The trading activity in the XTF segment, measured in terms of the number of transactions, also increased substantially in the first half of the year. During the period from January to June 2003, some 330,000 transactions were executed in the XTF segment. This means that the number of transactions increased by 75 percent, year on year (January - June 2002: 189,000 transactions). Moreover, the number of ETFs in the XTF segment also grew further: During the first half of 2003, nine ETFs and one actively managed fund were launched, including the first fixed-income-ETFs in Europe. At present, 68 ETFs and 23 actively managed funds are listed in the XTF segment.
More than half of all ETF turnover in Europe is generated in the XTF segment. Only since the beginning of this year, the XTF segment has expanded its share of the European market from 45 percent to 56 percent. In June, 2.93 billion euros in turnover was traded in the XTF segment, bringing the total volume traded in the XTF segment during the first six months of 2003 to 18.3 billion euros.
Exchange-traded funds are index funds that that can be traded continuously like equities on the stock exchange at the current market price.There are no loads for the purchase of fund shares through the stock exchange; all the investor has to pay are the usual transaction costs for the purchase and sale of securities. Investors can buy the shares through any bank that offers trading in equities.
Roughly 99 percent of the turnover in fund products in Germany is posted through Xetra, which means that all of the main trading parameters from equities trading are also valid for XTF.These include continuous trading, auctions, a minimum lot of one fund share as well as Designated Sponsors who provide for liquidity.
