In this article, we discuss the 20 biggest ETFs by volume. If you want to skip our detailed discussion on the ETF industry and performance, head directly to 5 Biggest ETFs by Volume.
We recently reported that in 2023, bond ETFs have attracted $82 billion in investments, surpassing the $55 billion that entered equity funds. A trend highlighted by John Davi of Astoria Portfolio Advisors is the disparity in flow patterns between non-U.S. and U.S. ETFs, with non-U.S. equity funds receiving $40 billion and U.S. equities securing $14 billion. The shift from value to growth is also significant. Natixis Investment Managers pointed out a decline in equity ETF investments in 2023 compared to the steadier flow in 2022. In contrast, fixed income ETFs have consistently maintained a strong net flow due to concerns about an economic recession, attractive short-term interest rates, and potential bank failures. Market volatility is encouraging active ETF management. Natixis expects an increase in options-related ETFs in 2023, with data indicating growing investor interest in options overlays.
On July 25, CNBCcited Todd Sohn, the ETF and technical strategist at Strategas Securities, who said investors who wish to expand their portfolios beyond the surge in the technology sector this year have the option to explore several alternative ETFs. These ETFs can help mitigate the growing concern of excessive concentration risk. Sohn commented:
“The consternation over the mega-cap tech names driving the market — I understand it. But we’re seeing participation start to pick up that’s really important for the durability of a bull market.”
In 2021, there was an unprecedented surge in investments into global exchange traded funds as investors directed their increasing available funds into these cost-effective and easily understandable investment options. Based on information from Refinitiv Lipper, global ETFs experienced an all-time high of $1.22 trillion in inflows during 2021, marking a remarkable 71% increase compared to the year before. Consequently, the total assets held by these ETFs reached $9.94 trillion. However, this still stood in stark contrast to the much larger amount of assets managed by mutual funds in 2021, which came in at approximately $43.8 trillion. In 2022, investors poured a substantial $867 billion into exchange traded products (ETPs), marking the second-largest influx of funds following the record-setting figures seen in 2021, as revealed by BlackRock's data in January 2023. Exchange traded products consist of exchange traded funds, exchange traded notes, and other similar products. Retail investors in 2022 also doubled down on their investments in ETFs as the combination of escalating interest rates and unpredictable market conditions reduced their enthusiasm for high-risk assets like meme stocks, special purpose acquisition companies (SPACs), and cryptocurrencies. According to Karim Chedid, BlackRock’s EMEA head of investment strategy for its iShares unit:
"If you look at the market context for 2022, on the surface you would expect that the flows would have been more muted, because stocks and bonds declined by double digits compared to 2021. But we have seen the second-best year for ETF flows on record, only behind 2021. This shows the acceleration of ETFs as an investment vehicle of choice in 2022."
ETFs are a convenient and affordable investment vehicle to get exposure to stocks like Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Tesla, Inc. (NASDAQ:TSLA). This article discusses the biggest ETFs by volume.
Our Methodology
We used a stock screener and sorted the ETFs in descending order of volume. Then we picked the 20 largest ETFs by volume as of August 28. The following list is ranked in the ascending order of trading volume. We have also discussed the top holdings of the ETFs to offer better insight to potential investors.
The objective of the ProShares Ultra VIX Short-Term Futures ETF (BATS:UVXY) is to achieve a daily return that is 1.5 times the daily performance of the S&P 500 VIX Short-Term Futures Index, before accounting for fees and costs. This ETF is designed to help mitigate risk in U.S. stock portfolios by leveraging the historical inverse relationship between changes in the VIX Short-Term Futures Index and the returns of the S&P 500. The fund was created on October 3, 2011, and as of August 25, it has an expense ratio of 0.95%. ProShares Ultra VIX Short-Term Futures ETF (BATS:UVXY) is one of the biggest ETFs by volume.
19. iShares Silver Trust (NYSE:SLV)
Volume as of August 28: 22,742,139
The primary aim of the iShares Silver Trust (NYSE:SLV) is to generally mimic the price movement of silver. It utilizes the LBMA Silver Price as its fundamental reference. As of August 25, 2023, the ETF holds net assets worth $10.75 billion. iShares Silver Trust (NYSE:SLV) offers an easily accessible and economical way to invest in physical silver, contributing to portfolio diversification and acting as a safeguard against inflation. The iShares Silver Trust (NYSE:SLV) was launched on April 21, 2006, and it features a sponsor fee of 0.50%. It is one of the biggest ETFs.
18. ProShares UltraShort QQQ (NYSE:QID)
Volume as of August 28: 23,590,562
ProShares UltraShort QQQ (NYSE:QID)’s objective is to achieve daily returns, before accounting for fees and costs, that are double the opposite (-2x) of the daily movement of the Nasdaq-100 Index. This ETF is employed to capitalize on market downturns and provides reduced exposure to a specific market segment. ProShares UltraShort QQQ (NYSE:QID) was established on July 11, 2006. The ETF has a net expense ratio of 0.95% and it is one of the top funds in terms of volume.
17. iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT)
Volume as of August 28: 23,865,213
iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT)’s primary goal is to replicate the performance of the IDC US Treasury 20+ Year Index, which is composed of U.S. Treasury bonds that have more than twenty years until maturity. Its inception date was July 22, 2002. As of August 25, 2023, iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) holds approximately $40 billion in net assets and features an expense ratio of 0.15%. It is one of the biggest ETFs to watch.
Direxion Daily S&P 500 Bear 3X Shares (NYSE:SPXS)’s aim is to achieve daily returns that are three times (300%) the daily performance of the S&P 500® Index, before accounting for fees and costs, or three times (300%) the opposite (inverse) of the index's performance. The expense ratio of the ETF is 1.08%. It is one of the biggest ETFs in terms of volume.
Direxion Daily S&P Biotech Bull 3X Shares (NYSE:LABU)’s objective is to attain daily returns that are three times (300%) the daily performance of the S&P Biotechnology Select Industry Index, prior to deducting fees and costs. Alternatively, it aims for three times (300%) the inverse (opposite) of the index's performance. It is one of the biggest ETFs by volume. Direxion Daily S&P Biotech Bull 3X Shares (NYSE:LABU) was created on May 28, 2015, and currently maintains an expense ratio of 1.01%.
14. ProShares Short S&P500 (NYSE:SH)
Volume as of August 28: 28,440,727
ProShares Short S&P500 (NYSE:SH)’s goal is to mirror the opposite (-1x) of the daily movements of the S&P 500® Index, prior to accounting for fees and costs. The ETF aims to generate gains during market downturns and serves as a safeguard against expected declines. ProShares Short S&P500 (NYSE:SH) was introduced on June 19, 2006, and currently carries an expense ratio of 0.89%. It is one of the biggest ETFs by volume.
13. iShares Russell 2000 ETF (NYSE:IWM)
Volume as of August 28: 29,340,436
iShares Russell 2000 ETF (NYSE:IWM)’s primary objective is to replicate the performance of the Russell 2000 Index. The fund was introduced on May 22, 2000. As of August 25, 2023, iShares Russell 2000 ETF (NYSE:IWM)’s net assets amounted to approximately $54 billion. iShares Russell 2000 ETF (NYSE:IWM) holds a portfolio of 1990 stocks, and it features an expense ratio of 0.19%. It ranks 13th on our list of the biggest ETFs.
Super Micro Computer, Inc. (NASDAQ:SMCI), a company that designs and produces advanced server and storage solutions using modular and open architecture principles, is the largest holding of iShares Russell 2000 ETF (NYSE:IWM). According to Insider Monkey’s second quarter database, 37 hedge funds were bullish on Super Micro Computer, Inc. (NASDAQ:SMCI), compared to 36 funds in the prior quarter.
Like Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Tesla, Inc. (NASDAQ:TSLA), Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the top stocks on the radar of smart investors.
12. Direxion Daily 20+ Year Treasury Bull 3X Shares (NYSE:TMF)
Volume as of August 28: 29,782,020
Direxion Daily 20+ Year Treasury Bull 3X Shares (NYSE:TMF) aims to achieve daily returns of 300%, or 300% of the inverse, of the performance of the ICE U.S. Treasury 20+ Year Bond Index, before accounting for fees and costs. The ICE U.S. Treasury 20+ Year Bond Index is a weighted index comprising publicly issued U.S. Treasury securities with remaining maturities exceeding 20 years. Launched on April 16, 2009, Direxion Daily 20+ Year Treasury Bull 3X Shares (NYSE:TMF) currently features an expense ratio of 1.06%. It ranks 12th on our list of the biggest ETFs.
11. iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:HYG)
Volume as of August 28: 31,149,294
iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:HYG)’s goal is to replicate the investment performance of the Markit iBoxx USD Liquid High Yield Index, which includes high yield corporate bonds denominated in U.S. dollars. The ETF was introduced on April 4, 2007. As of August 28, 2023, iShares iBoxx $ High Yield Corporate Bond ETF (NYSE:HYG)’s portfolio consists of 1,189 securities, and its net assets exceed $14 billion. The ETF features an expense ratio of 0.49% and a 30-day SEC yield of 8.07%. It ranks 11th on our list of the biggest ETFs.
10. iShares China Large-Cap ETF (NYSE:FXI)
Volume as of August 28: 36,757,659
iShares China Large-Cap ETF (NYSE:FXI)’s objective is to replicate the performance of the FTSE China 50 Index, which includes major Chinese stocks listed on the Hong Kong Stock Exchange. The fund's inception date was October 5, 2004. As of August 28, 2023, the net assets of the iShares China Large-Cap ETF (NYSE:FXI) amount to over $5 billion. The fund offers an expense ratio of 0.74%. It is one of the biggest ETFs to invest in.
Alibaba Group Holding Limited (NYSE:BABA) is the largest holding of the iShares China Large-Cap ETF (NYSE:FXI). According to Insider Monkey’s second quarter database, Alibaba Group Holding Limited (NYSE:BABA) was part of 112 hedge fund portfolios, compared to 128 in the last quarter. David Tepper’s Appaloosa Management is a prominent stakeholder of the company, with a position worth $373 million.
In addition to Microsoft Corporation (NASDAQ:MSFT), Amazon.com, Inc. (NASDAQ:AMZN), and Tesla, Inc. (NASDAQ:TSLA), Alibaba Group Holding Limited (NYSE:BABA) is one of the top stock picks of elite hedge funds.
Oakmark Global Select Fund made the following comment about Alibaba Group Holding Limited (NYSE:BABA) in its second quarter 2023 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) (China) was the top detractor for the quarter. Sentiment in Chinese equities has degraded after the initial excitement from China’s reopening earlier in the year. Incremental macroeconomic data coming out of China indicates that the Covid-19 re-opening bounce is fading, and the economy is struggling to sustain healthy growth. Political tensions between the U.S. and China are also further weighing on investor sentiment. As the largest e-commerce platform in China, Alibaba’s share price has been caught up in this storm. The company has also continued to face intense competition from the likes of short video players and traditional e-commerce companies. Indeed, Alibaba has lost market share, which we expect will continue. But despite these negative factors, it remains an extremely important platform in China and continues to generate significant free cash flow. In the most recently completed fiscal year, the company generated $25B of free cash flow, which is 12% of the current market capitalization. Today, its core commerce business trades at approximately 5x EBITA, a valuation we deem much too cheap, even with the headwinds noted above. But valuation alone is often not enough to unlock value. Alibaba’s management team is proactively working for minority shareholders. The company has been aggressive with share repurchases and with the recent formation of a capital management committee. Our conversations with the company indicate there is a high probability that more shareholder returns will be coming. In addition, the company recently announced a major restructuring that will effectively break up the company and separately list various businesses within Alibaba. Today, the market is assigning little to no value to these businesses and having a market quote may force investors to give Alibaba value for these assets. Whether or not the restructuring works, we appreciate management’s efforts to help unlock value in what is clearly an undervalued stock.”
9. Financial Select Sector SPDR Fund (NYSE:XLF)
Volume as of August 28: 40,347,163
The aim of the Financial Select Sector SPDR Fund (NYSE:XLF) is to achieve investment outcomes that closely align with the price and yield performance of the Financial Select Sector Index, before accounting for expenses. The underlying benchmark is designed to effectively represent the financial sector within the S&P 500 Index. Financial Select Sector SPDR Fund (NYSE:XLF) was introduced on December 16, 1998. As of August 28, 2023, the fund manages assets totaling $32.6 billion, and it features an expense ratio of 0.10%. It is one of the biggest ETFs by volume.
Berkshire Hathaway Inc. (NYSE:BRK-B) is the largest holding of the Financial Select Sector SPDR Fund (NYSE:XLF). According to Insider Monkey’s second quarter database, Berkshire Hathaway Inc. (NYSE:BRK-B) was part of 109 hedge fund portfolios, compared to 108 in the prior quarter. Bill & Melinda Gates Foundation Trust is the largest stakeholder of the company, with more than 25 million shares worth $8.5 billion.
Here is what Black Bear Value Fund has to say about Berkshire Hathaway Inc. (NYSE:BRK-B) in its Q3 2022 investor letter:
“Going forward I expect Berkshire to compound at above average returns from this price. BRK is a collection of high-quality businesses, excellent management, and a good amount of optionality in their cash position. If the cash were to be deployed accretively, the true value would be greater than an 8% premium (as mentioned above). The combination of a pie that is growing, an increasing share of said pie due to stock buybacks, upside optionality from cash and a tight range of likely business outcomes that span a variety of economic futures gives me comfort in continuing to own Berkshire.”
8. ProShares UltraPro Short S&P500 (NYSE:SPXU)
Volume as of August 28: 41,396,629
ProShares UltraPro Short S&P500 (NYSE:SPXU) aims to achieve daily returns that are three times the opposite (-3x) of the daily movements of the S&P 500 Index, before deducting fees and costs. The ETF was established on June 23, 2009. As of August 28, 2023, ProShares UltraPro Short S&P500 (NYSE:SPXU) has an expense ratio of 0.90%. Its volume on August 28 stood at 41,396,629, making it one of the biggest ETFs.
7. ProShares Short QQQ (NYSE:PSQ)
Volume as of August 28: 59,275,364
ProShares Short QQQ (NYSE:PSQ) aims to achieve daily returns that are the opposite (-1x) of the daily movements of the Nasdaq-100 Index, before accounting for fees and costs. The fund's inception date was June 19, 2006. As of August 28, 2023, ProShares Short QQQ (NYSE:PSQ) has a gross expense ratio of 1.00%. It is one of the biggest ETFs, ranking 7th on our list based on volume.
6. Invesco QQQ Trust (NASDAQ:QQQ)
Volume as of August 28: 69,960,465
Invesco QQQ Trust (NASDAQ:QQQ) offers an opportunity to invest in a collection of innovative businesses within the Nasdaq-100, all consolidated into a single fund. Since its inception in 1999, Invesco QQQ Trust (NASDAQ:QQQ) has consistently showcased superior performance, often surpassing the S&P 500 Index. The fund was created on March 10, 1999. As of August 28, 2023, the ETF manages assets totaling $197.90 billion and comes with an expense ratio of 0.2%. It is one of the biggest ETFs by volume.
Apple Inc. (NASDAQ:AAPL) is the biggest stock in Invesco QQQ Trust (NASDAQ:QQQ)’s portfolio. According to Insider Monkey’s second quarter database, 135 hedge funds were long Apple Inc. (NASDAQ:AAPL), compared to 131 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the leading stakeholder of the company, with 915.5 million shares worth $177.6 billion.
Choice Equities Capital Management made the following comment about Apple Inc. (NASDAQ:AAPL) in its second quarter 2023 investor letter:
“Dramatic valuation differences across market cap sizes continue. This has been the case for some time now. Perhaps I have spent too much time discussing these dichotomies, as generally, I feel like if we pick the right stocks and manage market exposures thoughtfully, our equities- oriented portfolio will prosper across various market cycles. However, when markets become as lopsided as they have lately, I feel additional discussion on the market environment is worthwhile, if only to help highlight the opportunities that are available and the likely path forward. I expect future discussions to soon be focused again on our moderately concentrated portfolio. But for now, let’s take one last in-depth look at how far reaching these valuation dichotomies have again become.(Please note: charts that accompany the following can be found in the Appendix.)
