ETF Assets Increased $50B in July

Exchange-traded fund (ETF) industry assets rose $50 billion for the month of July – up 6.5%, according to the State Street Global Advisors (SSgA) ETF Snapshot. 

As of July 31, 2010, 917 ETFs, with assets totaling $822 billion, were managed by 33 ETF managers, the report said.  

The International and Size categories had the largest increases in AUM. The Commodity category saw the largest decline in assets, dropping $3.7 billion, or 4.7%.   

Large Cap had the largest increase in assets, up $6.7 billion followed by Small Cap with $3.3 billion. AllCap – Value was the only category with a decline in assets for the month, down $2 million.   

All Sector categories saw increases in assets in July with the exception of Materials, down $436 million, or 3.6%. Energy and REITs led asset increases, gaining $1.2 billion and $1.3 billion, respectively. 

All market ranges recovered in July, with Mid Caps up the most at 7.1%. The best performing area of the market YTD is Small Cap, returning 5.9%.   

By style, Mid Cap Growth was the top performer in July, returning 7.3%, followed by Small Cap Value at 7.2%. Year-to-date, the worst performer is Large Cap Growth, down 1.4%.   

All ten Sectors were positive this month; Telecommunication Services had the best performance up 9.4%. Year-to-date, the best performing sector is Energy, up 6.7%, followed by Industrials, up 6.3%.   

According to the Snapshot report, the top three managers in the U.S. ETF marketplace as of the end of July were BlackRock, SSgA, and Vanguard. Collectively, they account for approximately 84.4% of the U.S.-listed ETF market.   

Year-to-date, BlackRock’s market share fell 0.5% and State Street’s market share fell 1.1%, while Vanguard’s market share increased by 2%.   

The top three ETFs in terms of dollar volume traded for the month were the SPDR S&P 500 [SPY], iShares Russell 2000 [IWM], and PowerShares QQQ [QQQQ]. The top three ETFs in terms of assets for the month were the SPDR S&P 500 [SPY], SPDR Gold Shares [GLD], and iShares MSCI Emerging Markets [EEM].   

SPDR Barclays Capital High Yield Bond [JNK] saw the highest inflows, up $628 million, followed by Utilities Select Sector SPDR [XLU], up $615 million.