A few commentators have recently pointed out that total ETF assets are down this year, and it's true: According to the American Stock Exchange, ETF assets under management in the U.S. fell about $50 billion in the first half of 2008, from $623 billion to $573 billion.
But those numbers reflect a tough period for stocks, with the S&P 500 down 12% and the MSCI EAFE Index of international stocks down 10%. As mentioned, investors actually poured an additional $23.2 billion of new money into ETFs, according to my research.
The ETF industry also laid the groundwork for continued growth:
- ETF product issuers launched 84 new funds, while 18 unsuccessful funds were closed.
- Five new ETF product issuers entered the market: Bear Stearns, ALPS, GreenHaven, Northern Trust and RevenueShares
On a company-by-company basis, Vanguard showed the strongest inflows, attracting more than $17.1 billion in new money. That was followed by ProShares at $9.8 billion, Van Eck at $3.3 billion, WisdomTree at $820 million and Rydex at $812 million.
On the flip side were SSgA, which saw $8 billion in net redemption activity, BGI with $1.4 billion in redemptions and HOLDRS with $1.2 billion in redemptions.
|ETF Issuers YTD Creation Activity - As Of June 30, 2008|
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