ETFs and ETPs saw an increase of 25 per cent in on-exchange trading activity in 2011 according to data released by Lyxor ETFs, Societe Generale’s wholly owned exchange traded fund subsidiary.

In what was a difficult year in markets as a whole, swap-based ETFs accounted for 54% of turnover over 2011, while physical ETFs were 38% of the market.
 
Monthly on exchange activity totalled around EUR55.5bn. Due to the fact that many trades are still done OTC, Lyxor estimates that total monthly market activity is over EUR100bn

Equities dominate ETF trading exposures – close to 58% of the total, while ETF and ETP trading accounts for around 11% of equity market activity. Total on exchange turnover for Lyxor ETFs was EUR153bn, while market share was down but still clear No2 at 23.1%
 
Average daily turnover has increased from EUR2.1bn in 2010 to EUR2.6bn in 2011.

Turnover in equity related products increased by 27.9% in 2011 although as a percentage this has fallen from a high of 90% of total turnover in 2006.

Average monthly turnover for equity related products increased by 1.62% on that seen in 2010 to 58.26% of total turnover.

Average monthly turnover in the commodity area increased by 1.82% from 12.57% of total turnover to 14.39%.

Commodity turnover increased by 45% with the focus on precious metals. Commodity turnover has risen from just 4.5% of total turnover at the beginning of 2006 to now account for over 14% of total turnover.

Overall the use of ETFs and other ETPs shows a greater diversification across asset classes.