Assets in U.S. listed Exchange-Traded Funds (
) and Exchange-Traded Notes (
) 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
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
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 (
) 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 (
) 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.