State Street Q4 Inflows Dip as SPY Loses Ground to VOO

Last updated: January 19, 2025 5:53 am

By MT HANNACH

3 Min Read

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The SPDR unit of State Street Corp., the third-largest ETF issuer in the United States, generated less cash in the fourth quarter of 2024 than during the same period in 2023 as investors reduced the amount invested in the the company’s flagship product. SPDR S&P 500 ETF Trust (SPY) by more than half.

State Street’s Boston-based ETF unit brought in $65 billion in the fourth quarter of 2024, marking a notable decline from $68 billion in the same quarter in 2023, according to the company’s report. latest earnings report. Still, that total represents a 75% increase from the third quarter of 2024, when the SPDR unit brought in $37 billion.

The world’s first and currently largest U.S. ETF with $621.4 billion in assets, SPY’s asset growth has slowed as Vanguard’s $603.9 trillion Vanguard S&P 500 ETF (VOO) is capturing more and more market share. The latter fund became the second global fund, replacing the iShares Core S&P 500 ETF (IVV) just in recent days, and it is widely expected to become the world’s largest exchange-traded fund, perhaps within weeks.

SPY inflows fell to $20.8 billion in the fourth quarter from $46.3 billion in the final period of 2023. Meanwhile, VOO inflows more than tripled to 45.3 billion in the fourth quarter, compared to $11.9 billion in the last quarter of 2023.

SPY costs three times more to own than VOO, with an expense ratio of 0.09% compared to VOO’s 0.03%.

VOO’s momentum, to the detriment of SPY, continues this year, Eric Balchunas, senior ETF analyst at Bloomberg posted on.

“Somehow $VOO is outdoing itself this year with +$13 billion in 11 days to start 2025,” he wrote. “This also represents 25% of all net flows and at just $20 billion dethrones $SPY.”

Assets across the entire North American ETF industry jumped 61% year-over-year to $427 billion, State Street noted in its press release.

State Street, which manages $1.29 trillion across 137 ETFs, ranks behind BlackRock Inc. and its iShares unit and Vanguard Group in terms of largest issuers.