The Markets March 6, 2007

ETF Assets Reached $431B in February

Exchange traded funds (ETFs) grew by about 2.1% in February to $431 billion, according to a new report from State Street Global Advisors (SSgA).
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U.S.-listed ETF assets rose by approximately $9 billion in February. Specialty, size, and style-based ETFs experienced considerable asset growth, respectively gaining $2 billion, $2 billion, and $1 billion in February, according to the SSgA data.

According to State Street, as of February 28, 2007, 432 ETFs in the U.S. were managed by 15 ETF managers. The top three managers in the U.S. ETF marketplace were Barclays Global Investors (BGI), State Street and Bank of New York. Collectively, they account for approximately 90% of the U.S.-listed ETF market.

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Some 45 new ETFs were kicked off during the month accounting for approximately $800 million in assets. Those included, according to State Street:

  • ProShares launching 34,
  • Wisdomtree launching six,
  • Powershares launching two,
  • First Trust launching two; and
  • Rydex launching one.

Notably, all asset-class groupings of ETFs experienced positive growth for the month, SSgA said. In terms of managers, BGI has the largest AUM with $254 billion in 128 ETFs, followed by State Street with close to $100 billion in 45 ETFs.

In February, the average daily volume for all U.S.-listed ETFs was $32 billion, which represents roughly 7% of the total value of the U.S. ETF market.

The top three U.S. ETFs in terms of dollar volume traded for the month were the S&P 500 SPDR, NASDAQ-100 Index Tracking Stock, and the iShares Russell 2000 Index Fund.

The SSgA report also indicated that, during February:

  • Size-based ETFs saw assets grow by close to $2 billion. The iShares Russell 2000 ETF added over $2 billion for the month alone.
  • Style-based ETFs added close to $1 billion.
  • Sector-based ETFs increased by nearly $500 million.
  • International ETFs grew by approximately $1 billion.
  • Fixed Income ETFs added just over $500 million.
  • Specialty ETFs increased approximately $2.1 billion.
  • Commodity ETFs grew by close to $800 million.

In terms of style, growth-oriented ETFs outpaced their value counterparts, though both added significant assets.

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