Worldwide internally managed ETF assets grew significantly in the 12-month period ended June 30, up 21.4% to $1.52 trillion, according to Pensions & Investments' annual survey of managers of indexed and ETF assets.
The three major ETF providers continued to dominate the survey: BlackRock Inc.'s iShares division reported $774.3 billion in assets as of June 30, a 20.1% increase in assets from the previous 12 months; State Street Global Advisors, reported $336.8 billion, a 10.9% increase; and The Vanguard Group Inc. reported $276.6 billion, a 32.9% increase.
Combined, these three control more than 90% of the index ETF marketplace, the survey shows.
There is a significant drop to the next-largest ETF provider in the survey, fourth-ranked Invesco PowerShares Capital Management LLC, which reported $85.1 billion, an 18.5% increase in the firm's assets for the 12-month period.
There is another big gap after Invesco. Fifth-ranked BNY Mellon Investment Management, which subadvises ETFs for WisdomTree Asset Management and other providers, had ETF assets of $26.2 billion. The company had a strong 105.8% increase in indexed ETF assets in the year ended June 30.
The biggest increase among ETF indexed assets in the P&I survey for the year ended June 30 was a smaller provider, Northern Trust Corp.'s FlexShares Exchange Traded Funds, which saw a 383.8% increase to $5.3 billion.
Northern Trust only re-entered the ETF marketplace in late September 2011 after abandoning an effort to get a foothold three years earlier.
Of the top three providers, Vanguard's growth rate of 32.9% for indexed ETF assets, was the most spectacular.
Two factors — strong equity markets and strong inflows into Vanguard ETF products — contributed to the increase, said Joel Dickson, a Valley Forge, Pa.-based principal and senior ETF strategist at Vanguard.
“One, not under our control is that you had a pretty good equity market return, both U.S. and non-U.S., for the last 12 months,” Mr. Dickson said.
“Given that a lot of our ETFs are concentrated in equity products, that certainly helped,” he added.
Data from Vanguard show the company had $50 billion in net ETF inflows in the year ended June 30.
BlackRock's iShares division also experienced strong gains from positive equity markets as well as strong inflows, said Daniel Gamba, head of the iShares Americas institutional business, New York.