ETFs Start 2003 Headed South

February 26, 2003 ( - Assets in exchange-traded funds (ETF) dipped in January for the second month in a row to $95.6 billion from $102.1 billion in December.

December’s report was down from November’s $109.7 billion (See   ETFs Wrap Up 2002 on Down Note)


ETFs saw total domestic equity index assets drop to $86.8 billion in January from $92.9 billion in December, according to data supplied by the Investment Company Institute (ICI). Broad-based domestic ETFs saw a dropoff to $76.4 billion from $82.3 billion in December while sector/industry domestic ETFs also declined to $10.4 billion in January from December’s $10.5 billion.

Global/international ETFs dipped in January to $5.1 billion from December’s $5.3 billion. Bond ETFs also dropped to $3.68 billion in January from $3.9 billion in December.

Additionally, the value of ETF shares redeemed in January exceeded that of shares issued by $4.2 billion. The total number of number of ETFs stayed level in January at 113.

Shares of an exchange traded fund 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.