Market Intelligence analysis. Vanguard and BlackRock hold stakes in 336 and 334 banks, respectively, out of 338 covered in the analysis.
Is BlackRock a good long-term investment? ›
What do analysts say about BlackRock? BlackRock's analyst rating consensus is a Strong Buy. This is based on the ratings of 11 Wall Streets Analysts.
What happens to my money if an ETF closes? ›
ETFs may close due to lack of investor interest or poor returns. For investors, the easiest way to exit an ETF investment is to sell it on the open market. Liquidation of ETFs is strictly regulated; when an ETF closes, any remaining shareholders will receive a payout based on what they had invested in the ETF.
For most standard, unleveraged ETFs that track an index, the maximum you can theoretically lose is the amount you invested, driving your investment value to zero. However, it's rare for broad-market ETFs to go to zero unless the entire market or sector it tracks collapses entirely.
What ETF is Vanguard liquidating? ›
Vanguard to Liquidate U.S. Liquidity Factor ETF. VALLEY FORGE, PA (September 26, 2022)—Vanguard today announced that the $44.2 million Vanguard U.S. Liquidity Factor ETF will be liquidated in late November.
What is the controversy with Vanguard? ›
Vanguard fined for providing misleading account statements to its customers. June 1 (Reuters) - Vanguard Group, the world's largest issuer of mutual funds, was fined and censured by the Financial Industry Regulatory Authority (FINRA) for errors appearing in about 8.5 million customer account statements.
Who is the biggest shareholder of BlackRock? ›
Laurence D.
Fink is the CEO and co-founder of BlackRock. Along with seven colleagues, he started the company. As of 31 January 2023, he owned 520,126 making him the biggest individual shareholder.
How much is Larry Fink really worth? ›
How long will cod Vanguard last? ›
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While Fidelity wins out overall, Vanguard is the best option for retirement savers. Its platform offers tools and education focused specifically on retirement planning.
How has Vanguard performed over the last 5 years? ›
Fund Performance
The fund has returned 10.10 percent over the past year, 10.32 percent over the past three years, 10.97 percent over the past five years and 11.14 percent over the past decade.
How long has Vanguard been going? ›
Vanguard is an investment company unlike any other. It was founded in the United States in 1975 on a simple but revolutionary idea: that an investment company should manage its funds solely in the interests of its clients. We have stood for low-cost, uncomplicated investing ever since.
