The London Stock Exchange Group (LSEG) is celebrating the 15th anniversary of the first Exchange Traded Fund (ETF) to list in London, highlighting the exceptional growth in industry, in the UK, Europe, and across the world.
There are now 791 ETFs trading on London Stock Exchange, the largest venue for ETFs in Europe, linked to indices that cover a very broad range of markets, such as the FTSE China A-50 and asset classes including fixed income and commodities.
The London ETF market has grown from GBP3.9 billion turnover in 2004 to GBP185.8 billion turnover in 2014, an increase of 4712 per cent in the last 10 years.
There are now 675 ETFs listed on Borsa Italiana, 80 of these track FTSE indices and nine are linked to Russell indices. European listed ETFs meanwhile, registered record inflows of EUR77 billion in 2014, more than triple the number in 2013.
Combined global AUM for FTSE and Russell linked ETFs is now a record high of USD385 billion, with over USD20 billion now linked to FTSE China indices alone.
Mark Makepeace, Group Director of Information Services, LSEG, & CEO of FTSE Group, says: “The growth of ETFs over the last fifteen years has been extraordinary, radically transforming investment strategy and placing increased focus on passive management. London Stock Exchange Group is proud of the important role it has played in this success, through our listing venues in London and Milan, as well as FTSE and Russell’s innovative benchmarks.
“While we don’t expect another 4000 per cent rise in turnover in the next decade, market appetite remains very strong and we expect further exceptional growth in these products in the coming years.”