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Investing May 25, 2001
ETFs Blossom in April Markets
May 25, 2001 (PLANSPONSOR.com) - Total
exchange-traded fund (ETF) assets were $73.33 billion at the
end of April 2001, up more than 11% from a revised $66
billion in March, according to the Investment Company
Institute (ICI).
Reported by Nevin E. Adams
The increase was largely built on the strength of the stock market, as new issuance decreased to $5.60 billion from $12.34 billion in March, while redemptions increased to $5.95 billion from $3.42 billion. During the month the value of shares redeemed exceeded that of shares issued by $353 million. Last month that difference was $8,914 million, according to ICI.
ETFs are an investment company with shares that trade during the day on stock exchanges at market-determined prices. Investors may buy or sell ETF shares through a broker just as they would the shares of any publicly traded company.
Sector Surge
Broad based domestic ETFs increased to $64.7 billion from a revised $58.8 billion in March. Sector/industry focused ETFs enjoyed a near 24% rate of growth, closing April with nearly $7 billion in assets. That reversed a slight downturn in the category in March.
Global/International ETFs grew by 6.5%, totaling $1.917 billion at month-end.
There were fifty-nine ETFs tracking domestic stock indexes. Of these 29 used broad-based indexes and 30 targeted sector or industry indexes. There were 25 global/international ETFs, according to ICI.
Statistics contained in the monthly ETF report have been obtained from information provided to ICI by exchange-traded funds. Trust-issued receipts, such as Holding Company Depository Receipts (HOLDRS), are not included in the report because registered investment companies do not issue them.