According to the Investment Company Institute (ICI) ETF assets rose by $6.55 billion from December totals, reflecting the overall rise in domestic stock prices. The increase came despite a decline in net issuance of ETFs to just $2.34 billion, from $10.77 billion in December.
There was also a dramatic increase in the amount of ETF sales, which at $3.99 billion were more than twice as high as the month before.
An exchange-traded fund is an investment company with shares that trade intraday 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.
Of the total tracked by ICI, broad-based funds outnumber sector/industry focused funds by $63.8 billion to just $6.3 billion – despite the fact that there are an equal number (28) of ETFs in each category.
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 they are not issued by registered investment companies.
« Hedging Boosts Average Feb. Hedge Fund Return