Jan 7 BlackRock Inc's U.S. iShares
exchange-traded funds took in $61 billion from customers in
2012, winning the top spot from Vanguard Group in a
Investors added $191 billion to U.S.-listed ETFs in total
last year, breaking the previous record of $169 billion in 2008,
according to fund researcher Morningstar.
Ranking second, Vanguard received $53 billion from
customers, while third-place State Street garnered $40
Overall assets in U.S. ETFs hit $1.35 trillion, or about 13
percent of all the money invested in long-term U.S. funds,
Growing competition among top ETF providers prompted
managers to cut fees across the industry last year. In October,
BlackRock rolled out a new line of lower-fee "core"
funds to combat low-fee funds from Vanguard and Charles Schwab
BlackRock's new line grabbed about one-quarter of all
customer inflows to its ETFs since being announced, Morningstar
Among other ETF managers, Invesco's PowerShares unit
placed fourth with $8 billion of inflows and bond giant Pimco
ranked fifth with $5 billion. The Pimco Total Return ETF
, an actively managed fund run by Bill Gross, was the
most successful new fund of 2012, bringing in almost $4 billion.