ETF insights

On its 30th birthday, the ETF looms large

February 27, 2023

A bar chart compares assets under management (AUM) and net inflows for both mutual funds and ETFs. It shows that while mutual funds currently hold more assets, ETFs have captured most of the net flows over the past 10 years. At the end of 2022, mutual funds had $16.2 trillion in total AUM compared with $6.5 trillion for ETFs. But over the decade ended December 31, 2022, net inflows into ETFs totaled $4.1 trillion, reflecting accelerated growth compared with net outflows from mutual funds of $958 billion over the same 10-year period.
A chart shows three different lines depicting nine years of asset-weighted expense ratio data. The line depicting data industrywide shows the asset-weighted expense ratio falling to 0.18% from 0.27%, while the line depicting industrywide data excluding Vanguard shows asset-weighted expense ratios falling to 0.23% from 0.32%. The third line depicting just Vanguard shows asset-weighted expense ratios falling to 0.06% from 0.10%.
A bar chart shows an almost-uninterrupted increase in average daily trading volume in calendar years from 2012 through 2022. Average daily volume in 2012 was at $46 million, but it began a sharper rise in 2018, when it jumped to $764 million from $420 million in 2017. From there, average daily volume dipped to $690 million in 2019, and then rose sharply to $1.22 billion in 2020, to $1.61 billion in 2021, and to $2.09 billion in 2022.
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