Deutsche Brse claims that its XTF segment for exchange-traded funds (ETFs) commands 56 per cent of all European ETF turnover.
The total fund volume in the XTF segment reached a record 13.6 billion at the end of March, up 124 percent year-on-year. The segment’s turnover is also continuing to grow. In the first quarter, the XTF segment generated 9.9 billion in turnover, the second-best result in its history. The leading ETF in terms of turnover was the DAX EX, which generated an average monthly turnover of 1.66 billion.
Deutsche Borse says demand for fixed-income ETFs, which were introduced around a year ago, is growing at a particularly rapid rate. In March 2004, the total fund volume for the five listed fixed-income ETFs rose by 188 percent month-on-month to total 1.75 billion. The leading fixed-income ETF is currently the eb.rexx Government Germany 2.5-5.5 EX, an ETF that comprises German government bonds with medium maturities and includes assets of around 1.15 billion.
“The strong growth of the XTF segment is testimony to the attractiveness of these products for investors. Both private and institutional investors have recognized the advantages of ETFs,” says Rainer Riess, Head of Stock Market Business Development and thus responsible for the XTF segment. “ETFs provide both groups of investors with a cost-effective way of investing in a variety of different markets and sectors.”