Surge in interest for ETFs at stockbroker Go compare with our comparison table

Surge in interest for ETFs at stockbroker

22 November 2010 / by Paul Dicken

The combined value of Exchange Traded Funds held by clients at Barclays Stockbrokers has increased by over 300 per cent in the last two years the company has said.

Barclays said on 22 November that the value of Exchange Traded Funds (ETFs) held in its execution-only stockbroker had increased by 330 per cent since September 2008, reflecting the developing interest in the funds.

The average deal size has gone up 88 per cent in this period, with the number of client accounts holding ETFs more than doubling.

Head of product at Barclays Stockbrokers, Paul Inkster, said: “Two years on from when we first identified the increasing appeal of ETFs for retail clients, the level of take-up and interest in these investment products has been exceptional.

“Our clients have consistently viewed 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.”

ETFs are listed individually on stock markets, such as the London Stock Exchange, and can allow access to a diverse range of asset classes. An ETF will aim to track a particular benchmark or index, such as the Euro Stoxx 50 Index.

The data from Barclays shows ETFs related to the FTSE100 remain popular, with clients also choosing a broader range of ETFs such as those related to emerging market indices.

ETFs have grown in popularity in recent years with new products on the market and various ways of accessing the funds, such as through a Self Invested Personal Pension (SIPP).

Commenting on demand for its European fixed income ETFs in August, iShares, the ETF provider of asset managers BlackRock, said global assets in fixed income ETFs were on course to surpass the $200billion mark by 2011, growth of over 200 per cent.

© Fair Investment Company Ltd

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