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ETF Assets Decline in July: ICI

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Aug. 29, 2003 — The combined assets of the nation’s exchange-traded funds (ETFs) dropped to $117.1 billion at the end of July, from $121.6 billion at the end of June, 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 July, 114 ETFs were in operation, the same as in the prior month. Of that total, 69 ETFs tracked domestic stock indexes and held assets of $104.9 billion; 41 ETFs tracked international/global equity indexes and held assets of $7.9 billion; and four bond index ETFs held assets of $4.3 billion.

The ICI noted that assets of domestic equity ETFs decreased by $4.7 billion, and international equity ETF assets increased by $234 million.

In addition, the value of all ETF shares redeemed exceeded that of shares issued by $7 billion. Equity index ETFs experienced a negative net issuance of $7.5 billion, while bond ETFs experienced a positive net issuance of $517 million. Gross issuance of all ETFs decreased in July to $5 billion from $8.3 billion in June, and redemptions increased to $11.9 billion from $7.4 billion in June.

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.