Investors poured a record $210b last year into Vanguard’s exchange traded fund arm, which secured more than a quarter of the ETF industry’s entire global cash inflows in 2020. It lost some assets after relinquishing a handful of institutional clients in China and Australia.
“Investors continued to give us their trust during the very difficult market conditions of last year. Vanguard clients’ wealth increased by $930bn over the course of 2020,” said Mr Buckley. Vanguard and its nearest rival BlackRock dominate the global asset management industry as a result of the massive shift by investors into index-tracking ETFs over the past decade. “Asset growth in passive index-tracking funds is turning into a two horse race with Vanguard and BlackRock leaving the rest a long way behind. The battle between the two titans is heating up,” said Amin Rajan, chief executive of the consultancy Create Research.