Vanguard [profile] may still be be behind iShares [profile] in the ETF race, but it's got the leaders in its sights and is gaining ground, according to The Financial Times.

iShares' hold on the ETF and ETP market has been falling steadily the last four years. In 2009, iShares held 41.5 percent in the global sphere but dropped to 38.6 percent by the end of July 2012.

Deborah Fuhr, ETFGI founder, said that "Vanguard's reputation of being low cost resonates well with investors."

Most of the loses of iShares were in the US vis-a-vis Vanguard's gains.

Vanguard has been near the top of the inflows list for most of 2012.  

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