Tag Archives: Vanguard MSCI Emerging Markets

Apple’s Worth More Than Top 5 ETFs Combined

I don’t have anything to say about Steve Jobs that hasn’t already been said, except that there’s no doubt he was a genius. Much like Apple’s Think Different ad campaign, a genius isn’t just smart, but someone who sees or hears things so differently from the conventional wisdom that he completely changes the paradigm. While Dizzy Gillespie and Charlie Parker didn’t invent jazz, the BeBop they created was a sound so completely different than what had come before that they forever changed the way jazz was played. So while Jobs didn’t create the personal computer, MP3 player or the cell phone, his vision completely changed the way those industries operate.

Over the course of the many Steve Jobs accolades, I stumbled upon the fact that Apple’s market capitalization, at around $355 billion, is larger than the 5 largest ETFs combined. At the end of September, that was $247.5 billion, according to the National Stock Exchange.

The top five ETFs in order of size are:
SPDR S&P 500 (SPY) – $81.2 billion
SPDR Gold (GLD) – $64.1 billion
Vanguard MSCI Emerging Markets (VWO) – $39.8 billion
iShares MSCI EAFE (EFA) – $35.0 billion
iShares MSCI Emerging Markets (EEM) $27.5 billion.

Apple’s stock movement alone has more of an impact on the stock market than there five combined. Which I think nicely puts into perspective the common fallacy that ETFs have the potential to destroy the market.

ETF Assets Surpass $700 Billion

Total assets under management at U.S. listed exchange-traded funds (ETF) and exchange-traded notes (ETN) at the end of September surpassed $700 billion for the first time , according to the National Stock Exchange (NSX). The record close of $704.9 billion was a 5% increase over August’s $672.3 billion.

The September ETFs/ETNs net cash inflows came in at $9.2 billion, bringing the year-to-date total to more than $63 billion. The number of listed products at the end of September totaled 868, vs. 813 a year ago.

The top ten ETFs in terms of total assets.

1)SPDR S&P 500 (SPY) saw monthly net cash outflows of $1.795 billion and $29.725 billion year-to-date to post $70.364 billion in assets at the end of September, down from $90.131 billion a year ago.

2) SPDR Gold (GLD) reversed the Spyder’s outflows with montly net cash inflows of $2.005 billion, bringing its year-to-date total to $12.255 billion. The Gold Shares grew 64% year-over-year to become the second largest exchange-traded product at $35.054 billion, half the size of the Spyder.

Assets in Millions/Net Cash Flow YTD ’08/NCF YTD ’09/NCF Sept. 09
3) iShares MSCI-EAFE (EFA) $34,369 ($4,108) ($4,382) ($161)
4) iShares MSCI-Emerging Mkts (EEM)
$33,739 ($129) $1,881 $651
5) iShares S&P 500 (IVV) $20,494 $2,485 $1,733 $42
6) PowerShares QQQ (QQQQ) $17,058 $1,886 ($440) ($239)
7) iShares Barclays TIPS (TIP) $16,444 $3,147 $7,032 $847
8 ) iShares iBoxx Inv Grade Corp Bond (LQD)
$13,711 $1,002 $5,595 $534
9) Vanguard MSCI Emerging Markets (VWO)
$13,380 $2,789 $4,174 $770
10) iShares Russell 2000 (IWM) $12,884 $7,536 ($34) $300