ETF volumes up more than 100%
While markets have been chaotic lately, the product segment ETF’s, in particular the BULL & BEAR instruments have exploded on Burgundy. As Sweden has a very active retail community, I believe there are two reasons why these products are very popular;
– Low cost and accessibility; all banks/online brokers now offer cheap rates to trade these super-liquid products. It beats struggling with complex derivative documentation, margining etc. These products are as easy to understand and are traded like ordinary stocks.
– Dramatic increase in correlation between individual stocks. As the large-caps move more and more in synch with each other, clients who need portfolio protection or just clean exposure can get in or out with a click. Many clients seem to shun away from stock picking in these turbulent times and go for market/beta exposure instead.
Burgundy is there to provide for the needs of the Nordic investor community and we are proud to have reached a sustainable level of market share in these products!