Tradeweb’s European listed ETF marketplace reports that November proved to be the strongest month since its launch four years ago. Total traded volume exceeded EUR15.1 billion, beating July’s previous record by more than EUR2.5 billion.
Adriano Pace, (pictured), managing director for equity derivatives at Tradeweb, says: “Platform activity began to significantly increase around the US general election, and continued to reach new heights following Donald Trump’s surprise victory. Corporate and Inflation-Linked Bonds were the only two ETF categories experiencing a drop in volumes compared to October, as the Trump administration seems to favour fiscal policies focused on higher inflation and faster interest rate hikes.”
Activity in equity-based ETFs amounted to 58 per cent of the overall platform flow, three percentage points lower than the previous 12-month rolling average. North America equities was by far the most heavily-traded sector, Tradeweb says, with nearly EUR2.5 billion in notional, of which 59 per cent was ‘buys’. Emerging Markets Equities came second with traded volume amounting to just below EUR1.8 billion. Similarly to its fixed income counterpart, the sector saw net selling during the month amid concerns over the impact of future US policies on trade and immigration.
Overall, there was a clear selling bias in fixed income ETFs, as ‘sells’ in the asset class outstripped ‘buys’ by eight percentage points. Government Bonds were once again the most popular fixed income category with more than EUR1.6 billion in traded notional. Meanwhile, activity in commodity-based ETFs outperformed the previous 12-month rolling average by two percentage points.
