ETF Trading Volumes Increase Amid Market Volatility

Top Quote Exchange Traded Funds trading volumes significantly increase, despite recent market volatility, particularly in the U.S. End Quote
  • (1888PressRelease) August 15, 2011 - Sydney - BlackRock's exchange traded fund business, iShares, has experienced a significant increase in trading volumes for its exchange traded funds (ETFs) during recent market volatility.

    The Australian iShares business experienced a 300% increase in trading volumes last week for its broad market iShares MSCI Australia 200 (IOZ) and iShares S&P/ASX High Dividend (IHD), compared to their 20-day average trading volumes*.

    The iShares MSCI Australia 200 is designed to track Australia's 200 largest companies and the iShares S&P/ASX High Dividend provides exposure to Australia's top 50 companies with a particular focus on higher dividends.

    Mark Oliver, Managing Director of iShares in Australia said: "The recent rise in ETF trading volumes demonstrates once again that ETFs represent a 'go-to' liquidity source during times of market uncertainty. ETFs continue to act as a beacon for investors demanding transparency and diversification."

    Surges in ETF trading also occurred in the Asia Pacific region where the iShares CSI 300 A-Share Index ETF and iShares Barclays Capital Asia Local Currency Bond Index ETF experienced 3 to 4 times their 20-day average trading volumes*.

    In the northern hemisphere, the largest equity and fixed income iShares ETFs, by assets under management (AUM), have also been trading up to three times their 20-day average trading volumes.

    "Increases in ETF trading at times like these is testament to their structure and robustness. Investors clearly understand the benefit of being able to move in and out of positions effectively using ETFs," Mr Oliver said.

    "iShares places responsible product structuring, a multi-dealer model and liquidity at the heart of our value proposition, which is why we are the leading ETF provider globally," Mr Oliver said.

    BlackRock's recent half yearly ETF Landscape Industry Highlights report found that the global ETF industry had 2,825 ETFs and assets of US$1,442.7 billion, from 146 providers on 49 exchanges around the world at the end of H1 2011.

    This compares to 2,252 ETFs and assets of US$1,025.9 billion from 130 providers on 42 exchanges at the end of H1 2010.

    BlackRock expects global AUM in ETFs to increase by 20-30% annually over the next few years, taking the global ETF industry to approximately US$2 trillion by early 2012.

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