Vanguard S&P 500 ETF crosses $1 trillion milestone

The record-setting ascent comes just 18 months after the Vanguard fund eclipsed State Street’s SPDR S&P 500 ETF, the industry pioneer launched in 1993. Vanguard’s success is largely tied to its lean 0.03% management fee, which continues to draw capital away from higher-cost alternatives. State Street’s SPY now sits third in the category with $785 billion in assets, trailing both Vanguard and BlackRock.

BlackRock currently holds the second-largest position in the S&P 500 tracking space. Its iShares Core S&P 500 ETF manages $860 billion, matching Vanguard’s 0.03% fee structure. According to Todd Rosenbluth, head of research at VettaFi, the shift reflects a sustained investor preference for cost-efficient, passive exposure to the broader market.