ETF Assets Dip in April

May 31, 2002 ( - Assets in exchange traded funds (ETFs) totaled $85.8 billion in April, a 2.7% drop from the previous month, according to the Investment Company Institute (ICI).

The value of shares issued in April exceeded that of shares redeemed by $3.4 billion with gross issuance falling to $6.23 billion in April, down from the $6.83 billion in March. Redemptions in April were $2.81 billion, down significantly from $3.5 billion in March.

Sectors, Global Slip

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Broad-based domestic equity ETF assets dropped to $72.48 billion at the end of April, from a March total of $74.79 billion while domestic sector/industry funds were down slightly to $9.25 billion, from $9.55 billion in March. Global/international ETFs rose to $4.12 billion from $3.85 billion a month earlier.

The ICI report includes 35 broad-based domestic equity ETFs, 33 domestic sector/industry focused funds, and 34 global/internationally-oriented ETFs.

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.

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.