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By Matthew Hougan

Redemptions returned to the exchange-traded funds industry last week, as investors pulled $1.2 billion from ETFs for the week ending March 7, 2008. Poor market performance meant that total assets in ETFs fell a sharp $20.9 billion, and now stands at just $556 billion.

Once again, however, the number of funds posting net creation activity far outweighed the number posting net redemption activity, 138 to 96.

Largest Net Creations

A few important facts stand out about the list of ETFs enjoying the highest creation activity. For starters, just nine of the funds were equity funds, despite the fact that the vast majority of ETFs are equity ETFs.

Five fixed-income funds made it into the Top 20 this week, headlined by the iShares Lehman TIPS Bond Fund (NYSEARCA:TIP), which was likely helped by rising inflation expectations.

Six commodity-focused ETFs made the list, headlined by the PowerShares DB Agriculture Fund (NYSEARCA:DBA), which had $264 million in net creation activity.

The other interesting thing is that, for the first time in recent history, two leveraged long ProShares make the list: the ProShares Ultra Financials (NYSEARCA:UYG) and ProShares Ultra QQQ (NYSEARCA:QLD).

[Editor's Note: The following tables contain the correct creation/redemption data for the week ending March 7, 2008. The original article included incorrect data due to a spreadsheet error.]

Largest Net Creation Activity: Week Ending March 7, 2008

Fund Name

Ticker

Net Assets

Net Creation Activity

iShares Russell 2000

IWM

$8,763,534,000

$750,121,500

DJIA DIAMONDS

DIA

$8,655,566,652

$656,888,500

PowerShares DB Agriculture Fund

DBA

$3,027,016,000

$263,936,000

streetTRACKS Gold Trust

GLD

$20,244,291,000

$259,173,000

iShares Lehman TIPS Bond

TIP

$6,617,786,000

$252,839,000

iShares S&P Latin America 40 Index

ILF

$3,509,478,000

$228,879,000

iShares Russell 1000

IWB

$3,657,200,000

$206,944,000

SPDR Lehman International Treasury Bond

BWX

$609,984,000

$180,736,000

SPDR S&P Oil & Gas Exploration & Production

XOP

$301,484,000

$157,412,000

iShares Lehman MBS Fixed-Rate Bond Fund

MBB

$512,040,000

$120,480,000

ProShares Ultra Financials

UYG

$511,940,250

$117,978,000

iShares MSCI-Taiwan

EWT

$3,171,860,000

$113,050,000

iShares Lehman Aggregate Bond

AGG

$8,471,383,000

$111,067,000

iShares S&P 500/BARRA Growth

IVW

$5,898,310,000

$105,995,000

SPDR S&P Metals & Mining ETF

XME

$612,457,000

$99,616,500

ProShares Ultra QQQ

QLD

$1,009,368,750

$98,475,000

iShares iBoxx $ Investment Grade Corporate Bond

LQD

$3,421,368,000

$93,879,000

iShares COMEX Gold Trust

IAU

$1,959,705,000

$81,855,000

PowerShares DB Commodity Index Tracking Fund

DBC

$2,309,384,000

$74,980,000

Vanguard Total Market ETF

VTI

$9,576,257,676

$72,132,530

Data from the American Stock Exchange

Largest Net Redemptions

The great drawdown in the S&P 500 SPDR (NYSEARCA:SPY) continued this week, with investors pulling $3.4 billion out of the fund. That makes it six straight weeks of large-scale redemptions, with the total redemption value rising to $20.7 billion.

SPY was hardly alone with large-scale redemptions, however. Six funds notched $1 billion-plus redemptions this week, with popular names like the iShares MSCI Emerging Markets (NYSEARCA:EEM) and iShares MSCI EAFE Fund (NYSEARCA:EFA) holding court near the top of the list.

Largest Net Redemption Activity: Week Ending March 7, 2008

Fund Name

Ticker

Net Assets

Net Creation Activity

S&P 400 MidCap SPDR

MDY

$7,093,400,160

($650,116,500)

Select Sector SPDR-Financial

XLF

$4,800,392,774

($446,121,000)

Select Sector SPDR-Energy

XLE

$5,348,158,909

($350,935,500)

iShares FTSE/Xinhua China 25

FXI

$5,490,953,000

($307,837,000)

S&P 500 SPDR

SPY

$65,253,869,743

($255,040,500)

iShares S&P 500

IVV

$16,969,680,000

($248,976,000)

ProShares UltraShort FTSE/Xinhua China 25

FXP

$621,580,500

($234,987,750)

iShares DJ US Transportation

IYT

$227,220,000

($231,277,500)

Select Sector SPDR-Utilities

XLU

$1,768,011,588

($227,640,000)

Vanguard Mid-Cap ETF

VO

$1,012,124,344

($203,280,000)

Vanguard Small-Cap ETF

VB

$979,315,383

($186,465,000)

iShares DJ US Real Estate

IYR

$1,540,458,000

($185,814,000)

SPDR S&P Retail ETF

XRT

$171,024,000

($175,605,000)

iShares MSCI-EAFE

EFA

$46,012,140,000

($172,008,000)

iShares MSCI-EMU

EZU

$2,571,426,000

($169,312,000)

ProShares UltraShort QQQ

QID

$1,513,867,500

($157,177,500)

iShares Nasdaq Biotech

IBB

$1,273,316,500

($150,449,500)

Oil Services HOLDRS

OIH

$2,272,831,592

($132,840,856)

iShares MSCI-Emerging Markets

EEM

$25,268,640,000

($103,560,000)

iShares S&P SmallCap 600

IJR

$3,723,637,500

($99,297,000)

Data from the American Stock Exchange

ETF Industry Analysis

ProShares was by far the fastest-growing ETF provider last week, with total assets under management rising $905 million to top the $16 billion mark. It wasn't due to investor interest, however; there were actually net redemptions in the funds. Instead, the strong downward movement in the market helped boost total assets, as the fund's assets are predominantly in short and leveraged short funds.

On a pure creation basis, Vanguard was the most popular fund family last week, pulling in over $600 million in net creation activity. That, however, was overwhelmed by the broader market movements, and Vanguard ended up with assets down over $1.3 billion for the week.

ETF Fund Families Sorted By Weekly Asset Growth-Week Ending 3/7/08

ETF Family

Assets Change

Creation Activity

Total Net Assets

ProShares

$904,570,590

($199,833,750)

$16,009,883,230

Victoria Bay

$113,527,000

$83,486,000

$1,133,968,000

MacroShares

$10,022,500

$10,022,500

$88,198,000

GreenHaven

$3,565,000

$3,547,000

$35,470,000

Ziegler

$2,128,280

$2,318,000

$7,046,720

Xshares

-

($10,174,543)

$257,736,591

SPA

($1,040,562)

-

$18,191,212

Fidelity

($2,052,000)

-

$78,102,000

FocusShares

($2,183,217)

-

$21,747,650

RevenueShares

($3,685,130)

($2,531)

$14,426,282

First Trust

($76,499,295)

($26,845,000)

$870,064,608

Claymore

($116,788,812)

$6,562,000

$1,844,466,568

WisdomTree

($176,301,745)

$293,292,500

$4,225,342,731

HOLDRS

($289,675,818)

($184,742,861)

$7,110,181,470

Rydex

($310,600,598)

($677,134,571)

$5,479,030,960

PowerShares

($576,068,882)

$471,204,500

$35,982,792,632

Van Eck

($860,587,450)

($560,987,400)

$5,463,188,800

Vanguard

($1,351,410,035)

$630,573,348

$41,915,998,229

BGI

($11,847,093,750)

($351,667,750)

$301,553,967,400

SSgA

($26,633,208,045)

($11,099,777,083)

$134,078,715,108

Data from the American Stock Exchange

ETF Assets By Fund Family

IndexUniverse.com's ETF industry league table remains largely unchanged for the week, with BGI holding onto the top slot at $301.6 million in assets.

Assets By ETF Family-Sorted By Total Assets As Of 3/7/08

Fund Company

Total Assets

BGI

$301,553,967,400

SSgA

$134,078,715,108

Vanguard

$41,915,998,229

PowerShares

$35,982,792,632

ProShares

$16,009,883,230

HOLDRS

$7,110,181,470

Rydex

$5,479,030,960

Van Eck

$5,463,188,800

WisdomTree

$4,225,342,731

Claymore

$1,844,466,568

Victoria Bay

$1,133,968,000

First Trust

$870,064,608

XShares

$257,736,591

MacroShares

$88,198,000

Fidelity

$78,102,000

GreenHaven

$35,470,000

FocusShares

$21,747,650

SPA

$18,191,212

RevenueShares

$14,426,282

Ziegler

$7,046,720

Data from the American Stock Exchange

Source: ETF Fund Flows (Week Ending 3/7/08)