| News
Roundup:
2001 ETF Assets, Vanguard Telephone Exchanges, Dow CDs
By John Spence
January 18, 2002
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Exchange-traded
fund assets grew significantly in 2001, according to year-end
statistics. Worldwide assets ballooned to $103.2 billion, an increase
of 39% from the previous year. On the domestic front, U.S.-based
ETF assets jumped 27% from last year to $83.1 billion.
International ETFs saw a 132% increase to over $20.0 billion,
and in Europe alone assets increased a whooping 715% to $5.5 billion,
from $0.7 billion in 2000.
| U.S. Exchange-traded
fund Assets |
| Fund manager |
# funds |
Assets |
Market share 2001 |
Market share 2000 |
| State Street |
21 |
$37.4 billion |
45.0% |
46.7% |
| Bank of NY |
2 |
$26.9 billion |
32.3% |
41.9% |
| |
77 |
$17.7 billion |
21.3% |
11.4% |
| |
1* |
$1.2 billion |
1.4% |
0.0% |
| Totals: |
101 |
$83.1 billion |
100.0% |
100.0% |
*Vanguard has since launched an Extended Market
VIPERs Source:
State Street
| International
Exchange-traded fund Assets |
| Fund manager |
# funds |
Assets |
Market share
2001 |
| Nomura Asset Mgmt. |
2 |
$5,048,264,123 |
25.1% |
| State Street |
17 |
$4,115,417,180 |
20.5% |
| Barclays Global |
27 |
$3,899,105,074 |
19.4% |
| IndexChange |
16 |
$1,278,434,323 |
6.4% |
| Merrill Lynch LDRs |
15 |
$1,227,528,009 |
6.1% |
| Societe Generale |
4 |
$994,270,966 |
4.9% |
| Daiwa Asset Mgmt. |
2 |
$743,891,177 |
3.7% |
| Credit Suisse |
1 |
$580,688,062 |
2.9% |
| Nikko Asset Mgmt. |
1 |
$545,137,776 |
2.7% |
| Ofek Leumi |
1 |
$516,526,777 |
2.6% |
| TD Securities |
4 |
$355,916,027 |
1.8% |
| IndexCO |
1 |
$319,694,935 |
1.6% |
| AXA Gestion |
3 |
$185,804,690 |
0.9% |
| UBS Asset Mgmt.
|
6 |
$181,338,208
|
0.9% |
| OM Group |
1 |
$103,420,552 |
0.5% |
| Totals: |
101 |
$20,095,437,882 |
100.0% |
*Source: State Street Global Advisors
The latest international ETF, the TOPIX Index Fund, trades on
the Tokyo Stock Exchange and is tied to the broad TOPIX index.
The fund, which is managed by Nikko Asset Management, has an expense
ratio of 0.11% and was launched on January 9.
Reach out and touch Vanguard
The Vanguard
Group announced that its legions of retail index fund investors
will soon be able to execute fund share exchanges over the telephone
or online. Currently, the Valley Forge-based fund shop mandates
that exchanges for domestic funds must be submitted in writing.
In all, 20 Vanguard funds will adopt the new exchange privilege.
To prevent market-timing and shareholder turnover in its index
funds, Vanguard will impose limits on how frequently shareholders
can telephone or online exchange out of a fund.
"We're confident that the stringent policy, coupled with
the comprehensive trading activity controls and intra-day cash
flow reporting that we've developed, will enable us to manage
the portfolios in the same highly efficient manner as in the past
and to match our benchmarks with a high degree of precision,"
said Gus Sauter, who manages several Vanguard funds, including
the behemoth Vanguard
500 index fund.
Vanguard said that it will still accept written exchange requests,
but that telephone and online exchanges have the potential to
cut costs for all fund shareholders.
Dow CDs for the masses
Certificates of deposits (CDs) with a rate of return linked to
the performance of the Dow
Jones Industrial Average will soon be available to bank customers
across the country. The Dow CDs, which are FDIC-insured, will
be available to more than 9,211 community banks and savings and
loan associations nationwide.
"This is an important step in our continuing effort to put
the blue-chip Dow Jones Industrial Average and the entire family
of Dow Jones indexes to work for individual investors and financial
institutions," said Michael A. Petronella, managing director
of Dow Jones Indexes, in a statement.
