Categories: Exchange Traded Funds (ETFs)U.S. Investing

These are the Biggest ETF Kids on the Block

The world of exchange-traded funds (ETFs) is tremendous and rapidly growing. As a result, there is a fund for nearly every niche or idea you can imagine. Investors today have an expansive freedom of choice in this area, yet many make similar choices. As it turns out, there is a relatively small group of funds that hold a very large share of all assets invested in ETFs. Upcoming ETF Talks will elaborate upon the 20 most popular ETFs in the market.

This list of 20 out of the thousands of ETFs available represents 40% of all assets invested in ETFs! This means that they are some of the most well known funds out there. Thus, it’s important that an educated investor be aware of the opportunities that ETFs represent and how they work.

The huge quantity of assets invested in these funds demonstrates how big an impact ETFs have had on investing. These 20 funds hold a combined total of more than $2 trillion. For reference, that’s more than 11% of the United States’ 2013 GDP.

The largest funds on the list tend to follow well-known market indices and invest in the domestic market, such as SPDR S&P 500 ETF (SPY); international markets in general, such as iShares MSCI Emerging Markets Index (EEM); or even both.

Relatively smaller entries further down the list are more diverse. These funds focus on subsectors or specific investment directions, such as Vanguard REIT ETF (VNQ) and iShares S&P MidCap 400 Index (IJH). The table of all these funds, along with data on their 2014 performance and assets held, can be found below.

Ticker	Name	Type	YTD%	Yield (IND)	Assets (MLN)
SPY	S&P 500 SPDRs	Large Cap Domestic	12.09	2.19	201,539
IVV	iShares S&P 500 Index	Large Cap Domestic	12.94	1.78	69,854
EFA	iShares MSCI EAFE Index Fund	Intl/Global Equities	-7.55	1.89	52,833
VTI	Vanguard Total Stock Market ETF	Large Cap Domestic	11.14	2.10	50,550
VWO	Vanguard Emerging Markets ETF	Emerging Market – Broad Market	-2.73	1.74	47,986
QQQ	PowerShares QQQ	Large Cap Domestic	19.33	1.48	40,139
EEM	iShares MSCI Emerg Mkts Index	Emerging Market – Broad Market	-5.77	2.72	31,650
IWM	iShares Russell 2000 Index	Small Cap Domestic	3.51	1.02	29,733
GLD	streetTRACKS Gold Shares	Commodities – Metals/Miners	-2.72	0.00	27,840
IWF	iShares Russell 1000 Growth Index	Large Cap Domestic	12.59	1.14	27,626
VOO	VANGUARD S&P 500 ETF	Large Cap Domestic	12.28	2.16	26,543
VNQ	Vanguard REIT ETF	Real Estate	26.83	5.39	26,522
IWD	iShares Russell 1000 Value Index	Large Cap Domestic	12.11	1.80	25,979
IJH	iShares S&P MidCap 400 Index	Mid Cap Domestic	8.69	1.23	24,317
VEA	Vanguard Europe Asia Pacific	Intl/Global Equities	-7.49	2.49	23,976
BND	Vanguard Total Bond Market ETF	Aggregate Bonds	3.40	2.41	23,940
AGG	iShares Lehman Aggregate Bond	Aggregate Bonds	3.76	2.06	22,945
VIG	Vanguard Dividend Appreciation ETF	Domestic Dividend	8.72	2.24	21,066
XLF	Financial Select Sector SPDR	Financials	13.22	2.04	21,049
LQD	iShares iBoxx $ Liquid Invest Grade Bond	Corp Bonds	4.80	3.36	19,076

Data as of 12/22/14

This table provides a roadmap for the next few months of ETF Talks. When we complete this series, you will be knowledgeable about the most popular funds in the rapidly growing ETF market. Check back next week for a look into SPDR S&P 500 ETF (SPY).

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful ETF Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an e-mail. You just may see your question answered in a future ETF Talk.

In case you missed it, I encourage you to read my e-letter column from last week about an international REIT ETF. I also invite you to comment in the space provided below.

Doug Fabian

Doug Fabian is the Editor of Weekly ETF Report, a free weekly e-newsletter, and the newsletter Successful ETF Investing. He’s also the host of the syndicated radio show, “Doug Fabian’s Wealth Strategies.” Doug also edits the fast-paced trading service ETF Trader’s Edge, for investors who want to take their profits to the next level. Taking over the reins from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert’s Investment Digest. Doug became a member of the “SmartMoney 30” in 1999 — a listing of the most influential individuals in the mutual fund industry. In the feature, SmartMoney magazine exclaims that Doug is the best-known “trend follower” among the $56 billion (and growing) group of financial advisors. In 2001, Doug wrote “Maverick Investing,” published by McGraw-Hill. He also regularly appears at seminars around the country, stands out on the pages of the largest newspapers (The Wall Street Journal, The Los Angeles Times, and The New York Times), and speaks on national television (CNBC, Fox News, and Bloomberg Forum). For more than 35 years, Successful ETF Investing (formerly the Telephone Switch Newsletter and Successful Investing) has produced double-digit percentage annual gains. Doug has become known for his expert knowledge and timely use of innovative tools, such as exchange-traded funds, bear funds, and enhanced-index funds to profit in any market climate. For more information about Doug’s services, go to http://www.fabian.com/