LISTED PRODUCT NEWS
MAY RECORD ETF MONTH FOR BARCLAYS
As the stock markets plummeted in May, ETF trading volumes picked up sharply, according to figures from Barclays Stockbrokers. Monthly trading volumes were at their highest on record – up 44 per cent on the previous month and up 52 per cent on May 2009. Barclays Stockbrokers said that the number of clients actively trading also continued to rise, increasing 9 per cent compared with the previous month and 33 per cent on the year. Heightened volatility meant that FTSE 100 ETFs accounted for 39 per cent of all ETF purchases in May.
DB X-TRACKERS ISSUES SHORT BOND ETFS
Deutsche Bank’s ETF arm db x-trackers has this week launched two new daily short bond ETFs, which are London-listed. One tracks a daily short UK sovereign index while the other tracks a daily short US sovereign index. Institutional investors can use these products to hedge their portfolios against falling bond prices. The UK gilts ETF is denominated in sterling while the US Treasuries ETF is priced in dollars. Both products have an all-in fee of 0.25 per cent. Close to €1bn is already invested in Europe-based ETFs, which replicate an inverse performance of Euro sovereign bonds.
NEW LLOYDS RETAIL BOND AVAILABLE
Lloyds Banking Group yesterday issued its new retail bond and it will be available today for trading in the secondary market via platforms such as Bondscape. It pays interest at a fixed rate of 5.375 per cent a year for five years, with payments made every six months. The bond has been specifically designed with the retail investor in mind and is eligible for inclusion in both ISAs and Sipps. The minimum initial purchase is £1,000 with £100 thereafter. If you want your money back before the bond matures on 7 September 2015, then you can sell it on the open market.