Deutsche Borse says it turned over Euros 4.8 billion in exchange-traded funds in March this year, the highest monthly figure since the XTF segment was launched. It topped the January record of Euros 2.9 billion by 60 per cent, and is up 70 percent on February. The German exchange says it is now clear market leader in exchange-traded index funds in Europe, with 58 per cent of the market.
“Deutsche Brse’s XTF segment has established its position as a permanent feature of the German capital market two years since the segment was launched; at the same time, it is also the most important market for exchange-traded index funds in Europe,” says Volker Potthoff, the Deutsche Brse Executive Board member responsible for the cash market. Turnover in the XTF segment on the Frankfurt Stock Exchange is second only to turnover in the DAX, the German blue chip index.
The index fund on the DAX (DAX EX) was again the highest-volume index fund in the XTF segment in March, with an increase of about 26 percent in turnover to a total of some Euros 2 billion. Ranking second in volume is the index fund on the Euro STOXX 50 (Dow Jones Euro STOXX 50 EX). This fund set a new record with turnover of Euros 1.76 billion euros, almost 200 per cent higher than the previous month’s figure (February: Euros 603 million). These two funds make up 46 per cent of the European market in exchange-traded funds. Trading in the actively managed funds was also favorable, rising 24 percent from Euros 56 million to Euros 70 million.
On April 11, 2000, Deutsche Brse became the first European exchange to introduce its own segment for trading in exchange-traded index funds. The segment started out with two index funds on the STOXX 50 and Euro STOXX 50; in the meantime, there are 43 index funds and 13 actively managed funds in the XTF segment. In spite of the current overall market conditions, the index funds listed in XTF have generated some 4 billion euros in assets under management.