Friday, October 5, 2007

ETFs Keep Getting More Popular

I've certainly been using ETFs but I didn't know they'd gotten so popular. There were a lot of mutual fund withdrawals in the last few months as the market dropped - but it looks like ETFs have just steadily gotten bigger. Ishares dominates the list, but that's not what seems important to me. I like to see liquidity; more investment certainly means more popularity (and perhaps an overpriced product) but it also means you won't have to worry about being able to trade the product.

Here are the top 10 ETFs in size:

1. SPDRs Trust S&P 500 (SPY) $91.6 billion

2. iShares MSCI EAFE (EFA) $47.6 billion

3. iShares MSCI Emerging Markets (EEM) $20.9 billion

4. Nasdaq 100 Trust (QQQQ) $19.9 billion

5. iShares S&P 500 (IVV) $17.8 billion

6. StreetTRACKS Gold Trust (GLD) $13.5 billion

7. iShares Russell 2000 (IWM) $13.5 billion

8. iShares Russell 1000 Growth (IWF) $12.7 billion

9. iShares MSCI Japan $11.2 billion (EWJ)

10. iShares Russell 1000 Value (IWD) $9.9 billion

Vanguard's VTI total market index would be #11 on the list. Note how big GLD has gotten in the last few years. I have no idea why the Japan sector ETF would be so big (#9). I assume it's because the Japanese economy had 1 good year last year and everyone thought that the country's economy would finally take off.

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