Bill Cara: ETF assets are growing rapidly, Fri., Oct. 28, 2005, 1:43 PM

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October 28, 2005

ETF assets are growing rapidly, Fri., Oct. 28, 2005, 1:43 PM

At the end of September, traders held $192.6 billion in 122 U.S.-stock ETFs, $52.8 billion parked in 48 international-equity funds, and six fixed-income ETFs, according to the Investment Company Institute. That's an increase Month over Month of $7.9 billion.

ETF's represent a cost-effective tool for investing in an index or across a sector or international market. The largest investment institutions now use ETF's as part of their strategies and tactics for capital management.

I recommend their use.

Posted by Posted by Bill Cara on October 28, 2005 01:43:22 PM | Category: ETF

Discourse

Hopefully, the growing use of ETF's will put a dent in the business of rip off mutual funds that charge excessive fees to underperform the market.

Posted by: posativnrg at October 28, 2005 2:09 PM [link]

I am shorting the XLF and I am in at 29.18. I will cover my short if it closes above 30.34 or so. What is up? I would think the FED is going to raise rates even more....so why would banks go up in this environment???

Posted by: holdenll at October 28, 2005 2:13 PM [link]

Higher long term rates good for banks in that they borrow short and lend long. A steepening yield curve is good for them.

Posted by: davep at October 28, 2005 2:50 PM [link]