Rosenbluth Talks Vanguard 50-Year Milestone & Record Pacing ETF Inflows

On September 2, TMX VettaFi Head of Research Todd Rosenbluth appeared on the Schwab Network to discuss ETF inflows nearing record highs in 2026 and the 50th anniversary of the first-ever index fund, the Vanguard 500 Index Fund. The fund’s ETF share class, which trades under the ticker (VOO A), is a bit newer, having launched in 2010.Key Takeaways: The Vanguard 500 Index Fund celebrated its 50th anniversary, reaching $1 trillion in total assets and securing more than $100 billion in net inflows for 2026. Alternatively weighted, fundamental indexes like the Invesco RAFI US 1000 ETF (PRF A-) and the VictoryShares Free Cash Flow ETF (VFLO B+) have outperformed the S&P 500 this year by utilizing rules-based, value-oriented approaches. The broader ETF market has accumulated $1.4 trillion in inflows so far this year, pacing closely behind the $1.5 trillion record set in 2025. While equities dominate with $910 billion in demand, investors are increasingly shifting toward fixed income ETFs, which have gathered $55 billion in assets this year. “The Vanguard 500 fund turned 50 years old this week, which is a key milestone. The ETF version, the Vanguard 500 Index Fund (VOO A), now has a trillion dollars in assets and is the most popular this year so far. The fund has had 100 billion dollars in net inflows so far in 2026”, said Rosenbluth. In August alone, VOO saw $28 billion in new money and $105 billion in total for the year. Rosenbluth noted that despite concerns about market concentration this year, the fund, which tracks the S&P 500, is up 12% for the year after gaining ground in August. “It’s been a great year, and it has set the stage for other index innovation from other firms,” said Rosenbluth. VOO’s peers, the State Street SPDR Portfolio S&P 500 ETF (SPYM) and the iShares Core S&P 500 ETF (IVV A), have also done well in gathering assets this year. “It is exciting to see that 50 years later, the S&P 500 is accessible for 2 or 3 basis points and can fund many investor retirements,” Rosenbluth shared.Index Innovation AccelerationIn the past few years, index innovation has accelerated, providing investors with low-cost strategies that bring fundamental and valuation-based approaches to a retail investor base, according to Rosenbluth. Rosenbluth also highlighted the VictoryShares Free Cash Flow ETF (VFLO B+), explaining that the fund takes a forward-looking approach to free cash flow. “This is a high-quality, value-oriented ETF that now manages $11 billion. Its holdings include Adobe and Salesforce in the tech sector, but it has a healthy mix of energy, financial and materials companies,” he said. PRF and VFLO have also both outperformed the S&P 500 this year, and “their smart beta approach has the feel of an active fund, but with the rigor of an index fund,” added Rosenbluth. In addition, Rosenbluth noted that low-cost actively managed ETFs have gained momentum providing opportunities to outperform with ongoing stock selections.Investors Demand Fixed Income ETFsRosenbluth also noted that ETFs have approached the 2025 record of $1.5 trillion in inflows, gathering $1.4 trillion so far this year, with only four months left. “Investors have increasingly turned to fixed income ETFs, which have gathered $55 billion in assets this year so far,” he explained. Rosenbluth added that ongoing bond market volatility and uncertainty around Federal Reserve rate hikes have caused investors to turn towards short-term fixed-income ETFs, including the iShares 0-3 Month Treasury Bond ETF (SGOV A+). For more news, information, and analysis, visit the Thematic Investing Content Hub. VettaFi LLC (“VettaFi”) is the index provider for PRF and VFLO, for which it receives an index licensing fee. However, PRF and VFLO are not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of PRF and VFLO.