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ETF Assets Edged Down in July: ICI

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Aug. 22, 2002 — The combined assets of the nation’s exchange-traded funds (ETFs) totaled $88.3 billion at the end of July, down from $89 billion at the end of June, according to data released by the Investment Company Institute (ICI).

At the end of July, 106 ETFs were in operation, four more than the prior month, resulting from the introduction of a new category of ETFs based on bond indexes. Of that total, 68 ETFs tracked domestic stock indexes in July and held assets of $78.6 billion. Thirty-four ETFs tracked international equity indexes and held assets of $6.7 billion. The four bond index ETFs, which were initially offered to investors in June and rated by Standard & Poor’s, held assets of $3 billion in July.

The ICI noted that assets of all equity ETFs decreased by $3.7 billion to $85.3 billion in July. Assets of domestic equity ETFs decreased by $3.1 billion, while assets of international equity ETFs decreased by $596 million.

The value of equity ETF shares issued exceeded that of shares redeemed by $7.2 billion in July. Gross issuance increased to $9.2 billion from $8.2 billion in June, and redemptions decreased to $2.1 billion from $4.3 billion in June.

In addition, during the month, net issuance of bond index ETFs was $3 billion.

Net issuance, which is gross issuance minus redemptions, is roughly equivalent to the unit of net new cash flow that is used for conventional mutual funds.