Tradeweb: AiEX handles most ETF trades as May volumes hold

Tradeweb reported that institutional ETF trading remained strong in May. European-listed ETF trading on the Tradeweb platform reached €72.7 billion, with the firm’s Automated Intelligent Execution tool, AiEX, executing 95% of transactions and accounting for 35% of notional volume. Consolidated US ETF notional on the platform totaled $101.7 billion, and AiEX handled 61% of US ETF tickets.

In Europe, equity ETFs represented 73% of total flow in May, above the previous 12-month rolling average by five percentage points. Fixed income products made up 21% of activity and commodities 6%. Tradeweb recorded net buying across all three asset classes; in fixed income, sells trailed buys by 18 percentage points.

Global Equities was the most actively traded category in Europe for the month, narrowly ahead of North America Equities. Government Bond ETFs was the only fixed income category to appear in the top five. Equity products occupied the first six places in Europe’s top 10 list. The iShares Core S&P 500 UCITS ETF rose three places to lead the European rankings, followed by the iShares Core EURO STOXX 50 UCITS ETF. Short-duration fixed income ETFs from PIMCO and iShares saw notable activity, and the iShares Physical Gold ETC was the sole commodity product in the European top 10.

On the US platform, equities accounted for 61% of total notional value and fixed income for 32%, with the remainder in commodity and specialty ETFs. The Vanguard 500 Index Fund ETF was the most heavily traded US-listed ETF on Tradeweb in May, followed by the iShares Core S&P 500 ETF. Fixed income products made up half of the US top ten, covering corporate credit, Treasuries and broad-market bond exposures. The iShares Bitcoin Trust ETF was the only commodity-style product among the most traded US listings.

Adam Gould, Tradeweb’s Global Head of Equities, commented: “While overall European ETF trading volumes moderated from March and April’s elevated levels, institutional investors continued to be highly engaged in May. The continued adoption of our AiEX solution, which accounted for a record 35% of notional volume, highlights how clients are increasingly turning to automation to efficiently manage ETF trading workflows across a range of market conditions.” He added: “US ETF trading activity remained robust in May, surpassing $100 billion in notional volume, the platform’s third-best performance on record. Automation continued to play an important role in client workflows, with AiEX responsible for more than 60% of tickets as investors increasingly leverage electronic trading tools to scale execution and access liquidity in ETF markets.”