Exchange traded fund (ETF) usage was recently explored by the Advisor Perspectives Universe.

The data, gathered on Feb. 28, was interesting:

  • ETFs now hold twice the assets of
    index funds (70.3% vs. 29.7%).  ETF assets increased from 65.0% to
    70.3% over the prior five months.            
  • ETFs and Index Funds now represent 32.9% of total mutual fund assets, up from 29% on Sept. 30, 2007 and 27% on June 30, 2007.
  • ETFs
    and Index Funds now represent 6.4% of total marketable securities in
    the AP Universe, up from 4.6% on Sept. 30, 2007 and 3.9% on June 30, 2007.
  • Holdings
    tied to broad-based indexes increased, but still represent a relatively
    small portion of overall assets in the AP Universe. Holdings tied to
    the S&P 500 increased from 17.3% to 24.5% of total mutual fund
    assets from Sept. 30, 2007 to Feb. 28. Holdings tied to the EFA increased
    from 17.5% to 20.4% over the same time period. Holdings tied to the
    total market decreased slightly, from 4.5% to 4.3%.
  • Holdings
    in sector-based ETFs decreased consistently from Sept. 30, 2007 to Feb. 28 (as
    a percentage of mutual fund assets) and continue to remain a small
    percentage of ETF holdings.

For more interesting numbers and insight, check out the tables on the site.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.