Exchange Traded Funds (ETFs) have increased in popularity since their introduction on the London Stock Exchange last year, with a record 3,000 trades last month totalling £800m (€1.3bn), according to the LSE.

There are now 13 ETFs, traded on the LSE, covering a wide range of indices and sectors. In the US, ETFs account for approximately half of all trading on the American Stock Exchange. Worldwide, the ETF market has grown from $1bn (€1.1bn) at the end of 1995 to about $86bn at the end of June 2001.