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State Street Corp.’s SPDR unit, the third-largest U.S. ETF issuer, drew less cash in the fourth quarter of 2024 than in the same period in 2023 as investors reduced the amount of money it put into the flagship of the company. SPDR S&P 500 ETF Trust (SPY) by more than half.
Boston-based State Street’s ETF unit earned $65 billion in the fourth quarter of 2024, a sharp decline from $68 billion in the same quarter of 2023, the company said. latest earnings report. Still, that total represents a 75% jump from the third quarter of 2024, when the SPDR unit earned $37 billion.
America’s first ETF and currently the world’s largest with $621.4 billion in assets, SPY’s asset growth has slowed with Vanguard’s $603.9 trillion. Vanguard S&P 500 ETF (VOO) . take more market share. The latter fund has become the second largest in the world, replacing the iShares Core S&P 500 ETF (IVV) in the past few days, and is expected to take over the world’s largest trading fund, possibly within weeks.
SPY inflows fell to $20.8 billion in the fourth quarter from $46.3 billion in the final period of 2023. Meanwhile, VOO inflows more than tripled to $45.3 billion in the fourth quarter from $11.9 billion in the last quarter of 2023.
SPY costs three times more to own than VOO, charging an expense ratio of 0.09% compared to VOO’s 0.03%.
VOO’s momentum, at the expense of SPY, continues this year, Eric Balchunas, senior ETF analyst at Bloomberg published in X.
“Somehow $VOO is beating itself this year with +$13M in 11 days to start 2025,” he wrote. “It’s also 25% of all net flows and only $20 million to dethrone $SPY.”
Assets across the entire US ETF industry rose 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.
