U.K. investors are increasingly trading fixed-income ETFs that follow the bond market.
“Investors do not have to construct a portfolio from individual bonds but instead can easily acquire a broad fixed income exposure or a position tailored to their specific needs via a single ETF trade,” Gillian Walmsley, head of ETFs at the London Stock Exchange, said in a Financial Times article.
For instance, across the pond, fixed income ETF trades on the London Stock Exchange have almost doubled over the first half of 2012, with bond ETF turnovers increasing 93% to $24.4 billion in the first six months from $12.6 billion in the same period last year.
Fixed income trades on the London exchange accounted for 121,516 trades in the first half, up 42% compared to the same period last year.
“The LSE has more market maker coverage for ETFs than any other exchange in Europe,” Walmsley added. “Both the LSE and the market makers who use the exchange are committed to providing continuous liquidity and working to improve trading spreads for clients.”