Nov. 26, 2003 — The combined assets of the nation’s exchange-traded funds (ETFs) rose to $128.9 billion at the end of October, from $119.8 billion at the end of September, 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 October, 116 ETFs were in operation, one more than in the prior month. Of that total, 70 ETFs tracked domestic stock indexes and held assets of $114.0 billion; 41 ETFs tracked international/global equity indexes and held assets of $10.5 billion; and five bond index ETFs held assets of $4.3 billion.

The ICI noted that assets of domestic equity ETFs increased by $7.9 billion, and international equity ETF assets increased by $1.2 billion.

In addition, the value of all ETF shares issued exceeded that of shares redeemed by $1.7 billion. Equity index ETFs experienced a positive net issuance of $1.5 billion, while bond ETFs experienced a positive net issuance of $179 million. Gross issuance of all ETFs decreased in October to $7.6 billion from $10.9 billion in September, and redemptions decreased to $5.9 billion from $6.9 billion in September.

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.

Below is a list of the five largest ETFs:*

FUND NAMEASSETS (in billions)ONE YEAR RETURN (Through 10/31/03)*

  • SPDR 500 (SPY) $38.17+20.91%
  • Nasdaq 100 Trust Series I (QQQ) $22.08+43.30%
  • Diamonds Trust Series I (DIA) $6.03+19.57%
  • SPDR Mid Cap 400 (MDY) $5.13+30.73%
  • iShares S&P 500 Index Fund (IVV) $4.68+20.69%

*Source: Nuveen Investments.