Tradeweb Exchange-Traded Funds Update - May 2023
Summary
- Trading activity on the Tradeweb European ETF marketplace reached EUR 44.8 billion in May, while the proportion of transactions processed via Tradeweb’s Automated Intelligent Execution (AiEX) tool was 81%.
- Fixed income and commodity-based ETFs saw net buying in May, with ‘buys’ surpassing ‘sells’ by 8 and 12 percentage points, respectively.
- Fixed income products dominated May’s top ten by traded notional volume, particularly those offering investment exposure to Treasurys.
Dragon Claws
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 44.8 billion in May, while the proportion of transactions processed via Tradeweb’s Automated Intelligent Execution (AiEX) tool was 81%.
Adam Gould, head of equities at Tradeweb, said: “A record 21% of the total platform flow was executed via AiEX last month, proof that European ETF traders increasingly use the solution to automate higher touch, larger size transactions.”
Volume breakdown
Fixed income and commodity-based ETFs saw net buying in May, with ‘buys’ surpassing ‘sells’ by 8 and 12 percentage points, respectively. In contrast, ‘buys’ in equity ETFs lagged ‘sells’ by two percentage points. Activity in all three asset classes mirrored both April’s and the previous 12-month rolling average.
North America Equities proved to be the most actively-traded ETF category during the month, with over EUR 9 billion in total traded volume.
Top ten by traded notional volume
Half of May’s ten most actively-traded products were bond-based, with the iShares $ Corporate Bond UCITS ETF moving up two places from April to be ranked first.
U.S.-Listed ETFs
Total traded volume
Total consolidated U.S. ETF notional value traded in May amounted to USD 53.4 billion.
Volume breakdown
As a percentage of total notional value, equities accounted for 47% and fixed income for 44%, with the remainder comprising commodity and specialty ETFs.
Top ten by traded notional volume
Fixed income products dominated May’s top ten by traded notional volume, particularly those offering investment exposure to Treasurys. In first place, the iShares Short Treasury Bond ETF last featured in the list in February 2023.
Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
This article was written by
