A seismic shift is currently underway among the world’s largest exchange-traded funds (ETFs), which could redefine the landscape of the ETF universe. The SPDR S&P 500 ETF Trust (NYSE:SPY), the largest ETF globally with over $500 billion in assets under management, experienced significant outflows since the beginning of the year. In contrast, its lower-cost peers, especially the Vanguard S&P 500 ETF (NYSE:VOO), saw an influx of investments. What’s driving this trend? Outflows From SPY ETF On The Rise The SPDR S&P 500 ETF Trust witnessed outflows totaling $28 billion since the year’s start, according to data from Vettafi. This shift is notable because it occurs against a backdrop where the U.S. stock market has been on the rise, indicating that the performance of the underlying investments isn’t the cause of the outflows. The primary driver behind this shift appeared to be the cost associated with managing these funds, rather than their performance. SPY has an expense ratio of 0.09%, significantly higher than some of its direct competitors. Even a few basis points can make a considerable difference in investor returns over time, especially for institutional or very large individual investors. Chart: SPY ETF Witnesses $28 Billion In Outflows Year-To-Date