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The SPDR S&P 500 ETF Trust (SPY) today became the first exchange-traded fund to cross $600 billion in assets under management, the latest landmark for a fund whose success has reflected the voracious demand for ETFs and the ongoing bull market.
SPY now manages $600.86 billion in AUM, etf.com data shows.
"SPY hitting $600 billion is a big milestone and a reflection of this year's enormous stock market gains," etf.com Senior Analyst Sumit Roy said, noting that the fund had added $22 billion in assets over the past month.
SPY has achieved year-to-date returns of 23.1% and a one-year return of 39.1%, according to etf.com data. The fund, which debuted in January 1993 as the first ETF in the United States, tracks the S&P 500.
Its success also reflects the growing popularity of passive investing and the S&P 500 as a benchmark for U.S. large-cap stocks, although it has faced increasing competition. The fund has shed about $5.7 billion in assets year-to-date, despite this month's strong inflows, etf.com data shows, losing ground to its fiercest rivals, Vanguard S&P 500 ETF (VOO) and iShares Core S&P 500 ETF (IVV).
Read More: SPY Helps State Street Top Vanguard in Monthly Flows
Rivals Gaining Ground
VOO has received net inflows of $77.8 billion this year, bringing its total AUM to $540.9 billion, etf.com data shows. IVV has attracted $51.9 billion in inflows this year, pushing its AUM to $544.5 billion. Both funds are likely to overtake SPY in the next year based on current trends, Roy says.
Read More: IVV, VOO on Pace to Take SPY's ETF Crown Within a Year
The lower expense ratios of VOO and IVV—both at 0.03% compared to SPY’s 0.09%—have made them increasingly attractive to long-term investors.
Despite the competitive pressure, SPY has maintained its position among the most liquid ETFs. According to etf.com data, SPY trades an average of $23 billion daily as the ETF continues to be a favored instrument among institutional investors and traders.
Still, "this might be the last AUM milestone that SPY gets to first with competitors like IVV and VOO hot on its tails," Roy wrote.
Read More: SPY's Big Outflows Hamper State Street: Morningstar