Which are the three largest ETFs by AUM?

ETFs, like index mutual funds, monitor a benchmark index passively. As a result, the top ETFs have the lowest expense ratios. If you’re looking for an ETF that mirrors the S&P 500 Index, the one with the minor expense ratio is likely to be the best option.  

If the expense ratios are close, you should choose the one with the most assets under management. If you’re searching for the best ETFs to invest in, the largest ETFs by assets under management are a great place to start.  

Unlike their mutual fund siblings, exchange-traded funds (ETFs) with the most money invested in them can have benefits over ETFs with fewer assets under management. 

Total market value of the securities that a person or corporation manages on behalf of clients is known as assets under management (AUM).  

The standards and methods for assets under management differ from firm to firm. Some financial firms calculate AUM by including cash deposits, unit trust, and money.

three largest ETFs by AUM

Others limit it to funds under permissive management, in which the investors deputized trading rights to the corporation. 

One of the most important characteristics when purchasing exchange-traded funds (ETFs) is assets under management. Trading volume, costs, and monitoring records are valuable data points to investigate. Investors avoid buying sparsely traded ETFs, which explains the high holdings and trading volume. 

There is the possibility for more severe price movements when there are fewer investors (implying lower volume) (or what is called the “spread”). ETFs can trade at a mark-up or a discount, just like closed-end mutual funds. The greater the assets and trading volume, the narrower the spread. 

Finally, ETFs with a solid track record are usually preferable to those with a poor track record. The ETF’s tracking record indicates how closely it has followed the benchmark. The better the fund performs, the closer it gets to the bar. 

Returning to the initial premise, ETFs with the most assets under management have more trading volume, lower expenses, and better monitoring. As a result, the most significant feature of the best ETFs to look for is assets under management. 

An ETF’s AUM is calculated by multiplying the shares outstanding by the current market price per share. The value of an ETF’s assets will fluctuate due to changes in the underlying securities’ weight and the formation of new shares or redemption of current shares.  

It’s worth mentioning that the market capitalization of an ETF and the net asset value (NAV) of its underlying securities may differ. The discrepancy results in a discount or a premium in the ETF’s trading price. 

Top 3 ETFs with the highest AUM, according to etfdb.com

Sr NoSymbolNameAUMAverage Daily Share Volume (3 Months)
1SPYSPDR S&P 500 ETF Trust$386,633,000.00112,509,680
2IVViShares Core S&P 500 ETF$310,256,000.008,616,186
3VTIVanguard Total Stock Market ETF$273,050,000.005,093,524

SPDR S&P 500 ETF Trust

IssuerState Street
Expense ratio0.09%
InceptionJan 22, 1993
Index TrackedS&P 500 Index
SegmentEquity US Large Cap
Weighting SchemeMarket Cap

iShares Core S&P 500 ETF

IssuerBlackrock Financial Management
Expense ratio0.03%
InceptionMay 15, 2000
Index TrackedS&P 500 Index
SegmentEquity US Large Cap
Weighting SchemeMarket Cap

Vanguard Total Stock Market ETF

Expense ratio0.03%
InceptionMay 24, 2001
SegmentEquity US Total Market
Weighting SchemeMarket Cap
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