How the Largest ETFs Performed

Each month, we check in on the performance of the largest US stock, bond, and active exchange-traded funds.

The Morningstar US Market Index rose 1.50% during January and is up 15.49% over the past year. The Morningstar US Core Bond Index rose 0.26% last month and is up 6.80% over the past year.

In the global markets, stocks gained 3.23% during January, as measured by the Morningstar Global Markets Index. Bonds rose 1.03%, as measured by the Morningstar Global Core Bond Index. Over the past year, global stocks are up 22.61% and global bonds are up 8.30%.

Largest US Stock ETF Performance

When evaluating ETFs, investors should focus on long-term returns across multiple years and market cycles. However, short-term returns can provide valuable information about biases within strategies.

Out of the 10 largest US stock ETFs, the top performer last month was the $269 billion Vanguard Developed Markets Index Fund VEA, which gained 5.99%. The bottom performer was the $352.4 billion Vanguard Growth Index Fund VUG

Here’s more about the performance of the largest stock ETFs.

Vanguard Total Stock Market Index Fund VTI

• Morningstar Medalist Rating
  : Gold
• Morningstar Category
  : Large Blend

The Vanguard Total Stock Market Index Fund gained 1.58% in January, performing roughly in line with the average fund in the large blend category, which rose 1.65%. The $2.1 trillion fund has gained 15.41% over the past 12 months, while the average fund in its category is up 13.45%. The Vanguard fund, which launched in May 2001, has climbed 20.18% over the past three years annualized and gained 13.51% annualized over the past five years.

Vanguard 500 Index Fund VOO

• Morningstar Medalist Rating
  : Gold
• Morningstar Category
  : Large Blend

The $1.5 trillion Vanguard 500 Index Fund rose 1.45% in January. The gain on the fund was shy of the 1.65% gain on the average fund in the large blend category, leaving it in the 51st percentile for performance. Over the past 12 months, the Vanguard fund rose 16.31%, while the average fund in its category rose 13.45%. The fund, which launched in September 2010, has climbed 21.07% over the past three years annualized and gained 14.95% annualized over the past five years.

iShares Core S&P 500 ETF IVV

• Morningstar Medalist Rating
  : Gold
• Morningstar Category
  : Large Blend

The iShares Core S&P 500 ETF gained 1.45% in January, underperforming the average fund in the large blend category, which rose 1.65%. The $767.7 billion fund has gained 16.32% over the past 12 months, while the average fund in its category is up 13.45%. The iShares fund, which launched in May 2000, has climbed 21.08% over the past three years annualized and gained 14.95% annualized over the past five years.

State Street SPDR S&P 500 ETF Trust SPY

• Morningstar Medalist Rating
  : Silver
• Morningstar Category
  : Large Blend

The $715.4 billion State Street SPDR S&P 500 ETF Trust rose 1.44% in January. The gain on the fund was shy of the 1.65% gain on the average fund in the large blend category, leaving it in the 52nd percentile for performance. Over the past 12 months, the State Street fund rose 16.23%, while the average fund in its category rose 13.45%. The fund, which launched in January 1993, has climbed 20.98% over the past three years annualized and gained 14.88% annualized over the past five years.

Vanguard Total Intl Stock Idx Fund VXUS

• Morningstar Medalist Rating
  : Gold
• Morningstar Category
  : Foreign Large Blend

The $573.7 billion Vanguard Total Intl Stock Idx Fund rose 5.74% in January. The gain on the fund beat the 5.00% gain on the average fund in the foreign large blend category, leaving it in the 27th percentile for performance. Over the past 12 months, the Vanguard fund rose 35.30%, while the average fund in its category rose 31.32%. The fund, which launched in January 2011, has climbed 16.17% over the past three years annualized and gained 9.22% annualized over the past five years.

Largest US Bond ETF Performance

When evaluating ETFs, investors should focus on long-term returns across multiple years and market cycles. However, short-term returns can provide valuable information about biases within strategies.

Out of the 10 largest US bond ETFs, the top performer last month was the $64.9 billion Vanguard Short-Term Inflation-Protected Securities Index Fund VTIP, which gained 0.53%. The bottom performer was the $46.6 billion iShares 7-10 Year Treasury Bond ETF IEF, which lost 0.23%.

Here’s more about the performance of the largest bond ETFs.

Vanguard Total Bond Market Index Fund BND

• Morningstar Medalist Rating
  : Gold
• Morningstar Category
  : Intermediate Core Bond

In January, the Vanguard Total Bond Market Index Fund rose 0.19%, while the average intermediate core bond fund gained 0.23%. The fund placed in the 71st percentile for performance. The $384.6 billion fund has climbed 6.71% over the past 12 months, performing roughly in line with the average fund in its category, which rose 6.74%. The Vanguard fund, which launched in April 2007, has climbed 3.66% over the past three years annualized and lost 0.21% annualized over the past five years.

iShares Core US Aggregate Bond ETF AGG

• Morningstar Medalist Rating
  : Gold
• Morningstar Category
  : Intermediate Core Bond

In January, the iShares Core US Aggregate Bond ETF rose 0.20%, while the average intermediate core bond fund gained 0.23%. The fund placed in the 66th percentile for performance. The $137.7 billion fund has climbed 6.86% over the past 12 months, performing roughly in line with the average fund in its category, which rose 6.74%. The iShares fund, which launched in September 2003, has climbed 3.65% over the past three years annualized and lost 0.20% annualized over the past five years.

Vanguard Total International Bond Index Fund BNDX

• Morningstar Medalist Rating
  : Silver
• Morningstar Category
  : Global Bond-USD Hedged

The $113.8 billion Vanguard Total International Bond Index Fund rose 0.41% in January. The gain on the fund was shy of the 0.46% gain on the average fund in the global bond-USD hedged category, leaving it in the 61st percentile for performance. Over the past 12 months, the Vanguard fund rose 3.26%, while the average fund in its category rose 5.04%. The fund, which launched in May 2013, has climbed 4.44% over the past three years annualized and lost 0.01% annualized over the past five years.

iShares 0-3 Month Treasury Bond ETF SGOV

• Morningstar Medalist Rating
  : Neutral
• Morningstar Category
  : Ultrashort Bond

The iShares 0-3 Month Treasury Bond ETF gained 0.30% in January, underperforming the average fund in the ultrashort bond category, which rose 0.36%. The $70.3 billion fund has gained 4.16% over the past 12 months, while the average fund in its category is up 4.71%. The iShares fund, which launched in May 2020, has climbed 4.87% over the past three years annualized and gained 3.29% annualized over the past five years.

Vanguard Short-Term Bond Index Fund BSV

• Morningstar Medalist Rating
  : Silver
• Morningstar Category
  : Short-Term Bond

In January, the Vanguard Short-Term Bond Index Fund rose 0.20%, while the average short-term bond fund gained 0.34%. The fund placed in the 89th percentile for performance. The $68.1 billion fund has climbed 5.72% over the past 12 months, performing roughly in line with the average fund in its category, which rose 5.74%. The Vanguard fund, which launched in April 2007, has climbed 4.52% over the past three years annualized and gained 1.58% annualized over the past five years.

Largest US Active ETF Performance

While passive ETFs have portfolios where holdings are designed to track the performance of an index, active ETFs are managed by portfolio managers who make the decisions about which investments to own. Like index-tracking ETFs, active ETFs trade on an exchange and are typically lower-cost and more tax-efficient than traditional actively managed mutual funds.

When evaluating ETFs, investors should focus on long-term returns across multiple years and market cycles. However, short-term returns can provide valuable information about biases within strategies.

Out of the 10 largest US active ETFs, the top performer last month was the $22.5 billion Avantis US Small Cap Value ETF AVUV, which gained 7.08%. The bottom performer was the $20 billion Capital Group Growth ETF CGGR, which gained 0.09%.

Here’s more about the performance of the largest active ETFs.

JPMorgan Equity Premium Income ETF JEPI

• Morningstar Medalist Rating
  : Silver
• Morningstar Category
  : Derivative Income

The $43.1 billion JPMorgan Equity Premium Income ETF rose 2.37% in January. The gain on the fund beat the 0.62% gain on the average fund in the derivative income category, leaving it in the 29th percentile for performance. The fund beat its benchmark, the S&P 500 Index, by 0.92 percentage points.

Over the past 12 months, the JPMorgan fund rose 7.94%, while the average fund in its category rose 9.55%. The fund, which launched in May 2020, has climbed 10.39% over the past three years annualized and gained 10.28% annualized over the past five years.

Dimensional US Core Equity 2 ETF DFAC

• Morningstar Medalist Rating
  : Silver
• Morningstar Category
  : Large Blend

The Dimensional US Core Equity 2 ETF gained 2.81% in January, outperforming the average fund in the large blend category, which rose 1.65%. The $41.9 billion fund has gained 15.25% over the past 12 months, while the average fund in its category is up 13.45%. The Dimensional fund, which launched in October 2007, has climbed 17.48% over the past three years annualized and gained 13.50% annualized over the past five years.

JPMorgan Ultra-Short Income ETF JPST

• Morningstar Medalist Rating
  : Silver
• Morningstar Category
  : Ultrashort Bond

In January, the JPMorgan Ultra-Short Income ETF rose 0.36%, while the average ultrashort bond fund gained 0.36%. The fund placed in the 40th percentile for performance. The $36.5 billion fund has climbed 4.90% over the past 12 months, performing roughly in line with the average fund in its category, which rose 4.71%. The JPMorgan fund, which launched in May 2017, has climbed 5.18% over the past three years annualized and gained 3.43% annualized over the past five years.

JPMorgan Nasdaq Equity Premium Income ETF JEPQ

• Morningstar Medalist Rating
  : Bronze
• Morningstar Category
  : Derivative Income

In January, the JPMorgan Nasdaq Equity Premium Income ETF rose 2.30%, while the average derivative income fund gained 0.62%. The fund placed in the 30th percentile for performance and beat its benchmark, the S&P 500 Index, by 0.85 percentage points.

The $34.4 billion fund has climbed 15.57% over the past 12 months, outperforming the average fund in its category, which rose 9.55%. The JPMorgan fund, which launched in May 2022, has gained 23.66% over the past three years annualized.

iShares US Equity Factor Rotation Active ETF DYNF

• Morningstar Medalist Rating
  : Bronze
• Morningstar Category
  : Large Blend

The $32.3 billion iShares US Equity Factor Rotation Active ETF rose 1.14% in January. The gain on the fund was shy of the 1.65% gain on the average fund in the large blend category, leaving it in the 72nd percentile for performance. The fund lagged its benchmark, the MSCI USA Index, by 0.13 percentage points.

Over the past 12 months, the iShares fund rose 18.44%, while the average fund in its category rose 13.45%. The fund, which launched in March 2019, has climbed 25.92% over the past three years annualized and gained 16.54% annualized over the past five years.