ETF Asset Growth Overcomes October Redemptions

November 21, 2001 ( - Assets invested in the nation's exchange-traded funds (ETFs) rose 7.8% to total $69.42 billion at the end of October, according to the Investment Company Institute.

Assets of domestic ETFs increased by $4.77 billion during the month, while assets of international ETFs increased by $304 million.

An ETF is similar to a mutual fund but trades like a single stock. Like a mutual fund, an ETF is a basket of stocks, most typically reflecting a particular index, specific market or geographic sectors.

Gross issuance in October increased to $4.95 billion from $4.62 billion in September, but redemptions also increased ? from $2.89 billion in September to $4.09 billion last month.

Sixty-seven ETFs tracked domestic stock indexes in October and had assets of $67.17 billion. Among those domestic ETFs, 34 used broad-based indexes while 33 targeted sector or industry indexes.

Assets invested in exchange traded funds (ETF) totaled $64.35 billion at the close of September, down dramatically from $72.08 billion a month earlier (see ETF Assets Fall in September ).