Tradeweb reports strong activity on it European ETF marketplace

Jul 19th, 2018 | By | Category: ETF and Index News

Activity on the Tradeweb‘s European ETF marketplace showed no signs of slowing down in June, as notional volume surpassed €23 billion for the second time on record.

Adriano Pace, managing director for equity derivatives at Tradeweb.

Adriano Pace, head of equities (Europe) at Tradeweb.

The month also marked the end of the platform’s second best-performing quarter since launch, with more than €62 billion executed in the April-June period.

Adriano Pace, head of equities (Europe) at Tradeweb, said, “Institutional trading of ETFs continues to grow on Tradeweb, as demonstrated by the 101% increase in European ETF average daily volumes year-over-year.

“Platform features such as automated trading, which now accounts for one third of our total flow in Europe, help clients reduce operational risk and focus on larger sized trades.”

Fixed income and commodity ETFs saw net buying in June, with ‘buys’ outstripping ‘sells’ by four and two percentage points respectively. Fixed income ETFs accounted for 30% of total platform trading activity, down by three percentage points compared to its 12-month rolling average. Trading activity in commodity ETFs matched its previous average at 5% of total flow.

In contrast, equity ETFs were tilted more to sell orders, with ‘sells’ outstripping ‘buys’ by two percentage points. Overall activity in the asset class beat the previous 12-month rolling average by three percentage points at 65% of the entire flow.

Source: Tradeweb.

Top ten ETFs by traded volume

Six equity ETFs and four fixed income funds make up the top 10 most-traded ETFs on Tradeweb’s European ETF marketplace during June.

The Vanguard S&P 500 UCITS ETF (VUSD LN) was June’s most heavily-traded product, after last topping the list in September 2017. VUSD tracks the blue-chip S&P 500 Index, the de-facto reference for the performance of US large-cap equities. The fund is the second largest ETF in Europe with $24.5 billion in assets under management. With a total expense ratio (TER) of just 0.07%, it offers a cost-compelling solution for investors looking for core US exposure.

Europe’s largest ETF – the $29.7bn iShares Core S&P 500 UCITS ETF (CSPX LN) – was second on the list. The fund also has a TER of 0.07%.

The most-traded fixed income ETF for June, coming in at fourth on the list, was the PIMCO Euro Short Maturity Source UCITS ETF (PJS1 GR). The fund is actively managed and aims to deliver returns above the Euro Over Night Index Average (EONIA) rate by investing in euro-denominated investment-grade bonds with very short maturity (mostly up to one year). It has €2.8bn in AUM and a TER of 0.35%.

Source: Tradeweb.

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