Although
For its part, with $102 billion in assets and 59 ETFs, State Street has a 20% market share and, with $30 billion and 32 ETFs, Vanguard a 6% market share. But they are the second- and third-runners up in the ETF market in the U.S. and believe they can close in on Barclays.
“Those two are really the two other major players, and they are both getting much more serious and becoming much stronger competitors,” said Jim Wiandt, publisher of
As an indication of a shift in the tide, Vanguard attracted $6.3 billion in its ETFs in the first five months of this year, compared to $8.6 billion throughout all of 2006. It also charges much less than Barclays. For example,
Meanwhile, other ETF providers, many of whom have carved out small niches of major indexes, or are weighting them differently to create so-called “enhanced” indexes, are also making strides.