Barclays Stockbrokers Clients Capitalise on FTSE 100 Movements Through ETFs

17 July 2012

  • 40% of ETF trades in May and June 2012 were FTSE 100-related
  • iShares FTSE 100 accounted for 14% of all May and June trades
  • 159% increase in client accounts holding ETFs since 2008

Clients of Barclays Stockbrokers are using ETFs to capitalise on FTSE 100 movements, according to new analysis. The UK’s largest execution-only retail broker reveals that across May and June 2012, investments made in FTSE-related ETFs accounted for 40% of total ETF trades for each month.

Across May and June, clients capitalised on the full range of FTSE ETFs available; the iShares FTSE 100 ETF represented 14% of all trades in May 2012, while the ETFX Super Short and ETFX Leveraged x2 ETFs, when combined, accounted for 26% of trades in the same month. This trend continued into July, and week commencing 2nd July saw that for the first time this year seven out of the top ten ETFs were all FTSE related.*

Client appetite for ETFs as an investment tool has increased over time; Barclays Stockbrokers analysis also found that since September 2008, the number of client accounts holding ETFs has increased by 159%, and by 71.5% comparing May 2012 to May 2009. In the same period, the value of ETF assets held by Barclays Stockbrokers clients has nearly trebled (+188%). Analysis also found the average client trade size has increased by 24% between April 2012 and April 2010.

Paul Inkster, Head of Product, Barclays Stockbrokers, comments: “In May we saw significant volatility in the FTSE, so it is no surprise our clients have been making the most of investment opportunities through a range of FTSE ETFs.

“Barclays Stockbrokers investors have consistently used ETFs as effective and accessible investment vehicles and are increasingly using them to capture short-term market movements, as well as in longer term portfolio construction.”

*Barclays Stockbrokers Top 10 ETFs chosen by clients (as at 9th July 2012)

BUYS

% Buys

ETFX FTSE 100 SUPER SHORT STRATEGY (2X)

15%

iShares FTSE 100 Nav

6%

ETFX FTSE 100 Leveraged (2x)

5%

iShares FTSE UK Dividend Plus

3%

iShares FTSE All Stocks Gilt Gbp

3%

iShares FTSE Mib

2%

iShares FTSE 250

2%

iShares Dj Euro STOXX 50 Nav

2%

iShares S&P Commodity ProduCerS gold

2%

Db X-TrackersS&P 500 Short Etf

2%


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