When trillions of dollars keep on pouring into the same small group of funds year after year, there has to be a reason for it.
The 10 largest ETFs in the world, ranked by assets under management, are an absolute behemoth with assets dwarfing the GDP of most countries. Every last one of them is a passive index fund, not a single one is an actively managed strategy. That’s not a coincidence.
Assets under management, or AUM, is the total value of everything that a fund holds. And the bigger that AUM figure, the more investors are basically saying they trust it with their hard-earned cash.
For anyone just starting to learn how to invest in ETFs, knowing where the really big pools of money are is a great place to start.
What Are Exchange-Traded Funds?
An ETF is a basket of investments with stocks, bonds, commodities, or a mix that trades on a stock exchange just like a regular stock. The price of ETFs updates in real time throughout the day, so you always know what you’re paying. That’s the biggest practical difference from mutual funds, which only compute a price once per day after the market closes.
Both ETFs and mutual funds offer broad diversification, can be actively or passively managed, charge an expense ratio, and support automatic investing and fractional shares depending on the broker. The structure is more similar than most people realize.
Where they split is in the everyday details. Mutual funds are typically bought through a specific brokerage, may require a minimum investment, and use five-letter tickers like VFIAX. ETFs on the other hand, trade on nearly any platform, have no account minimums, and are generally more tax-efficient due to how shares are created and redeemed behind the scenes.
Most ETFs use a passive strategy which means the fund tracks an index rather than having a manager pick stocks. That keeps costs low and, as the data shows, gives long-term investors a consistent edge.
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The 10 Largest ETFs by AUM
All 10 are passive index funds, so no of them rely on active stock selection.
Now, let’s take a closer look at each one of these ETFs. All data is as of March 3, 2026.
#1: Vanguard S&P 500 ETF (VOO) – $872 Billion
First on the list is VOO, which is the world’s biggest ETF, with $872 billion in assets under management.1 It tracks the S&P 500 index, giving investors exposure to 503 of the largest publicly traded U.S. companies. Technology is the biggest sector at 34.1%, and the top 10 holdings account for 38.4% of the total weight.
Launched in 2010, VOO has become the benchmark for cost-conscious long-term investors. The cost is just 0.03% which is a low $3 per year on every $10,000 invested.
Over the past 10 years, VOO has averaged an annual return of 15.54%. Plug that into a compound growth formula and $100,000 invested 10 years ago would have grown to approximately $423,959, not too shabby by any standard. The trailing 12-month dividend yield is 1.1%.
For a full breakdown, see the VOO ETF review on our website.
#2: iShares Core S&P 500 ETF (IVV) – $751 Billion
Next we have IVV. This is the second largest ETF in the world, managed by iShares. IVV tracks the same S&P 500 as VOO with the same 0.03% expense ratio.2
The 10-year annualized return is 15.55% and it launched in 2000, making this one of the oldest S&P 500 ETFs still trading.
IVV and VOO are near-identical in performance, the only real difference is the issuer. To compare all the leading S&P 500 options, see 5 Best S&P 500 Index Funds.
#3: SPDR S&P 500 ETF Trust (SPY) – $693 Billion
Moving on to SPY. It launched in January 1993 as the first ETF listed in the U.S. and remains the most heavily traded ETF on the market with roughly 80 million shares trading daily. That liquidity makes the SPDR S&P product the go-to for institutional traders, options strategies, and anyone who needs to trade large positions quickly.
The expense ratio is 0.0945% which is more than three times the cost of VOO or IVV. That adds up over the long term. For long-term buy-and-hold investing, VOO or IVV are the more cost-efficient options.
#4: Vanguard Total Stock Market ETF (VTI) – $586 Billion
VTI tracks the entire U.S. stock market across 3,511 stocks covering large, mid, and small-cap.3 The expense ratio is 0.03% and it launched in 2001.
VTI and VOO overlap by about 88% because the S&P 500 dominates U.S. market cap. The 10-year annualized return is 15.11% versus VOO’s 15.54%.
The real difference is small-cap exposure, VTI gives you companies that VOO leaves out entirely. Both trade on major exchanges and both are solid long-term investment options. The choice comes down to whether that extra exposure is important to you.
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#5: Invesco QQQ Trust (QQQ) – $396 Billion
QQQ tracks the Nasdaq 100 Index, covering the 100 largest non-financial companies on the Nasdaq exchange.4 Launched in 1999, it holds 102 stocks with tech making up 59.77% of the total weight. The top 10 holdings represent roughly 47% of the whole fund which is far more concentrated than a broad S&P 500 ETF.
Over the past 10 years, QQQ averaged 20.45% per year, that’s a very strong return. Using compound growth, $100,000 invested 10 years ago would be approximately $642,788 – compared to VOO’s $423,959 over the same period.
But with that comes more risk. QQQ is so heavily weighted to tech that it gets hit hard in downturns and rips ahead in bull markets.
The expense ratio is 0.18%. Long-term investors who want similar exposure at lower cost might want to consider QQQM. The QQQ vs QQQM breakdown is worth a read.
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#6: Vanguard FTSE Developed Markets ETF (VEA) – $222 Billion
VEA is the largest international equity ETF in the world, tracking developed markets outside the U.S. across 3,893 stocks from Japan, the UK, Canada, Germany, and more.5
Launched in 2007, the expense ratio is 0.03%, trailing dividend yield is roughly 2.86%, and the 10-year annualized return is 11.01%.
VEA holds no U.S. stocks, so there’s zero S&P 500 overlap. International equity ETFs like VEA give your portfolio exposure to developed foreign markets that trade on their own rhythm, somewhat independent of U.S. prices.
#7: Vanguard Growth ETF (VUG) – $196 Billion
VUG focuses on U.S. large-cap growth stocks across 151 companies. Launched in 2004, technology makes up 65.70% of the fund and the top 10 holdings account for roughly 64.6% of total weight. The expense ratio is 0.03%.
The 10-year annualized return is 18.02%. Using compound growth, $100,000 invested 10 years ago would have grown to approximately $524,271.
VUG overlaps with the S&P 500 by about 55% but skews heavily toward growth and underweights areas like financials and energy.
#8: SPDR Gold Shares (GLD) – $185 Billion
GLD doesn’t hold stocks or bonds, it holds physical bullion, with the fund’s assets backed by actual gold in secure vaults. That makes it the only commodity ETF on this list.6
Launched in 2004, the expense ratio is 0.40%, the highest here. For those focused on the long term, GLDM offers the same exposure at 0.10%. GLD’s premium pricing reflects its institutional-grade liquidity and trading volume.
Worth noting is that bullion prices tend to move independently of stocks, which is why many investors use it as a portfolio hedge. The 10-year annualized return is 9.54% – modest, but that’s what you’d expect from gold, which is a store of value, not a growth investment.
#9: iShares Core MSCI EAFE ETF (IEFA) – $183 Billion
IEFA covers developed international markets across Europe, Australasia, and the Far East, holding 2,632 securities. The expense ratio is 0.07% and the trailing dividend yield is approximately 3.23%.7 IEFA launched in 2012.
Like VEA, IEFA holds no U.S. stocks. The key difference is index construction: IEFA tracks the MSCI EAFE index and excludes Canada, while VEA includes it.
The 10-year annualized return is 9.54%. Distributions from international equity ETFs like IEFA are often taxed differently from U.S. dividends.
#10: Vanguard Value ETF (VTV) – $174 Billion
VTV rounds out the list with U.S. large-cap value stocks across 312 companies. Launched in 2004, technology exposure is just 10.96% and the fund leans toward sectors like healthcare, financials, and consumer staples. The expense ratio is 0.03% and the trailing dividend yield is roughly 1.88%.
The fund’s 10-year annualized return is 12.73%. Value ETFs like VTV tend to hold up better during broad selloffs because the underlying companies have strong balance sheets and consistent dividend histories. The S&P 500 overlap is approximately 44%.
What the Data Says
Performance and Cost Data
Three of the top four funds track the S&P 500. VOO, IVV, and SPY together hold over $2.3 trillion in assets, more than double the combined AUM of every other ETF on this list. All three also delivered annualized returns of between 15.48% and 15.55% over the past decade, with minimal performance differences.
The cost spread across these ETFs runs from 0.03% to 0.40%. Over 30 years, that difference on a $500,000 fund investment adds up to tens of thousands of dollars in compounded returns. Every dollar not lost to fees grows instead, and that’s why long-term returns consistently favor low cost index ETFs.
If we compare against bonds, the contrast is pretty stark. The gap between short-term bond returns versus the long-term returns of equity ETFs, and the very different risk profiles, is exactly why the S&P 500 keeps attracting capital at this scale. Investing in broad index funds continues to prove it is one of the most well-supported strategies in the data.
What’s Not on This List
Short-term returns across these funds vary a lot. Nasdaq 100 prices can swing more than 30% in a single year, while the S&P 500’s short-term returns are more moderate. Gold prices move independently of stocks.
Not one of the 10 largest ETFs is a bond ETF, but bonds remain a crucial part of most long-term investment strategies. A bond ETF gives you a level of stability that pure equity ETFs just can’t offer when things get rough. When the market drops and people start selling equity ETFs, bond ETF fund assets will often hold their value or even rise. That’s why most diversified fund portfolios include both stocks and bonds.
If you want to keep things simple, a three-fund portfolio built on VTI, VEA, and a bond ETF covers U.S. equities, international equities, and bonds without any complicated instruments or commodities.
» Want to see more? Compare top index funds through our free cheatsheet
Distributions and Taxes
If you hold any of these ETFs in a taxable account, keep an eye on dividend income. VEA and IEFA both offer higher yields than most U.S. equity ETFs, and those dividends may be taxed differently than domestic income.
GLD produces no dividend income since gold pays nothing. It’s worth thinking through whether to hold income-producing ETFs inside a Roth IRA or a taxable brokerage account before committing fund assets.
Your Next Step: How to Buy ETFs
Every ETF on this list is accessible through a standard brokerage. None require a minimum beyond the price of a single share, and most platforms also let you buy in fractional shares.
You can buy or sell any of these funds during market hours just like a stock. If you haven’t compared brokerage accounts yet, that’s a good place to start. ETFs are also available in IRAs, allowing you to reap tax-advantages for retirement.
For most long-term investors, a two or three-fund combination from this list covers everything. A broad U.S. market fund like VOO or VTI, an international ETF like VEA, and a bond ETF for stability.
These funds earned their size through consistent low fees, reliable index tracking, and the trust of millions of investment dollars built up over decades.
Past performance doesn’t guarantee future performance, but the structural advantages of low cost, diversified index ETFs are pretty hard to argue with.
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