Money

ETF Assets Dip Below $90 Billion After May Highs

Money

After clearing the $90 billion asset plateau for the first time in May, combined assets of the 102 exchange-traded funds listed in the U.S. fell to $88.95 billion in June, according to the latest figures from the Investment Company Institute.

Total ETF assets decreased by $3.85 billion in June, during which time the S&P 500 index dropped by over 7 percent. ETFs hitched to domestic benchmarks lost nearly $4 billion in assets, while those tied to international indexes gained nearly $1 billion, according to the ICI. The table below shows total net assets of U.S.-listed ETFs, most of which trade on the American Stock Exchange, going back to the beginning of 2001.

Month
ETF assets ($MM)
January 2001
72,134
February
64,343
March
66,006
April
73,330
May
72,773
June
75,559
July
75,520
August
72,085
September
64,345
October
69,421
November
78,846
December
82,993
January 2002
82,009
February
80,891
March
88,203
April
85,859
May
92,804
June
88,951
Source: Investment Company Institute, data as of end of June 2002

The value of ETF shares issued exceeded that of shares redeemed by $3.98 billion in June, according to the ICI.

Value of shares issued and redeemed by all ETFs ( in millions of dollars)

 
June 2002
May 2002
YTD-02
YTD-01
Gross Issuance
8,228
12,697
43,875
41,720
Gross Redemptions
4,247
3,789
21,559
24,423
Net Issuance
3,981
8,908
22,316
17,297
Source: Investment Company Institute, data as of end of June 2002

A Global View

Boston-based indexing giant State Street Global Advisors (SSgA) keeps tabs on ETFs that trade around the world, of which there are currently 257. The number of U.S.-domiciled funds increased to 106 with Friday's launch of four fixed-income iShares. Barclays Global Investors (BGI) said its new bond ETFs have already raked in a cool $3 billion in assets as of the end of trading yesterday. The timing of the launch appears fortuitous as nervous investors continue to flee sagging stock funds for bonds.

There are currently 21 global ETF providers managing over $115 billion in assets, according to SSgA. The four big domestic ETF players are SSgA, BGI, Bank of NY, and relative newcomer Vanguard. Vanguard offers two VIPERs with over $1 billion in assets combined.

San Francsico-based BGI is the largest global ETF provider in terms of number of funds (109), while SSgA is the asset king. However, BGI has been gaining market share ground in 2002.

Global ETF Managers - Funds, Assets, and Market Share
Fund Manager
# funds
Assets
Market Share
State Street
47
$38,743,701,162
33.6%
Barclays Global
109
$29,133,738,600
25.3%
Bank of NY
2
$25,174,229,050
21.9%
Vanguard
2
$1,006,217,430
0.9%
AXA Gestion
12
$240,013,638
0.2%
Benchmark Asset Mgt Co
1
$1,761,140
0.0%
Credit Lyonnais
2
$442,512,450
0.4%
Credit Suisse
1
$701,364,863
0.6%
Daiwa Asset Mgmt.
6
$1,753,242,621
1.5%
IndexChange
31
$2,857,713,704
2.5%
IndexCO
3
$495,158,360
0.4%
Merrill Lynch LDRs
2
$1,248,121,575
1.1%
Nikko Asset Mgmt.
2
$825,929,372
0.7%
Nomura Asset Mgmt.
7
$9,941,474,816
8.6%
Ofek Leumi
1
$388,430,499
0.3%
OM Group
1
$70,018,193
0.1%
Seligson
1
$10,340,983
0.0%
Merrill Lynch & Societe Generale LDRs
13
$296,472,135
0.3%
Societe Generale
4
$1,422,933,822
1.2%
TD Securities
4
$154,023,583
0.1%
UBS Asset Mgmt. Ltd.
6
$262,931,237
0.2%
Totals:
257
$115,170,329,234
100.0%
Source: State Street Global Advisors, data as of 7/29/2002

The table below shows the same data for the domestic ETF providers.

Domestic ETF Managers - Funds, Assets, and Market Share
Fund Manager
# funds
Assets
Market Share
State Street
21
$34,425,762,860
40.0%
Barclays Global
81
$25,455,461,890
29.6%
Bank of NY
2
$25,174,229,050
29.3%
Vanguard
2
$1,006,217,430
1.2%
Totals:
106
$86,061,671,230
100.0%

Source: State Street Global Advisors, data as of 7/29/2002