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Category: US Equities
Q4 2005

Record issues of equity ETFs

Changing market structures

According to the Investment Company Institute, the number of ETFs increased from 151 in December 2004 to 201 in December 2005.

In December 2005, domestic equity index funds made up 73% of ETFs, international equity index funds were 24% of the total, and 3% were bond index funds.

Issues of equity-based exchange traded funds totaled $121.7 billion in Q4 2005 (annualized basis), according to Federal Reserve Flow of Funds table F123.

US Equities

Who is holding America’s stock proxies?

Over 55% of corporate stock that belongs to US Households and Nonprofit Organizations is held indirectly through intermediaries who have the power to vote these shares.

The major holders of these voting powers are pension plans and mutual funds.

This means that it is not shareholder-owners that control most US public corporations, but hired intermediaries, each of which have conflicts of interest.

1995-2004

Intermediaries control corporate America

Decline in Direct Equity Ownership

The percentage of equities belonging to households and nonprofit corporations increased from 42.8% to 55.4% between December 1995 and December 2004.

Over 55% of the equity shares of US corporations which belong, in the final analysis, to US households and nonprofit organizations, are held indirectly through intermediaries, such as life insurance companies, private pension funds, government retirement funds, and mutual funds.

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2010-10-29 16:02