EUROPE -- The aggregate volume of exchange-traded funds (ETFs) traded on European exchanges decreased 1.71% in December from the previous month to 220m shares, according to the Pan European ETF Report.

The volume was also 1.41% down on the 2004 average monthly volume of 223m shares. However, it was up 21% on the December 2003 total.

“Traditionally, volumes and turnover fall in December when compared to November, due to the reduced number of trading days and generally quieter atmosphere over the holiday period impacting on levels of trade,” said Paul Denley, a senior research analyst at Lipper which co-produces the report.

He said that turnover fell 1.28% in December to €5.26bn.

ETFs trading on the Deutsche Börse accounted for an average 45% of the overall volume in 2004, with the LSE accounting for 23% and Paris Euronext 13%.

The ishares FTSE100 maintained its dominance of the ETF volume leaderboard in Europe, trading almost 32m shares on the LSE in December.

The DAX maintained its dominance of the ETF turnover leaderboard in Europe, trading €1.03bn on the Deutsche Börse in December