iShares ETF Volumes Soar Amid Volatility

iShares reported that trading volumes on Tuesday and Wednesday were more than three times the normal trading volume across Europe, as investors took employed real-time trading, efficient pricing, and cost efficiency of ETFs.

In 2007, the average daily trading volume across all iShares ETFs in Europe was USD820 million, but between Monday and Wednesday, volume reached USD2.46 billion per day. Volatility also brought new customers, as iShares reports net new assets of USD1,638 million between Tuesday and Wednesday.

The iShares with the most inflows include iShares DAX (DE), which brought in USD1,031 million in new assets, and products tracking the DJ Euro STOXX 50, which raked USD491.4 million in net inflows.

Andrea Morresi, head of sales for iShares Europe, said the volume could be attributed to investors seeking to buy after the market dropped, but Morresi added that “We also see investors looking to rapidly switch from riskier, concentrated positions in single equities to more diversified baskets of exposure, while remaining fully invested for every minute of the day...During this volatile period, iShares has also provided European investors with the tools to trade global equity exposures in real time, even as international markets have been closed.”