ETF assets down as shares increase

U.S. exchange traded fund assets totaled about $575 billion as of June 30, down 5.4% from the beginning of the year, according to a report released today by State Street Global Advisors of Boston. The drop in assets is attributable to declining equity valuations, as the number of ETF shares outstanding increased 9% during the first half, according to the report. “Despite a sharp decline for U.S. equities in the first half of 2008, investors continued to increase their appetite for ETFs, which is a testament to the increasingly vital role ETFs play in a growing number of portfolios and strategies,” Tom Anderson, head of strategy and research for State Street’s intermediary business group, said in a statement.