Volatility Pushes ETF Trading To Record High In October

November 06, 2014

Trading of exchange traded funds on the London Stock Exchange hit a record high in October at £6.2 billion as market volatility soars.

According to data from the exchange, the 20 most traded ETFs varied across assets classes with equity and fixed income both being traded regularly.

The FTSE 100 ETFs and S&P 500 ETFs topped the charts for most trades and value traded. However, the iShares J.P. Morgan $ Emerging Markets Bond ETF (IEMB) was also in the top 10, showing that investors were in and out of fixed income as well as equities.

ETFs with exposure to the FTSE 100 accounted for £895 million of the £6.2 billion (14.4 percent of total ETF value traded for October 2014).

Adam Laird, head of passive investing at Hargreaves Lansdown said that the main reason for this record trade month was volatility. “October was an incredible month with markets falling in the first half then recovering spectacularly. It is also likely that the commodities falls were a factor too.”

The value of the Vix, which is the generally accepted broad measure of market volatility, saw monthly average daily volume in VIX futures (how the Vix is traded) also reach a record high in October with 323,761 contracts traded per day.

The top ten traded ETFs by value were:

  1. iShares FTSE 100 ETF (ISIF), traded 27,577 times, worth £580.4 million
  2. Vanguard S&P 500 UCITS ETF (VUSD) traded 4,144 times, worth £423.4 million
  3. Vanguard FTSE 100 UCITS ETF (VUKE) traded 2,471 times, worth £314.1 million
  4. iShares Core S&P 500 UCITS ETF (CSPX) traded 932 times, worth £207.1 million
  5. iShares S&P 500 UCITS ETF (DIST) (IDUS) traded 1,261 times, worth £205.6 million
  6. iShares S&P 500 UCITS ETF (DIST) (IUSA), traded 5,015 times, worth £190.4 million
  7. iShares J.P. Morgan $ EM BND UCITS ETF (IEMB) traded 1,841 times, worth £142.5 million
  8. iShares MSCI EM UCITS ETF (DIST) (IEEM) traded 2,134 times worth £121.6 million
  9. Vanguard S&P 500 UCITS ETF (VUSA) traded 825 times, worth £119.5 million
  10. iShares MSCI World UCITS ETF (DIST) (IDWR) traded 1,102 times, worth £108.7 million

Lida Eslami, product specialist in ETFs at the London Stock Exchange, said: “We’ve continued to grow our share of ETF trading in Europe; and as well as this record month for ETF trading in October in London, we have also seen strong listing activity, with 94 new ETFs/ETCs coming to market so far in 2014, with 25 listed in October alone.”

First introduced in the UK in 2000, there are now over 1,000 ETFs and exchange traded commodities listed on the London Stock Exchange.




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