Vanguard Group is luring more money this quarter than any rivals in the ultra-competitive U.S. market for exchange-traded funds.
The $5 trillion money manager's U.S. ETFs absorbed about $17 billion since year-end, meaning it's poised to exceed other issuers for the period — including BlackRock, data compiled by Bloomberg show.
BlackRock is in second place with about $14 billion in U.S. iShares net flows as of March 25, setting up a swap between the two behemoths in the final days of the quarter that hasn't occurred since 2016, the data show.
The duo, which control 65% of the $3.8 trillion U.S. ETF industry, are locked in a brutal competition for investment in their ETFs. BlackRock, the world's largest issuer of the products, has almost $1.5 trillion of assets in its U.S. iShares ETFs. Vanguard is a formidable runner-up, with about $958 billion.
"This is still a largely two horse dominant race in terms of assets," said Todd Rosenbluth, director of ETF research at CFRA.