Summer is typically a slow time in markets as volume trails off and traders flee their desks for vacation. However, ETFs’ share of overall equity volume has spiked in June with more investors using the financial products to manage risk and trade entire sections of the market.
For example, ETFs have accounted for more than 30% of overall dollar trading volume the past several sessions, according to Chris Hempstead, director of ETF execution services at WallachBeth Capital.
“No doubt about it the June volume trend is bucking upward. Another heavy day of trading and another stellar land grab for ETFs at 35%,” he said in a note Wednesday.
ETFs also accounted for 35% of overall volume on the first trading day of the month, June 3. ETFs traded over a $100 billion of volume during that session alone.
In an email Thursday afternoon, Hempstead noted ETF value volume was running at an elevated 39% for the day. “Volumes are popping in lots of ETFs,” he said.