FTSE 100 interest spurs Q4 asset growth

The amount of assets invested in ETFs grew by nearly one-third between the fourth quarter of 2008 and the final three months of last year, data from Barclays Stockbrokers reveals.

The stockbroking firm says there had been a 31% increase in assets invested in the final quarter of 2009, compared to the equivalent period in 2008.

Trading activity through Barclays Stockbrokers also increased in the fourth quarter of 2009, up 13% compared to the previous quarter and up 14% when compared with the equivalent period in 2008.

The firm says investors displayed their ongoing interest in the FTSE 100 in the fourth quarter of 2009. The iShares FTSE 100 ETF dominated trading through its platform, accounting for 16% of all purchases and 23% of all sales.

In addition the ETFS FTSE 100 Super Short fund entered the top ten buys and sales table for the first time, attracting approximately 5% of both purchases and sales.

Interest in emerging market ETFs also increased, accounting for 18% of purchases and 10% of sales, with a focus on Brazil and China through the iShares MSCI Brazil, iShares FTSE/Xinhua China 25 and iShares MSCI Emerging Markets.

Barclays Stockbrokers head of investments Barbara-Ann King says: "It is no surprise to see the FTSE 100 iShares continue to dominate ETF buys in Q4 2009; our clients have consistently seen value in the UK market and are clearly comfortable in making investment decisions in this area."

She adds it is interesting to see emerging markets ETFs growing in popularity. "As the emerging market story becomes increasingly mainstream, ETFs present an efficient low-cost way to gain exposure to what were previously difficult markets to access."