Tradeweb reports record numbers for ETF trading in September
Tradeweb writes that on the European platform, trading activity reached EUR69 billion in September, the second-highest level recorded for the month.
The proportion of transactions and notional volume completed via Tradeweb’s Automated Intelligent Execution (AiEX) tool amounted to 96 per centvcand 35 per cent, respectively.
Adam Gould, Global Head of Equities at Tradeweb, says: “Following a quieter August, institutional clients re-engaged with European ETFs in September, with platform activity rising 20 per cent month-over-month. Third-quarter volumes reached EUR203 billion, an increase of 16 per cent compared with the same period last year.”
All three ETF asset classes saw net buying during the month. Equity products accounted for 72 per cent of overall platform flow in September, three percentage points above the previous 12-month rolling average. Global Equities was the most heavily-traded ETF category, with nearly EUR17 billion in notional volume and recording the highest buy ratio among the top five categories at 64 per cent. North America Equities followed closely behind, with over EUR16.4 billion traded during the month.
Six of the 10 most actively-traded ETFs in September were equity-based, with two gold ETCs and two short-dated fixed income funds making up the remainder. The iShares Core MSCI World UCITS ETF climbed from seventh place in August to take the top spot, followed by the Invesco Physical Gold ETC and the UBS Core MSCI World UCITS USD Acc ETF. Of the top three, only the first two featured in the monthly top 10 throughout the quarter.
Turning to US-listed ETFs, LISTED ETFs, total consolidated US ETF notional value traded in September reached USD122 billion, up 52 per cent year-over-year. Third-quarter volume totalled USD308 billion, an increase of 44 per cent compared with the same period last year and the platform’s second-largest quarterly volume on record. The proportion of AiEX transactions and notional volume amounted to 55 per cent and 16 per cent, respectively.
Gould says: “Bond ETFs are taking a larger share of activity on our US platform, reaching
43 per cent in September, their highest proportion this year. The prominence of municipal and high-yield corporate bond funds in the top 10 shows how clients are using ETFs to target specific exposures within their fixed income portfolios.”
As a percentage of total notional value traded, equities accounted for 53 per cent and fixed income for 43 per cent, with the remainder comprising commodity and specialty ETFs. Fixed income’s share of platform activity increased steadily during the quarter, rising from 27 per cent in July to 41 per cent in August and 43 per cent in September.
Six of the 10 most actively-traded ETFs in September were fixed income-based, compared with eight in August and four in July.
The Vanguard 500 Index Fund ETF retained the top spot for the eleventh consecutive month, while the iShares Core S&P 500 ETF climbed from sixth place to rank second. Treasury funds, which occupied five of the top 10 positions in August, dropped out of the rankings entirely in September.