On September 13, the Investment Company Institute (ICI) reported that the estimated value of all exchange-traded fund (ETF) shares issued for the week ended September 7, 2016 declined by 12% week-over-week.
The ICI reported that the estimated net issuance of all ETF shares amounted to $4.53 billion for the week, compared to $5.17 billion for the week ending August 31. (Source: “Estimated ETF Net Issuance September 13, 2016,” Investment Company Institute, September 13, 2016.)
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Over the past several weeks, the net issuance of ETF shares has been declining. In the week ending August 10, net issuance of all ETF shares totaled $14.01 billion. Over the course of a four-week period, this represents a decline of 67.67% in weekly net issuance.
Looking deeper into ETF net issuance, for the week, all Equity ETFs net issuance amounted to $3.41 billion. A week earlier, this amount was $4.59 million. This represents a decline of close to 26.00% week-over-week.
For the week, net issuance of Domestic equity ETFs, and World equity ETFs was $2.48 billion and $927 million, respectively. In the week ending August 10th, Domestic equity ETFs’ issuance was 3.65 billion and World equity ETFs issuance was $946 million.
Hybrid ETFs’ net issuance was $28.0 million, compared to $30.0 million in the prior week. Hybrid ETFs are funds that could invest in both stocks and fixed income securities.
Bond ETFs have become less popular. For the week ending September 7, net bond ETF issuance was recorded at just $630.0 million; a week earlier, it was $1.13 billion. This represents a decline in issuance of over 44% week-over-week.
Commodity ETFs—funds that invest in commodities, currencies and futures—were the only ETFs that didn’t witness a decline in net issuance. They had an estimated net issuance of $458 million for the week. In the previous week, these ETFs had a negative net issuance of $601 million.
At this time, the monthly net issuance of all ETFs for the month of August is not available. Between January and July, $112.35 billion in ETFs was issued; that number was $46.88 billion in July. This was the highest monthly amount since December of 2014. (Source: “Historical Flow Data,” Investment Company Institute, last accessed September 14, 2016.)
