Sage Advice Quarterly ETF Monitor 2Q2007

The ETF market continues to grow rapidly both in terms of assets and fund options adding roughly $50 billion in assets and launching 116 funds through the first four months of the year. As of April 30th roughly $472 billion were invested across 492 different ETFs. While ETF asset growth is on a similar pace to 2006, growth in number of funds, averaging about 30 new funds a month, is on pace to more than double last year’s record of 156 new funds. While this may not happen, considering there are currently more than 300 funds in registration with the SEC, it is not an unreasonable assumption. This year’s fund offerings have included more alternative weighted indexes, further drilling down into various sectors and assets classes (primarily real estate, healthcare, commodities and emerging markets), several new fixed-income ETFs, as well as further expansion of Proshare’s line of leveraged, short and leveraged-short ETFs.