The Markets May 30, 2008

ETFs Continue to Prosper

Assets of exchange-traded funds (ETFs) rose in April to $595.96 billion, marking an almost 30% increase in the last year.
Reported by

Data from the Investment Company Institute (ICI) show that the number of ETFs also increased slightly to 660. Although a slight increase in the month, it shows a dramatic increase over the 475 ETFs available in April 2007.

The nation’s total ETF assets were up by $24.85 billion, or 4%, since March of this year. In the last year, ETF assets have increased overall by 28%, or $129.41 billion, according to ICI.

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Individual types of ETFs experienced growth as well in the last year. Assets in domestic equity ETFs increased $64.86 billion since April 2007, and global equity ETFs assets rose $45.61 billion during this period. Assets of bond funds were $42.17 billion and hybrid funds were $170 million, the data show.

Despite the growth in ETF assets, ICI says the net issuance of ETFs is less than one year ago. The value of all ETF shares during April 2008 issued exceeded shares redeemed by $150 million; in April 2007, the net issuance was $6.63 billion.

The ICI data is available here.

The Markets May 30, 2008

Mutual Funds Enjoy Big Comeback in April

Assets in U.S. mutual funds got a 2.9% boost in April to $12.1 trillion, according to the latest Investment Company Institute (ICI) data.
Reported by

Long-term funds—stock, bond, and hybrid funds—had a net inflow of $31.3 billion in April compared with a March outflow of $449 million, according to an ICI press release.

According to ICI, stock funds enjoyed a $12.2-billion asset infusion in April, compared with an outflow of $9.43 billion in March. Among stock funds, world equity funds (U.S. funds that invest primarily overseas) posted an inflow of $5.99 billion for the month, while funds that invest primarily in the U.S. had an inflow of $6.22 billion.

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Hybrid funds posted an inflow of $2.31 billion in April, compared with an inflow of $193 million in March.

Bond funds had a $16.7-billion April inflow compared to an inflow of $8.78 billion in March. Taxable bond funds had an inflow of $13.3 billion, while municipal bond funds had an inflow of $3.45 billion.

The losers in April were money market funds, which posted an outflow of $47.8 billion, compared with an inflow of $56.6 billion in March. Funds offered primarily to institutions had an outflow of $14.2 billion, and funds offered primarily to individuals had an outflow of $33.6 billion.

The ICI data is available here.

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