Assets of exchange-traded funds (ETFs) rose in June by $4.27 billion, or 1.8%, according to data released yesterday by the Washington-based Investment Company Institute.
Total assets in the funds--which have continued for some time now to enjoy greater popularity because, unlike a mutual fund, they can be rapidly bought and sold like a stock--now stand at $242.66 billion. Equity index ETF assets, in particular, rose by $3.80 billion to $230.24 billion in the month. Bond index ETF assets were up by $464 million to $12.42 billion. Assets of domestic equity ETFs surged by $1.39 billion, and international equity counterparts were up by $2.41 billion, the ICI said.
During June, the value of all ETF shares issued exceeded that of shares redeemed by $665 million. Equity index ETFs witnessed a positive net issuance of $224 million, while bond ETFs enjoyed a positive net issuance of $442 million.
In other June results, the ICI indicated that ETFs that track domestic stock indexes held assets of $189.51 billion. Another 46 ETFs tracked international equity indexes and held assets of $40.73 billion. As of June, there are six ETFs tracking bond indexes.