Jan. 28, 2003 — The combined assets of the nation's

exchange-traded funds (ETFs) totaled about $102.1 billion at the end of

December, down from $109.7 billion at the end of November, according to data

released by the Investment Company Institute (ICI).

At the end of December, 113 ETFs were in operation, down from a revised

figure of 116 in the prior month. Of that total, 66 ETFs tracked domestic

stock indexes and held assets of $92.9 billion. Thirty-nine ETFs tracked

international/global equity indexes and held assets of $5.3 billion. Eight

bond index ETFs held assets of $3.9 billion.

The ICI noted that assets of domestic equity ETFs decreased by $7.63

billion, while international equity ETF assets increased by $45 million.

In addition, the value of all ETF shares redeemed in December exceeded

that of shares issued by $449 million, the ICI said. All equity index ETFs

experienced a negative net issuance of $390 million, while bond ETFs

experienced negative net issuance of $59 million.

Gross issuance of all ETFs increased in December to $9.98 billion from

$7.31 billion in November, and redemptions increased to $10.43 billion from

$5.40 billion in November.

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.

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