ETF Fund Flows (Week Ending 2/29/08)

By Matthew Hougan

The exchange-traded fund industry stemmed the wave of redemptions it suffered in most of February, posting $3.3 billion in net creation activity for the week ending February 29, 2007. The flows came despite the fact that no single fund had more than $550 million in creation activity. However, the number of funds posting net creation activity far outweighed the number posting net redemption activity, 179 to 85.

Largest Net Creations

The Select Sector SPDR - Financial (XLF) led all funds with nearly $550 million in net creation activity, reflecting the continued intense interest in the financial space. There's no way to know if this represents a desire to go long on the part of investors, or if the shares were created to facilitate short sales. An additional four Select Sector SPDR funds made it in the top twenty this week, with Energy (XLE), Materials (XLB), Consumer Discretionary (XLY) and Industrials (XLI) making the

Beyond that, there were again strong flows into the ProShares family - and specifically into its UltraShort ETFs. The leading precious metals bullion ETFs, the streetTRACKS Gold Shares (GLD) and the iShares Silver Trust (SLV) also made notable appearances on the list of fast-growing funds.

Top 20 ETFs By Creation Activity - Week Ending 2/29/08
Fund	Ticker	Creation Shares	Dollar Value
Select Sector SPDR-Financial	XLF	20,500,000	$549,605,000
iShares MSCI-Emerging Markets	EEM	3,000,000	$436,350,000
Select Sector SPDR-Energy	XLE	4,250,000	$334,262,500
ProShares UltraShort S&P 500	SDS	4,725,000	$289,642,500
Select Sector SPDR-Materials	XLB	6,500,000	$275,210,000
iShares Nasdaq Biotech	IBB	3,550,000	$274,415,000
streetTRACKS Gold Trust	GLD	2,700,000	$258,930,000
Vanguard Mid-Cap ETF	VO	3,600,100	$257,299,147
Select Sector SPDR-Consumer Discretionary	XLY	7,400,000	$237,392,000
iShares S&P Latin America 40	ILF	750,000	$203,317,500
Market Vectors--Agribusiness ETF	MOO	3,250,000	$189,670,000
ProShares UltraShort Oil & Gas	DUG	5,175,000	$185,316,750
Vanguard Small-Cap ETF	VB	2,900,000	$185,252,000
iShares MSCI-Canada	EWC	5,100,000	$168,351,000
Select Sector SPDR-Industrial	XLI	4,350,000	$162,298,500
iShares Lehman TIPS Bond	TIP	1,400,000	$152,782,000
iShares MSCI-Taiwan	EWT	9,600,000	$151,488,000
iShares Russell MidCap Value	IWS	1,000,000	$134,130,000
iShares Silver Trust	SLV	700,000	$133,469,000
ProShares UltraShort Russell2000	TWM	1,575,000	$127,023,750

Data from the American Stock Exchange.

Largest Net Redemptions

The S&P 500 SPDR (SPY) leads the redemption list yet again, making five straight weeks of large-scale redemptions. The fund lost $1.2 billion in net redemption activity last week, bringing the five-week running redemption total to $17.3 billion. SPY was the only fund with more than $1 billion in net redemptions.

After SPY, the list of redemptions highlights mainline index funds: the S&P 400 MidCap SPDR (MDY), the Dow Diamonds (DIA), and some mainline overseas funds like the iShares MSCI EAFE Fund (EFA).

Top 20 ETFs By Redemption Activity - Week Ending 2/29/08
Fund	Ticker	Creation Shares	Dollar Value
S&P 500 SPDR	SPY	(8,550,000)	($1,171,521,000)
S&P 400 MidCap SPDR	MDY	(2,975,000)	($440,002,500)
iShares MSCI-EAFE	EFA	(4,800,000)	($353,472,000)
DJIA DIAMONDS	DIA	(2,650,000)	($333,502,500)
iShares S&P 100 Index	OEF	(4,400,000)	($278,916,000)
iShares Russell 1000 Growth	IWF	(3,350,000)	($189,107,500)
iShares Russell 2000	IWM	(2,600,000)	($182,910,000)
iShares Russell 2000 Growth	IWO	(2,200,000)	($166,166,000)
iShares S&P 500/BARRA Growth	IVW	(2,350,000)	($152,397,500)
iShares S&P 500	IVV	(1,000,000)	($137,290,000)
iShares S&P Europe 350 Index	IEV	(1,000,000)	($106,120,000)
iShares MSCI-Japan	EWJ	(7,800,000)	($100,698,000)
iShares Lehman 20+ Year Treasury Bond	TLT	(900,000)	($83,187,000)
iShares Lehman 7-10 Year Treasury Bond	IEF	(800,000)	($71,624,000)
iShares Russell 1000	IWB	(950,000)	($71,060,000)
iShares MSCI-Spain	EWP	(1,125,000)	($65,936,250)
iShares Russell 1000 Value	IWD	(850,000)	($64,812,500)
iShares MSCI-Singapore	EWS	(4,800,000)	($61,104,000)
iShares S&P SmallCap 600/BARRA Value	IJS	(600,000)	($40,152,000)
Oil Services HOLDRS	OIH	(225,500)	($39,751,140)

Data from the American Stock Exchange.

Creation Activity By Provider

ProShares tops the list of family creation activity this week, with $884 million in net creation activity. Vanguard is a close second at $738 million, followed by Van Eck ($362 million), iShars ($349 million) and SSgA ($301 million).

Only two fund groups suffered net redemptions last week: Fidelity at $27 million and SPA ETFs at $2 million.

Creation/Redemption Activity By Fund Company - Week Ending 2/29/08
Fund Company	Net Creation/Redemption Activity
ProShares	$883,751,250
Vanguard	$737,747,921
Van Eck	$362,063,000
iShares	$349,274,150
SSgA	$301,036,000
PowerShares	$278,539,000
Victoria Bay	$137,055,000
Rydex	$108,759,200
WisdomTree	$86,419,000
Claymore	$61,374,000
HOLDRS	$24,865,563
Greenhaven	$14,180,000
MacroShares	$8,018,000
Xshares	$5,104,000
First Trust	$4,784,500
Focus Shares	$0
Revenue Shares	$0
Ziegler	$0
Ameristock	$0
SPA	($2,128,000)
Fidelity	($26,718,000)

Data from the American Stock Exchange.

ETF Assets By Fund Family

BGI continues to dominate the ETF industry, with a 54% share of industry assets. SSgA holds 24% of industry assets, while Vanguard and PowerShares hold 8% and 6% respectively. ProShares is moving up fast, with $15 billion in assets.

Assets By ETF Family - Sorted By Total Assets As Of 2/29/08
Fund Company	Total Assets
BGI	$313,401,061,150
SSgA	$140,871,012,152
Vanguard	$44,079,186,264
PowerShares	$36,558,861,514
ProShares	$15,105,312,640
HOLDRS	$7,399,857,288
Van Eck	$5,511,841,850
Rydex	$5,391,031,787
WisdomTree	$4,331,584,000
Claymore	$1,961,255,380
Victoria Bay	$1,020,441,000
First Trust	$946,563,904
Xshares	$254,173,116
Fidelity	$80,154,000
MacroShares	$78,175,500
Greenhaven	$31,905,000
Focus Shares	$23,930,867
SPA	$19,231,774
Revenue Shares	$15,289,281
Ameristock	$13,195,728
Ziegler	$4,918,440