UK - Total trading in Exchange Traded Funds (ETFs) for September reached a high of £657m - the highest value for the vehicle ever recorded in one month since the £488m mark in June, according to the London Stock Exchange.
Currently, 13 ETFs trade on the LSE. They are similar to other indexed mutual funds as they mirror the performance of a specific underlying market index. However, they differ in that they trade on a stock exchange and can be bought through shares and units.
However, in the US the take-up is far greater with ETFs making up 50% of all trades on the American Stock Exchange, and accounting for $70bn in market assets.
On a global basis, the ETF market has witnessed substantial growth - from $1bn at the end of 1995, to $86bn, year ending June 2001.
According to LSE, Barclays Global Investors still holds the lions share of the ETF product market in UK.
Other records for the month included, total UK equity trading at a high of 235,011 trades in September 21, 2001, breaking the previous record high of 202,602 set in April last year. In its September market report, LSE recorded 4.4 million trades - up 31% on September 2000.
Around 145,964 trades were executed on SETS – the Exchange's electronic order book – achieving another record, almost 50% higher than the 99,438 trades executed on June 15, 2001.
By Janet Du Chenne
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