US ETF/ETN assets top $900 bln


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Assets in U.S. listed Exchange-Traded Funds ( ETF ) and Exchange-Traded Notes ( ETN ) surpassed $900 billion for the first time, according to a recent data from National Stock Exchange, Inc. (NSX)

The assets in U.S. listed ETFs and ETNs stood at about $900.1 billion at September 2010 month-end, an increase of approximately 28 percent over September 2009 month-end when assets totaled $704.9 billion. 

At the end of September 2010 there were 1066 listed products, NSX data showed.

Net cash flows to ETFs for the month totaled $28 billion, bringing the year to date total to over $75 billion.  ETF/ETN notional trading volume during September 2010 totaled $1.3 trillion, representing 30 percent of all U.S. equity trading volume.

The NSX monthly statistics include shares of open-end exchange-traded products, encompassing U.S. listed shares of investment companies, grantor trusts, ETNs and commodity pools.

An exchange-traded fund ( ETF ) is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day. Most ETFs track an index, such as the S&P 500 or MSCI EAFE. ETFs considered as attractive as investments because of their low costs, tax efficiency, and stock-like features.

 An exchange-traded note ( ETN ) is a senior, unsecured, unsubordinated debt security issued by an underwriting bank. Similar to other debt securities, ETNs have a maturity date and are backed only by the credit of the issuer.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Commodities
Referenced Stocks: ETF , ETN

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