ETFs: Who are the sector heavyweights?

The latest statistics as of the end of March show that a few major names continue to dominate the rankings, both in terms of assets under management and net inflows.

ETFs are surging from record to record. In Q1, the sector recorded global inflows of $626.42bn, according to research firm ETF GI. This is unprecedented. However, it is also, and perhaps more importantly, worth noting that the market remains extremely concentrated.

58.4% of the market held by the top trio

Today, ETF GI identifies 16,284 products from 994 providers listed on 85 exchanges worldwide. Nevertheless, the market greatly favors the heavyweights. Leading the pack, iShares manages $5,430bn in ETFs, representing 27.1% of the market. Vanguard follows with $4,290bn (21.4% market share), and the bronze medal goes to State Street SPDR with its $1,980bn in assets (9.9%).

In other words, the top trio alone controls 58.4% of the market, leaving just over 40% of assets for the other 991 ETF providers. Most notably, "no other provider represents over 5% of total assets," ETF GI specifies.

$50bn collected by 6 ETFs

Products offered by iShares, Vanguard, or State Street SPDR are also found at the top of the inflow rankings by ETF. In March alone, 20 ETFs accounted for 54% of the $174.4bn in global inflows. Out of them, the top six all originate from these three management companies and collectively surpassed the $50bn mark in inflows (30% of the total), with the State Street SPDR Portfolio S&P 500 taking the top prize with $16.8bn on the clock.

Same observation in Europe

Is the situation different in Europe? At first glance, the market there is also extensive, with $3,290bn managed through 3,683 products offered by 149 providers and listed on 32 stock exchanges. However, positions appear even tighter than on a global scale. At the top, we once again find iShares with a market share of 39.8% ($1,310bn in assets). Its runner-up has a more local footprint - Amundi. The French company controls 12.4% of assets ($407.38bn), followed by Xtrackers and its $332bn (10.1%).

Even though the positions are less balanced than at the global level, the top trio thus represents 62.3% of the market on the continent. ETF GI nonetheless points out that while the 146 other players share under 38% of assets, the largest amongst them are approaching 8%.

Finally, the product-by-product assessment only confirms the very high concentration of the European market. 6 ETFs captured more than $1bn each in March, together accounting for 72.5% of the month's inflows, with the top spot going to the Vanguard FTSE All-World UCITS with $2.45bn in inflows, or 18% of the European monthly total.