Top 10 Largest ETFs In The World By Assets

Exchange-traded funds (ETFs) have become immensely popular in recent years. Unlike mutual funds, ETFs trade on an exchange much like stocks. You can buy and sell an ETF’s shares throughout the trading day. They passively track an underlying index, similar to how index funds work. Depending on the underlying index they are tracking, ETFs could hold assets in stocks, bonds, or commodities. Here we take a look at the top 10 largest ETFs in the world by their assets under management.

There are a few things to keep in mind when investing in ETFs. Those with higher assets under management (AUM) and higher average trading volumes have an advantage over ETFs with lower AUMs and trading volumes. They can track their respective indices more closely, minimizing the tracking error. The higher trading volumes indicate a tighter spread, meaning there is little potential for huge swings in prices.

Besides AUM and trading volume, you should also look at an ETF's expense ratio and tracking records to decide if an ETF is right for you. Expense ratios have been declining in recent years. Some of the most popular ETFs have an expense ratio of under 0.1%. If two or three ETFs tracking the same index have similar expense ratios, it makes sense to go for the one with greater AUM and trading volume.

These are the top 10 largest ETFs in the world based on their assets under management. The ranking is based on data from ETFdb. The AUM of an ETF is calculated by multiplying the number of outstanding shares by the market price per share.

10- iShares MSCI EAFE (EFA), $64.3 billion

BlackRock's EFA is among the world's largest ETFs investing in international stocks. As of February 07, 2020, it has $64.3 billion in assets. EFA tracks the MSCI EAFE Index, which measures the equity market performance of Europe, Australasia and Far East (EAFE). Its expense ratio is 0.32%. EFA has a pretty good average daily trading volume of 22,081,520 shares.

9- Vanguard FTSE Emerging Markets ETF (VWO), $65.3 billion

1 2 3
View single page >> |

Disclaimer: This article is NOT an investment recommendation, Please see our disclaimer - Get our 10 free ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.