Vanguard Overtakes State Street As Top ETF Provider: 3 Funds In Focus

A historic shift has taken place in the $11 trillion ETF industry, as Vanguard has overtaken State Street to claim the title of the world's largest exchange-traded fund provider.

The Vanguard S&P 500 ETF VOO has emerged as the largest ETF by assets under management (AUM), surpassing the long-dominant SPDR S&P 500 ETF Trust SPY. This highlights the increasing shift towards cost-efficient, passive investing as more investors flock to these strategies.

According to Bloomberg, VOO now holds nearly $632 billion in AUM, having attracted an impressive $23 billion in inflows so far in 2025. In contrast, SPY has experienced significant outflows, losing $10.68 billion in January alone, per data from ETFdb.com.

Vanguard's appeal lies in its cost-efficient structure—VOO charges an annual expense ratio of just 0.03%, significantly lower than SPY's 0.095%.

Also Read: New Treasury ETFs Target Liquidity As Vanguard Expands Fixed-Income Lineup

As Vanguard cements its authority in the ETF space, here are three of its top-performing funds that investors should keep on their radar:

Vanguard S&P 500 ETF

AUM: $632 billion
Expense Ratio: 0.03%
Benchmark: S&P 500 Index
Why It Stands Out: This fund provides broad exposure to the largest U.S. companies and remains a top choice for cost-conscious investors.
Price Performance: The price of the ETF has risen 22.9% in the past year.

Vanguard Total Stock Market ETF VTI

AUM: Over $400 billion
Expense Ratio: 0.03%
Benchmark: CRSP U.S. Total Market Index
Why It Stands Out: VTI offers investors exposure to more than 3,600 stocks across small-, mid-, and large-cap companies, reflecting the entire U.S. stock market. It embodies Vanguard founder John Bogle's philosophy of "buying the haystack" rather than picking individual stocks.
Price Performance: The ETF price has returned 22.3% in the past year.

Vanguard Total International Stock ETF (VXUS)

AUM: Around $77 billion
Expense Ratio: 0.08%
Benchmark: FTSE Global All Cap ex U.S. Index
Why It Stands Out: VXUS provides exposure to over 8,500 international stocks across developed and emerging markets.
Price Performance: The price has gained 8.6% in the past year.

What Future Holds

Vanguard's rise to the top demonstrates how even a percent point difference in costs and slightly wider diversification in stock picking strategy matter significantly. Currently, the firm manages 88 ETFs, with 78 of them following index-based strategies. In recent years, Vanguard has also expanded its actively managed ETF lineup, particularly in the bond sector, while maintaining its reputation for offering some of the lowest fees in the industry.

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