July 28, 2003 — The combined assets of the nation’s exchange-traded funds (ETFs) increased to $121.6 billion at the end of June, up from $118.4 billion at the end of May, according to data released today by the Investment Company Institute (ICI).
ETF assets totaled $102.1 billion as of year-end 2002.
At the end of June, 114 ETFs were in operation (same as in the prior month). Of that total, 69 ETFs tracked domestic stock indexes and held assets of $109.6 billion; 41 ETFs tracked international/global equity indexes and held assets of $8.1 billion; and four bond index ETFs held assets of $3.9 billion.
The ICI noted that assets of domestic equity ETFs increased by $1.31 billion, and international equity ETF assets increased by $1.51 billion.
In addition, the value of all ETF shares issued exceeded that of shares redeemed by $860 million. Equity index ETFs experienced a positive net issuance of $508 million, while bond ETFs experienced a positive net issuance of $352 million. Gross issuance of all ETFs increased in June to $8.30 billion from $4.85 billion in May, and redemptions increased to $7.44 billion from $3.77 billion in May.
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.