Vanguard's VOO Set To Overtake SPY As World's Largest ETF After Record January Inflows

A tectonic shift is underway in the global ETF rankings, as Vanguard S&P 500 ETF VOO is on the verge of surpassing State Street's SPDR S&P 500 ETF Trust SPY in assets under management.

This unprecedented shift, which could materialize in the coming weeks, or even days, marks a pivotal moment in the trillion-dollar ETF industry.

VOO has recorded a staggering $20.5 billion in inflows month-to-date through Jan. 29, its largest single-month influx on record, according to data from ETFdb.com.

This surge in investor demand has extended VOO's streak of consecutive monthly inflows to 26, a rare feat that underscores growing confidence in the fund.

In stark contrast, VOO’s two main competitors have struggled to attract capital in January.

SPY has suffered outflows of $10.68 billion, while BlackRock's iShares Core S&P 500 ETF IVV has lost $2.1 billion.

As a result, VOO's AUM has surged to $617 billion, closing in on SPY's $630 billion. If current trends persist, VOO could soon claim the title of the world's largest ETF.

ETF	January 2025 flows ($ bn)	AUM ($ bn)
Vanguard S&P 500 ETF	20.5	617.83
SPDR S&P 500 ETF Trust	-10.68	633.29
iShares Core S&P 500 ETF	-2.09	599.57

Why Is VOO Better Than SPY?

A major factor driving VOO's ascent is its ultra-low expense ratio of 0.03%, which significantly undercuts SPY's 0.09%.

Cost-conscious investors have increasingly favored the cheaper Vanguard offering, leading to a sustained capital migration.

Since VOO's inception in September 2010, its total return performance has narrowly outpaced both SPY and IVV.

VOO has gained 446% over this period, compared to IVV's 443% and SPY's 442%, demonstrating a slight but decisive edge.

Chart: VOO Has Outperformed Key Competitors Since Its Inception

VOO Topped ETF Flows Ranking Over The Last Year

Over the past year, VOO has led the ETF industry in net inflows, attracting an astonishing $127 billion, according to TradingView data. This figure surpasses IVV's inflows by a margin of $50 billion.

Meanwhile, the third-highest inflows have been recorded by the iShares Bitcoin Trust IBIT with $37.6 billion, followed by the Vanguard Total Stock Market ETF VTI at $30.5 billion.

Notably, SPY ranks only fifth, drawing in $30.2 billion, while the Invesco QQQ Trust QQQ, the go-to vehicle for Nasdaq 100 exposure, stands in sixth place with $27.3 billion.

ETF	Flows (1Y)
Vanguard S&P 500 ETF	127.56
iShares Core S&P 500 ETF	77.37
iShares Bitcoin Trust	37.62
Vanguard Total Stock Market ETF	30.53
SPDR S&P 500 ETF TRUST	30.21
Invesco QQQ Trust, Series 1	27.31

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