ETF Assets Heat Up in August

September 18, 2002 ( - Total assets of exchange-traded funds (ETFs) took a healthy leap in August to $91.28 billion, up from July's $78.59 billion, according to data from the Investment Company Institute (ICI).

Broad-based ETF offerings also enjoyed a jump in August from $70.33 billion in July to $72.05 billion the following month.   Domestic sector/industry ETFs went up from $8.26 billion to $8.72 billion. Gross issuance of ETFs declined to $6.78 billion from July’s $9.19 billion while gross redemptions rose to $3.58 billion from $2.04 billion in July.

On a net/net basis, the value of shares issued exceeded that of shares redeemed by $3.19 billion in August. Sixty-eight ETFs tracked domestic stock indexes in August and held assets of $87.67 billion.

Among the domestic ETFs, 35 used broad-based indexes and 33 ETFs targeted sector or industry indexes. Statistics contained in the Institute’s 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.