SPY ETF On Track For $500B Milestone, Boosted By S&P 500's Peak Performance, Record Inflows In 2023

Dec 28, 202316:51 UTC

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The SPDR S&P 500 ETF Trust SPY is on the cusp of making financial history as it inches closer to becoming the first exchange-traded fund to reach the extraordinary milestone of half a trillion dollars in assets under management (AUM).

According to data from TradingView, the SPY ETF started the year with approximately $355 billion in AUM, and it is poised to conclude 2023 with a monumental milestone: crossing the $500 billion threshold.

Launched and managed by State Street Global Advisors, Inc. (OTCPK: STTMF), the rapid growth of the largest ETF tracking the S&P 500 Index has been driven by a combination of robust market performance and unprecedented inflows from investors.

Chart: SPY ETF’s AUM Skyrocketed In 2023

S&P 500 Approaches All-Time Highs, Drawing Investor Flows

After soaring by 26% year to date, the S&P 500 Index is rapidly approaching its all-time highs, previously achieved in January 2022.

While this impressive 26% increase in AUM is attributable to favorable market conditions, the remaining $47 billion, pushing the ETF toward the half-a-trillion-dollar mark, can be credited to substantial inflows from investors.

This influx of capital into the SPY ETF positions 2023 to potentially be its most remarkable year for inflows since its launch in 1993.

Behind this unprecedented surge in funds lies an intriguing twist. A staggering $37.5 billion has poured into the SPY ETF in December 2023 alone, elevating this month to the strongest one ever recorded in terms of inflows.

Other ETFs Tracking S&P 500 Have Also Seen Robust Inflows

It’s worth noting that the SPY ETF is not the only fund to benefit from this wave of investor interest. Other ETFs tracking the S&P 500 have also experienced a surge in capital inflows.

The iShares Core S&P 500 ETF IVV stands out with a remarkable $36.5 billion in inflows year-to-date, marking its most substantial annual influx and propelling its AUM to nearly $400 billion.
The Vanguard S&P 500 ETF VOO has followed suit, recording a noteworthy $41.2 billion in inflows throughout 2023, marking its second-strongest year, surpassed only by the exceptional inflow seen in 2021.
The Invesco S&P Equal-Weight ETF RSP has joined the ranks of success, registering a record-breaking $11.9 billion in inflows for the year, establishing a new yearly record for the fund’s influx.

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