Barclays Stockbrokers records highest ETF trading volumes

Barclays Stockbrokers has recorded its busiest ETF trading week year to date, with trading volumes rising 23% week on week.

The broker says trading activity was dominated by the iShares FTSE 100, which experienced the highest volume of purchases and sales, with purchases rising 10% week on week.

The ETFS FTSE 100 Super Short followed in terms of purchases and sales, and experienced an increase of 76% in purchases week on week. The fund is designed to deliver the inverse of twice the daily percentage change in the level of the underlying index.

However, despite recent rallies, investors have expressed uncertainty over the future of the FTSE in a poll conducted by Barclays Stockbrokers. It shows nearly 39% of respondents say the market is too difficult to call at the moment.

Around 34% are bullish and believe recent market rallies represent recovery, while 27% are bearish and do not believe there will be a market correction.

Barclays Stockbrokers head of investments Barbara-Ann King says: "The highs and lows of the FTSE in recent months have clearly divided investors when it comes to their outlook for the market and the UK's economic recovery."

Nonetheless, she says investors are taking this as an opportunity to gain from volatility. She adds this is reflected in clients' trading of ETFs in recent weeks, with a close split in investors going long or short on the FTSE 100.

King says a fifth of all purchases last week were in emerging market ETFs, showing how investors are continuing to diversify into these regions in expectation of recovery.