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Russian (RU) Sumit Roy
Thu, May 15, 2025, 5:00 AM 2 min read
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What started as a close race is quickly becoming a rout.
After overtaking the SPDR S&P 500 ETF Trust (SPY) as the world’s largest ETF earlier this year, the Vanguard S&P 500 ETF (VOO) is leaving its competition in the dust.
As of today, VOO has amassed $648 billion in assets under management, giving it a nearly $44 billion edge over SPY, which first lost its crown in February.
The shift has been driven by an enormous divergence in flows. Since the start of the year, investors have poured $59.5 billion into VOO while yanking $24 billion out of SPY—a stunning $83.5 billion gap.
It’s no mystery what’s fueling the move. VOO’s rock-bottom expense ratio of 0.03% is a major draw, especially when compared to SPY’s 0.09% fee. Both funds track the same index, but Vanguard’s version gives investors a three-fold cost advantage, which adds up over time.
But cost alone doesn’t tell the whole story. Even the iShares Core S&P 500 ETF (IVV), which matches VOO’s 0.03% expense ratio, has failed to attract similar attention. IVV has seen just $1.3 billion in inflows year to date, despite being the third-largest ETF in the world, with $587 billion in assets.
The disparity underscores the strength of Vanguard’s brand and the deep loyalty it commands among long-term investors. Even when alternative funds offer identical exposure at the same price, Vanguard’s reputation as an investor-friendly outfit continues to tilt the playing field in its favor.
At this pace, VOO is on track to smash its inflow record from last year, when it brought in $116 billion. With nearly half that total already secured in 2025, the fund’s dominance of the S&P 500 ETF category—and the broader ETF landscape—looks stronger than ever.
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