Vanguard ETF Flows Top BlackRock During Volatile First Half Of 2020

Vanguard Group’s U.S. Exchange Traded Funds (ETFs) attracted inflows of $89 billion U.S. in the first half of the year, surging ahead of industry leader BlackRock Inc.

BlackRock took in an estimated $38 billion U.S., according to Bloomberg Intelligence data. Vanguard’s dominance contrasts with the first half of 2019, when BlackRock led its main rival by about $1.9 billion U.S.

The flows are a victory for Vanguard in the increasingly fierce battle to dominate a more than $4-trillion U.S. market. BlackRock became the fund industry leader with its acquisition of the iShares lineup more than a decade ago, but Bloomberg Intelligence analysts estimate it could be overtaken in size by Vanguard within 10 years — or faster in an extended downturn.

BlackRock’s annual U.S. ETF flows were greater than Vanguard’s from 2014 through 2019, according to Bloomberg data. It still reins in assets, with iShares accounting for about 38% of the U.S. ETF market, compared with 27% for Vanguard’s offerings.

BlackRock lowered fees on three U.S. equity ETFs in June. That included reducing what it charges for its largest product, the iShares Core S&P 500 ETF, to three cents U.S. per $100 U.S. invested from four cents.