Tradeweb Exchange Traded Funds Update – February 2022

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The following data is derived from trading activity on Tradeweb Markets institutional ETF platforms listed in Europe and the United States.

ETFs listed in Europe

Total volume traded

February proved to be the third strongest month on record for Tradeweb’s European ETF market, with total trading volume reaching EUR 64.4 billion. Around 81% of trades were processed through Tradeweb’s Automated Intelligent Execution (AiEX) tool.

Adam Gould, head of equities at Tradeweb, said: “February was another turbulent month in global markets. While the impact of the omicron variant has waned, continued uncertainty around interest rate hikes and geopolitical tensions in Europe have created the backdrop for investor concern. In today’s fast-paced markets, we believe the ability for clients to quickly view multiple risky markets simultaneously, execute and move on, makes electronic bidding platforms an excellent choice. »

Distribution of volumes

Equity and commodity ETFs saw net buying in February, unlike their fixed-income counterparts. Fixed income trading activity increased to 32% of the platform’s overall flow, outperforming the previous 12-month moving average by two percentage points. North American equities were the most traded ETF category during the month, with European equities narrowly overtaking global equities to regain second place.2022February_ETFupdate_EUCharts.jpgTop 10 by notional volume traded

There were three ESG and SRI-focused products among the most traded ETFs in February. However, the iShares Core S&P 500 UCITS ETF retained the top spot for the seventh consecutive month.2022February_ETFupdate_EUTable.jpg

U.S.-listed ETFs

Total volume traded

The total consolidated notional value of US ETFs traded in February 2022 was $44.2 billion, the platform’s second-best performance since its launch in early 2016.

Distribution of volumes

As a percentage of total notional value, equities made up 45% and fixed income 51%, with the remainder comprised of commodity and specialty ETFs.2022February_ETFupdate_USCharts.jpgAdam Gould, head of equities at Tradeweb, said: “Liquidity provider prices continue to vary widely depending on where their books are at any given time of day. Although the reliance on one or two liquidity providers may make sense for some clients in slower markets, our clients have said that having access to a larger pool of liquidity on electronic bidding platforms like Tradeweb has been helpful in this environment, and they expect this trend to continue.”

Top 10 by notional volume traded

In February, 1,792 unique tickers traded on the Tradeweb US ETF platform. The month’s top 10 by notional volume traded consisted primarily of fixed income ETFs, with the iShares iBoxx $High Yield Corporate Bond ETF (HYG) ranking first for the third consecutive month.2022February_ETFupdate_USTable.jpgOriginal post

Editor’s note: The summary bullet points for this article were chosen by the Seeking Alpha editors.

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