Investors opt for ETFs to provide transparency and liquidity

Investors are increasingly turning to exchange-traded funds (ETFs) over other investment vehicles such as structured products, swaps and certificates, amid concerns surrounding counterparty risk, transparency and liquidity, according to the latest Barclays Global Investors' (BGI) industry review. Investors are showing a preference for ETFs with a fund structure, especially those which invest exclusively in securities. In the first nine months of 2008, net sales of ETFs in Europe amounted to US$54.1 billion, while European domiciled mutual funds net sales were minus $302 billion, based on data by Lipper/Feri.

The review notes that ETFs with exposure to fixed income and commodity indexes have gained assets, while assets in ETFs based on equity indexes have declined through 2008. ETF trading on the Six Swiss Exchange, SWX Europe and Scoach Switzerland peaked in November with a turnover of SFr7.6 billion, marking an increase of around 95% compared with October trading. Nonetheless, the review notes that October experienced the largest number of ETF managers closing their ETFs, with Santander, Bear

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here