ETFs Wrap Up 2002 on Down Note

January 28, 2003 ( - Assets in exchange-traded funds (ETF) dipped in December to $102.1 billion from November's $109.7 billion.

ETFs saw total domestic equity index assets drop $7.59 billion to $92.9 billion from a revised $100.5 billion in November according to data supplied by the Investment Company Institute (ICI) (See   ETF Assets Up In November).   Broad-based domestic ETFs saw a dropoff to $82.3 billion from the revised $89.1 billion in November while sector/industry domestic ETFs also declined to $10.5 billion in December from November’s $11.3 billion.

Global/international ETFs had one of the few increases over the month from a revised $5.2 billion in November to $5.3 billion last month.Bond ETFs also increased a bit from $3.8 billion in November to $3.9 billion in December.

Additionally, the value of ETF shares redeemed exceeded that of shares issued by $449 million.The total number of number of ETFs fell from 116 in November to 113 last month.

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.