It appears that the downward sloping demand curve does apply to exchange-traded funds. ETF flows and trading, as well as the opening of new brokerage accounts, are all up at Vanguard since it dumped ETF commissions last month. The Associated Press' Mark Jewell reports that Vanguard's ETF trading activity rose 150 percent in May after the mutual fund giant eliminated commissions on its 46 ETFs on May 4.

The AP also reveals that Vanguard's new brokerage account growth climbed 90 percent last month, and its year-to-date ETF inflows through May more than doubled those of 2009, rising to $14 billion (and bringing Vanguard's ETF assets to $102 billion). 

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