Setting

But here's a genuinely interesting prediction from The ETF Educator's Nate Geraci: State Street's pioneering flagship ETF — the $355bn SPDR S&P 500 ETF Trust — ...

. My prediction is that money will continue flowing out of expensive, underperforming active mutual funds and find its way into the cheapest, core beta exposure out there. While its annual fee of 9.45 basis points is much higher than the 3 bps that both Vanguard’s VOO and BlackRock’s IVV charge, the other two cannot (yet) rival the prototype ETF’s bid-ask spreads and associated web of derivatives built on top of it. The iShares Core S&P 500 ETF (IVV) holds $288 billion in assets and the Vanguard S&P 500 ETF (VOO) has $279 billion. SPY is one of the most actively-traded equity instruments in the world, and liquidity begets liquidity. My first prediction is that one of these ETFs (my money is on VOO) captures SPY’s ETF crown by the end of the year. The first US-listed ETF, the SPDR S&P 500 ETF (SPY), launched on January 22nd, 1993.