Tradeweb reports that its European-listed ETF marketplace maintained momentum in March amid market concerns over global trade disputes, technology stock pressures, and the wind-down of accommodative monetary policies.
Monthly activity reached EUR18.43 billion, the platform’s third best performance since its launch in October 2012. The share of European ETF transactions processed via Tradeweb’s Automated Intelligent Execution tool (AiEX) increased to 37.2 per cent.
Adriano Pace (pictured), managing director for equity derivatives at Tradeweb, says: “March was another strong month for European ETF trading on Tradeweb, and marked the end of a record-breaking quarter. Notional volume in the first three months of 2018 was just shy of EUR62.3 billion, up 38 per cent year on year.”
Equity-based ETFs saw net selling for the second consecutive month. Activity in the asset class accounted for 64 per cent of the total platform flow, beating the previous 12-month rolling average by two percentage points. In contrast, commodity ETFs saw their overall traded volume drop to 3 per cent, with ‘buys’ surpassing ‘sells’ by 12 percentage points.
Nearly EUR7 billion was executed in European and North American equity products, while Government Bonds proved to be the most heavily-traded fixed income ETF sector.
Four of the top 10 ETFs by traded volume in March offer exposure to fixed income assets. However, the global equity-focused Xtrackers MSCI World Swap UCITS ETF was ranked first for the second month in a row. The fund was also the most active ETF in the first quarter of 2018.