October ETF Roundup: The Cash Keeps Coming

by on November 6, 2009 | ETFs Mentioned:

The October numbers for the ETF industry are out, and it was another good month across the board. Total ETF/ETN assets now stand at more than $707 billion based on data reported by the National Stock Exchange, up from about $705 billion in September. Total cash inflows for the month totaled $8.2 billion, with almost half of that total attributable to two emerging markets funds: the iShares MSCI Emerging Markets Index Fund (EEM) brought in $1.8 billion on the month, while Vanguard’s MSCI Emerging Markets ETF (VWO) took in $2.2 billion.

October Was A Treat For The ETF IndustryDomestic equities actually saw cash outflows of nearly $5 billion in October, led by $2.3 billion in outflows from SPY, which has seen AUM decline from $79 billion a year ago to about $67 billion today. But these outflows were more than offset by huge amounts of cash flooding into global and international equities ($7.5 billion) and fixed income ($3.1 billion). Global equities have now seen year-to-date inflows of more than $24 billion, while almost $35 billion has flowed into fixed income funds.

Among issuers, iShares and State Street saw total ETF assets slide slightly, while Vanguard and PowerShares saw upticks. Vanguard ETF assets now stand at about $80 billion, an increase of 100% over October 2008 levels. PowerShares crossed the $40 billion mark in October, and has seen assets grow by nearly 50% from year ago levels.

Issuer October 2008 AUM October 2009 AUM YOY Growth
iShares $232.3 billion $343.6 billion 48%
State Street $143.5 billion $159.7 billion 11%
Vanguard $40.2 billion $80.4 billion 100%
Invesco PowerShares $27.3 billion $40.0 billion 47%
ProShares $19.1 billion $25.2 billion 32%

Investors also continued to show their desire for leveraged and inverse ETF products in October, as Direxion and ProShares took in nearly $1 billion in cash during the month. Since July, when several brokerages began suspending the use of leveraged ETFs in client portfolios, the aggregate assets under management at Direxion and ProShares has remained stable, and these two firms have seen cash flows of more than $13.5 billion so far in 2009.

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Disclosure: No positions at time of writing.