Tradeweb’s April results show record breaking numbers

Adriano Pace, Tradeweb

In terms of European-listed ETFs, Tradeweb reports notional volume traded on the Tradeweb European ETF marketplace amounted to EUR39.2 billion in April, while the proportion of transactions completed via Tradeweb’s Automated Intelligent Execution (AiEX) tool rose to 73.8 per cent. 

The firm reports that all ETF asset classes saw net buying in April, with activity in fixed income ETFs increasing to 32 per cent of the entire platform flow, lagging the previous 12-month rolling average by just a percentage point.  

North America and Europe Equities proved to be the month’s most actively-traded categories, accounting for 40.5 per cent of the overall traded volume. 

Adriano Pace (pictured), head of equities (Europe) at Tradeweb, says: “The first four months of 2021 point to a potentially blockbuster year for the ETF industry, both in terms of trading activity and fund inflows. With the exception of Emerging Markets Equities and Energy Commodities, all ETF categories were mostly bought in April. The month also saw a record proportion of notional volume executed in European-listed ETFs via AiEX, as institutional investors continue to expand their use cases for the rules-based solution.” 

By traded notional volume there was an equal split between equity and fixed income products in April’s top 10, with the Invesco S&P 500 UCITS ETF ranked first. In fifth place, the iShares China CNY Bond UCITS ETF, which reflects the return of the Bloomberg Barclays China Treasury + Policy Bank Index, made its second ever appearance in the list. 

In the US, US-listed ETFs saw total consolidated US ETF notional value traded in April 2021 reach USD25.2 billion, just USD1.95 billion below the platform’s record performance in March 2020. 

As a percentage of total notional value, equities accounted for 47 per cent and fixed income for 48 per cent, with the remainder comprising commodity and specialty ETFs. 

Adam Gould, head of US equities at Tradeweb, says: “Clients continue to embrace ETFs as an important tool across a wider set of use cases. While we typically see an outsized portion of our trading volumes in fixed income ETFs, this was the first month in a while where we saw more trading in that asset class than in equities. This was largely driven by meaningful client positioning across the Treasury curve, with four of the five most actively traded funds benchmarked to Treasuries.” 

During the month, a record 1132 unique tickers traded on the Tradeweb US ETF platform, the firm writes. There were seven fixed income products among April’s 10 most heavily-treaded ETFs, five of which offer investor exposure to Treasuries. The iShares 20 Plus Year Treasury Bond ETF was ranked first. This was the fund’s third consecutive appearance in the top 10 list, the firm writes. 

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