If you’re an owner of an exchange-traded fund (ETF) or index fund, chances are they are from either Vanguard or Blackrock. These two companies are the powerhouses in the industry.
Vanguard was established in 1975 by Jack Bogle, who believed that a mutual fund company should not have outside owners. Instead, shareholders of the Vanguard Group own the company’s different funds.
Blackrock started in 1988 with eight people in a single room who shared a determination to put clients’ needs first. By 1999, Blackrock rapidly grew to $165 billion in assets under management and then went public on the New York Stock Exchange.
The Vanguard and Blackrock funds are the Vanguard 500 Index Fund ETF (VOO), and iShares Core S&P ETF (IVV) are two of the most popular funds.IVV has more assets under management with $326.25 billion vs. VOO’s $272.97 billion. The underlying index for both is, of course, the S&P 500.
VTI and ITOT are similar but have more significant differences than VOO vs. IVV. For example, the assets under management for VTI are 284.47 billion and $44.31 billion for ITOT.A higher daily trading volume means that the security is more competitive and less volatile.