Lyxor Asset Management (Lyxor), Société Générale’s wholly-owned subsidiary specialising in exchange-traded funds (ETFs), saw a 62% increase in the trading of its ETFs from July to August 2007. Its LYXOR ETF DJ Euro STOXX 50, which is Europe’s single largest ETF on an AUM basis, saw an increase of 105% during this period.
“ETFs offer one of the best ways for portfolio managers to maintain their current equity exposure while diversifying risk and increasing the overall liquidity of their portfolios,” according to Daniel Draper, head of Lyxor ETFs, UK, Ireland and Nordic region.
The company believes this is the main driver of the growth it saw last month.
“Regardless of the current market volatility, ETFs are becoming increasingly popular with both institutional and retail investors as the choice of funds grows dramatically and the many benefits of ETFs become more apparent,” adds Draper.