Bigger isn’t always better, but when it comes to the largest exchange-traded funds, or ETFs, on Wall Street, there are certainly some benefits that come with being the biggest option.
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With a huge share of assets under management, or AUM, it’s easier for the largest ETFs to lower their fees and pass on savings to investors. Their diverse holding sizes and variety of options between stocks and bonds can also make ETFs an attractive investment for both expert and newbie investors.
These ETF giants are among the most popular and efficient ways to invest:
| Exchange-traded fund | Expense ratio | Net assets of fund* |
| Vanguard Total Stock Market ETF (ticker: VTI) | 0.03% | $1.4 trillion |
| Vanguard S&P 500 ETF (VOO) | 0.03% | $937.1 billion |
| SPDR S&P 500 ETF Trust (SPY) | 0.095% | $493.4 billion |
| iShares Core S&P 500 ETF (IVV) | 0.03% | $399.3 billion |
| Vanguard Total International Stock ETF (VXUS) | 0.07% | $384.3 billion |
| Vanguard Total Bond Market ETF (BND) | 0.03% | $302.4 billion |
| Invesco QQQ ETF (QQQ) | 0.20% | $230.5 billion |
| Vanguard Growth ETF (VUG) | 0.04% | $191.5 billion |
| Vanguard FTSE Developed Markets ETF (VEA) | 0.05% | $170.5 billion |
*Based on fund website data accessed Dec. 28, 2023.
Vanguard Total Stock Market ETF (VTI)
Current assets: $1.4 trillion
While S&P 500 funds surely expose you to a wide swath of the U.S. stock market, VTI is benchmarked to a much deeper list of stocks with nearly 3,800 total positions. Granted, it’s weighted toward the biggest U.S. stocks with about 13% of the portfolio in familiar names such as Apple Inc. (AAPL) and Microsoft Corp. (MSFT) that dominate S&P ETFs. That said, there is a bit more diversification here. With an expense ratio of 0.03%, or $3 for every $10,000 invested, and a massive AUM, this broader list of stocks doesn’t come with many structural drawbacks.
Vanguard S&P 500 ETF (VOO)
Current assets: $937.1 billion
Vanguard’s VOO offers investors an ETF that tracks companies listed in the S&P 500 index. The S&P 500 index consists of the leading corporations in the United States, making this ETF sizably smaller than No. 1 on this list. VOO consists of 505 stocks, a few of the most known being Microsoft, Apple, Amazon.com Inc. (AMZN) and Tesla Inc. (TSLA). While other issuers also offer ETFs that track the S&P 500, Vanguard’s VOO towers over the competition with more than $937 billion in assets. Again, this Vanguard ETF also boasts a lower-than-average expense ratio of 0.03%.
SPDR S&P 500 ETF Trust (SPY)
Current assets: $493.4 billion
SPDR S&P 500 ETF Trust, formed in 1993, was the first ETF available in the U.S. market and is one of the most established and respected ETFs on the planet. While it may not be the leader in AUM, investors have been using this ETF for its liquidity and diversification purposes since its inception 30 years ago. Benchmarked to the popular S&P 500 index, the fund’s size and liquidity make SPY the simplest and most effective way to play U.S. stocks in a single position. The majority of this index ETF consists of holdings from information technology, financial and health care sectors and has an annual expense ratio of 0.095%.
iShares Core S&P 500 ETF (IVV)
Current assets: $399.3 billion
Of course, there are other S&P 500 funds out there among the largest ETFs. No. 4 on the list is the iShares Core S&P 500 ETF that is pretty much the exact same investment as SPY in terms of recent performance and current holdings. The difference, other than assets under management, is that IVV charges just 0.03% in annual expenses. That doesn’t sound like a big difference, but it can add up over time or if you have a large nest egg invested. Now that iShares has met Vanguard’s VOO with its 0.03% expense ratio, you may wonder why there are multiple ETFs that do the same thing and two of which offer the exact same fee structure. Well, based on your investment platform, these ETFs may actually be “free” to trade in either your individual retirement account or taxable investing account, depending on what perks your broker offers.
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Vanguard Total International Stock ETF (VXUS)
Current assets: $384.3 billion
Shifting the focus from ETFs that primarily hold U.S.-based companies, the fifth largest ETF is Vanguard’s Total International Stock ETF that tracks companies based outside the United States. This ETF aims to monitor the performance of the FTSE Global All Cap ex US Index, largely comprised of European, Pacific and emerging markets. With broad exposure to more than 8,500 foreign stocks within a single ETF, an investor with a higher risk tolerance may want to consider VXUS as a diversification tool in their portfolio. VXUS has an expense ratio of 0.07%, which is lower than the expense ratio of similar funds.
Vanguard Total Bond Market ETF (BND)
Current assets: $302.4 billion
No. 6 on the list is yet another offering from Vanguard, but this time with a key difference: stocks versus bonds. The Vanguard Total Bond Market ETF tracks a broad selection of bonds, including the taxable investment-grade U.S. dollar-denominated bond market, excluding inflation-protected and tax-exempt bonds. Since the other ETFs that made the list are weighted heavily in stocks, you may be curious why this could be an appealing option to inventors. BND comprises more than 10,700 bonds and is generally considered a lower risk ETF suitable for investors seeking a longer-term investment. ETFs that consist solely of bonds could help hedge against the risks associated with investing in stocks. BND charges just 0.03% in annual expenses.
Invesco QQQ ETF (QQQ)
Current assets: $230.5 billion
The QQQ fund is an ETF offered by Invesco, which sits at No. 7 on this list. This fund is benchmarked to the Nasdaq-100, giving investors access to the largest nonfinancial companies listed on the Nasdaq. These companies are on the cutting edge of innovation in sectors such as technology, consumer discretionary and health care. When comparing the 10-year growth of a $10,000 investment in Invesco’s QQQ to the S&P 500 index, QQQ’s return outshines that of the S&P 500 by almost $20,000. This alone makes QQQ an attractive option for those seeking long-term investment opinions. The fund comes with the highest expense ratio on this list at 0.2% annually.
Vanguard Growth ETF (VUG)
Current assets: $191.5 billion
The Vanguard Growth ETF (VUG) is one of Vanguard’s higher-risk ETFs, with a focus on tracking a benchmark index that measures the investment return of large-capitalization growth stocks in the United States. Investors seeking an ETF chock full of companies with the potential for superior growth may take interest in VUG. On the other hand, the growth potential, or lack there-of, is also what heightens the risk of this ETF. VUG consists of more than 220 stocks, but Apple, Microsoft and Amazon make up more than 30% of this fund alone. That’s part of the reason more than half of the fund consists of technology companies. VUG has an expense ratio of 0.04%.
Vanguard FTSE Developed Markets ETF (VEA)
Current assets: $170.5 billion
This international Vanguard fund is one of the few globally focused names on this list of the largest ETFs, offering access to the entirety of the “developed” marketplace (excluding the United States). That means the fund holds a large number of established European and Japanese firms, plus some based in Canada, Australia, other parts of Asia and even Israel. Setting itself apart from other ETFs that have a primary focus on only large-cap companies, VEA includes small-cap and mid-cap companies too. You will recognize many of the more than 4,000 names in this fund, such as Nestle SA (NSRGY), Novartis AG (NVS) and Toyota Motor Corp. (TM), which are known in America but happen to be headquartered overseas. The ETF’s expense ratio is 0.05%.
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Update 12/28/23: This story was previously published at an earlier date and has been updated with new information.
