ETF Assets Fall in September

October 22, 2001 ( - 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, according a report by the Investment Company Institute (ICI).

The value of shares issued topped shares redeemed by $1.72 billion, with gross issuance falling to $4.61 billion in September from $5.42 billion in August.   Redemptions increased slightly to $2.8 billion from $2.7 billion.

Broad-based domestic equity ETF assets fell to $56.21 billion at the end of September from an August total of $63.24 billion, while domestic sector/industry funds were down to $6.1 billion, from $6.72 billion in August. Global/international ETFs also slipped somewhat, to $1.94 billion from $2.09 billion a month earlier.

The ICI report includes 33 broad-based domestic equity ETFs, 33 domestic sector/industry focused funds, and 26 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.