Assets under management in exchange traded funds are steadily rising, according to two major prov...
Assets under management in exchange traded funds are steadily rising, according to two major providers.
Deutsche Bank's ETF provider, db x-trackers, says total European equity-related AUM rose 3.2% to €70bn (£62.5bn) from 2 February 2009 to 6 February 2009. Fixed income ETF AUM rose 6.3% to €33.3bn (£29.7bn) during the same period.
The provider says the largest ETF by AUM was the money market-based db x-trackers II EONIA TR Index ETF with AUM of €6.3bn (£5.6bn).
In terms of market share, Deutsche Bank says the Deutsche Borse XTF platform has the largest market share with 31.1% of total turnover. This compares with the Euronext NextTrack's platform's 25% market share. The LSE's combined Italian Exchange and London market share is now 22.6%.
Data from Lyxor Asset Management, Societe Generale's subsidiary, also reveals that the European ETF market has experienced significant growth in AUM for cash and bond products over 2008.
It says AUM in cash ETFs increased from around €2bn (£1.78bn) on 31 December 2007 to €8.6bn (£7.68bn) 12 months later.
Lyxor says the value of AUM in European-listed bond ETFs grew from €11.67bn (£10.4bn) in December 2007 to almost €19bn (£16.9bn) by December 2008.
According to the provider, Equity ETFs remained resilient in 2008, representing 66.47% of total AUM or €60.6bn (£54.1bn) at the end of December 2008. This is a decrease of 13% compared to December 2007, but in contrast the MSCI World Index dropped by 42.08% over the same period.
It adds that ETFs linked to strategy indices, including short and leveraged ETFs, saw the largest rise in the equity ETF sector with a growth of 117% in AUM since December 2007.
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