Tradeweb Exchange-Traded Funds Update – October 2023
The following data is derived from trading activity on the Tradeweb Markets institutional European- and U.S.-listed ETF platforms.
EUROPEAN-LISTED ETFs
Total traded volume
Trading activity on the Tradeweb European ETF marketplace reached EUR 52.4 billion in October, while the proportion of transactions processed via Tradeweb’s Automated Intelligent Execution (AiEX) tool was 83%.
Adam Gould, head of equities at Tradeweb, said: “Institutional ETF volumes were up 21% year-over-year in Europe, and clients are continuing to see the value in using AiEX to execute their tickets. Market-on-close in competition continues to gain traction as a trading protocol with a record number of clients utilizing this offering. We have also seen an increase in trading activity across fixed income ETFs, which is interlinked with the growth of portfolio trading.”
Volume breakdown
In October, the only ETF asset class to see net buying was equities. Conversely, ‘buys’ in commodities and fixed income products lagged ‘sells’ by 10 and six percentage points, respectively. The proportion of trading activity in bond-based ETFs increased to 38% of the overall platform flow, compared to 33% in September.
North America Equities was once again the most heavily-traded ETF category, with EUR 9.5 billion in total notional volume, of which 60% was attributed to ‘buys’.
Top ten by traded notional volume
Fixed income products occupied the top three places for October. The iShares Core Corporate Bond UCITS ETF was ranked first for the first time since July 2023. September’s top placed fund, the iShares $ Corporate Bond UCITS ETF, fell two places to the third spot.
U.S.-LISTED ETFs
Total traded volume
Total consolidated U.S. ETF notional value traded in October amounted to a record USD 71.1 billion, beating the platform’s previous best performance in March 2023 by USD 3.8 billion.
Adam Gould, head of equities at Tradeweb, said: “Historically, October is a busy trading month and this year was no exception, with institutional notional volumes on our U.S. ETF platform rising 10% year-over-year. A wide range of money managers repositioned portfolios, expressed tactical views and optimized tax management strategies on the back of extremely volatile equity and rates markets.”
Volume breakdown
As a percentage of total notional value, equities accounted for 53% and fixed income for 41%, with the remainder comprising commodity and specialty ETFs.
Top ten by traded notional volume
Seven of the top ten ETFs by traded notional volume were fixed income-based. The SPDR Bloomberg 1-3 Month T-Bill ETF jumped one place up from September to take October’s top spot.
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