January 18, 2017 12:00 AM

BlackRock and Vanguard bring home the bacon, again

BlackRock's iShares and Vanguard saw record inflows into their ETF businesses in 2016, receiving $107 billion and $94 billion in new business, respectively. Inflows to both managers surged in December amid the stock market rally that followed the election. Vanguard had net inflows in each month of 2016, while iShares saw more volatility and had net outflows in January and May.

iShare's Core S&P 500 fund holds the second largest piece of the market with 9.3% of the total market, followed by Vanguard's Developed Market Index fund with 7.3%. iShare's Core S&P 500 product had net inflows of $13.2 billion in 2016, and iShare's saw significant inflows into its EAFE, midcap equity and high-yield products. Nearly a quarter of Vanguard's ETF flows went into its S&P 500 and developed markets funds.