Barclays Stockbrokers clients increase investment in ETFs

Latest figures from Barclays Stockbrokers, the UK's largest online execution-only stockbroker, reveals client interest in Exchange Traded Funds (ETFs) has developed significantly over the last two years.  Since 2008, the combined value of ETFs held in client accounts has increased more than 330%.

Analysis also shows that the average client deal size has increased by 88% over the period, and the volume of assets invested on a monthly basis has increased by 60%. In addition, the number of client accounts holding ETFs has more than doubled, with each of these accounts holding two or more different ETF products.

Investors have increasingly diversified their portfolios through ETFs to access a greater range of asset classes. In 2008, fixed income ETFs accounted for half of the monthly top ten traded products, and the iShares FTSE 100 accounted for more than 34% of all purchases. The FTSE theme continues, as in September 2010, FTSE 100 related ETFs still attract a significant proportion of investments. This is spread across leveraged, short and standard products, demonstrating an increasing sophistication in investors' approach to the UK index. In addition, clients are also choosing a broader range of ETF investments. There has been more focus on Emerging Markets with investments such as the iShares MSCI Emerging Markets attracting investor interest.  Clients have also continued to use ETFs to access other major market indices, such as the iShares S&P 500 and income based products such as the iShares FTSE UK Dividend Plus.

Paul Inkster, Head of Product, Barclays Stockbrokers, comments: "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.

"The popularity of ETFs continues to build, and our figures suggest this growth shows little sign of abating - with the value of the ETFs held in client accounts having increased more than 330% since September 2008."