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Big Board Starts Trading Six More ETFs; MSCI to Introduce U.S. Benchmarks; July 2002 Major Index Returns

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The New York Stock Exchange today began trading six new additional exchange-traded funds on the basis of unlisted trading privileges (UTP). They include the four new bond iShares, the iShares MSCI Japan (EWJ), and the Vanguard Total Stock Market VIPERs (VTI).

The Big Board now trades a total of 37 ETFs and HOLDRs that together account for 94% of the ETF trading volume in the U.S., according to the exchange. The move underscores the NYSE's continuing attempts to gain market share in trading ETFs from its rival, the American Stock Exchange.

Many industry analysts have pointed out that cross-listing ETFs is a good thing for investors because it should lead to better pricing.

"Investors are the beneficiaries of the NYSE trading more ETFs on a UTP basis," said Lee Kranefuss, CEO of Barclays Global Investors' Individual Investor Business. "The increased competition will most likely tighten bid-ask spreads."

MSCI developing U.S. indexes

International benchmark heavyweight Morgan Stanley Capital International says it will launch a new family of domestic equity benchmarks in early 2003. According to a statement by MSCI, the new indexes will be broken down by market capitalization and style, as well as by sector. Growth and value will be determined by a new multi-factor approach, and the sectors will be broken down according to MSCI's Global Industry Classification Standard (GICS). For more on the indexes, see this style sheet (Adobe pdf file) from MSCI.

MSCI collaborated with Standard & Poor's to develop the GICS, but soon the two index providers will compete directly in the U.S. Additionally, both firms have announced they are launching hedge fund indexes that could be the basis for future index and exchange-traded funds.

July 2002 major index returns

Standard & Poor's Indexes
Index
July 2002
3 months
YTD
S&P 500
-7.80%
-15.00%
-19.93%
S&P 500/Barra Value
-10.81%
-16.10%
-19.25%
S&P 500/Barra Growth
-4.80%
-14.14%
-20.91%
S&P MidCap 400
-9.69%
-17.71%
-12.59%
S&P MidCap 400/Barra Value
-10.37%
-16.88%
-7.26%
S&P MidCap 400/Barra Growth
-8.98%
-18.72%
-18.09%
S&P SmallCap 600
-14.13%
-21.94%
-14.14%
S&P SmallCap 600/Barra Value
-16.26%
-23.04%
-11.68%
S&P SmallCap 600/Barra Growth
-11.96%
-20.97%
-16.96%
S&P 100
-6.27%
-13.45%
-20.80%
S&P 1000
-11.09%
-19.05%
-13.06%
S&P SuperComposite 1500
-8.18%
-15.47%
-19.21%
S&P REIT Composite
-5.09%
-1.17%
7.90%
Source: S&P Indexes, data as of 7/31/02[/:Author:]
Russell Indexes
Index
July 2002
3 months
YTD
Russell 3000
-7.95%

-15.57%

-19.22%
Russell 3000 Value
-9.71%
-14.48%
-13.23%
Russell 3000 Growth
-6.18%
-17.08%
-25.45%
Russell Midcap
-9.76%
-16.76%
-14.91%
Russell Midcap Value
-9.79%
-13.95%
-7.21%
Russell Midcap Growth
-9.72%
-22.08%
-27.51%
Russell 2000
-15.10%
-22.90%
-19.09%
Russell 2000 Value
-14.86%
-19.50%
-8.68%
Russell 2000 Growth
-15.37%
-27.07%
-30.05%
Russell 1000
-7.40%
-14.99%
-19.27%
Russell 1000 Value
-9.30%
-14.08%
-13.63%
Russell 1000 Growth
-5.50%
-16.31%
-25.13%
Russell Top 200
-6.63%
-14.42%
-20.65%
Russell Top 200 Value
-9.09%
-14.16%
-16.33%
Russell Top 200 Growth
-4.44%
-14.88%
-24.51%
Source: Russell Indexes, data as of 7/31/02[/:Author:]
Dow Jones Indexes
Index
July 2002
YTD
DJ Industrial Average
-6.00%
-13.38%
DJ EURO STOXX 50
-14.00%
-29.27%
DJ Asian Titans 50
-5.62%
2.72%
DJ Global Titans 50
8.78%
23.00%

Source: Dow Jones Indexes, data as of 7/31/02