Rosenbluth Talks Vanguard 50-Year Milestone & Record Pacing ETF Inflows
Vanguard’s 500 Index Fund reached $1 trillion in assets as ETF inflows approach 2025’s record, while smart-beta, active, equity and fixed-income strategies broaden investor demand.
On September 2, TMX VettaFi Head of Research Todd Rosenbluth appeared on the Schwab Network to discuss ETF inflows nearing record levels in 2026 and the 50th anniversary of the Vanguard 500 Index Fund, the first-ever index fund. Its ETF share class, Vanguard 500 Index Fund (VOO), launched in 2010. The fund now has $1 trillion in assets, including more than $100 billion in 2026 net inflows. VOO attracted $28 billion in August and $105 billion year to date. Despite concerns about market concentration, the S&P 500-tracking fund has gained 12% this year. Rosenbluth said the milestone has encouraged further index innovation. State Street SPDR Portfolio S&P 500 ETF (SPYM) and iShares Core S&P 500 ETF (IVV) have also gathered assets. He noted that the S&P 500 is now accessible for 2 or 3 basis points and can support investor retirements. Alternative indexing is gaining attention. Invesco RAFI US 1000 ETF (PRF) and VictoryShares Free Cash Flow ETF (VFLO) have outperformed the S&P 500 this year through rules-based, value-oriented strategies. VFLO uses a forward-looking free-cash-flow approach, manages $11 billion and holds Adobe and Salesforce alongside energy, financial and materials companies. Rosenbluth described PRF and VFLO as smart-beta funds with the feel of active management and the discipline of index funds. Low-cost actively managed ETFs are also gaining momentum as investors seek potential outperformance through ongoing stock selection. The broader ETF market has collected $1.4 trillion in inflows this year, approaching the $1.5 trillion record set in 2025, with four months remaining. Equities account for $910 billion, while fixed-income ETFs have gathered $55 billion. Bond-market volatility and uncertainty surrounding Federal Reserve rate hikes have increased demand for short-term products, including iShares 0-3 Month Treasury Bond ETF (SGOV). VettaFi LLC is the index provider for PRF and VFLO and receives an index licensing fee. PRF and VFLO are not issued, sponsored, endorsed or sold by VettaFi, which has no obligation or liability for their issuance, administration, marketing or trading.