Broad Industry
In April, ETF volumes surged to an average daily volume (ADV) of approximately $290 billion, marking a $100 billion increase per day over the first quarter. Following tariff announcements, daily ETF volumes exceeded $400 billion for five consecutive days, with a record $640 billion traded on April 7. ETF trading as a percentage of equity trading soared above its 15-year average of 28% for nearly four weeks, peaking at 43% on April 7, the highest since 2018 and the third highest ever.
During this period of heightened volatility, ETF trading volumes peaked at approximately 3x their normal levels. ETF spreads across the industry doubled immediately after the tariff announcements and remained 50% higher two weeks later. Heavily traded products showed more resilience than those with lower ADV.
Equities
Equity ETFs made up nearly 80% of trading volume, maintaining their 1Q proportion but with a $50 billion daily increase in notional volume. From April 3 to 17, they traded $130 billion more daily than in 1Q. Leveraged/inverse products, single country/region ETFs and sectors like commodities, cyclicals and defensives saw volumes 80-125% above normal amid volatility. Derivative income and options strategies were heavily utilized by investors, trading over $2 billion daily and boosting active equity ETF inflows during this period.
Spreads doubled initially and were 81% higher than 1Q in the two weeks post-tariff announcements, with single country/region, foreign blend and emerging markets seeing the largest increases. International equity products affected by tariffs or closed markets during U.S. hours experienced the largest premium discount moves, with foreign large blend, diversified emerging markets and single country strategies observing premium discount ranges 2-4 times wider than usual.
Fixed Income ETFs
Fixed income ETF volumes rose 60% from 1Q, despite comprising only 15% of trading activity. Their ADV jumped from $27 billion in 1Q to $55 billion between April 3 and 17. Bank loans, high yield bonds, municipal bonds, long government and ultrashort strategies saw significant activity, averaging $35 billion daily combined, a $20 billion increase over 1Q ADV.
From April 3 to 17, spreads widened by 122% compared to 1Q. Bank loan ETFs surged 356%, and inflation-protected bond ETFs rose 367%. Bank loans, emerging market bonds, high yield and inflation-protected strategies moved significantly into discount territory, with premium and discount ranges expanding 2-4 times compared to 1Q.
JPMorgan ETFs
JPMorgan ETF volumes exceeded a $2 billion ADV, with a record $6 billion traded on April 7. This included flagship products like JPST, JEPI and JEPQ, which were among the most traded and resilient active ETFs. JPST led active fixed income ETFs with $11 billion in April volume, accounting for 12% of all active fixed income ETF trading. JEPI and JEPQ together averaged over $835 million daily, making up more than 44% of the derivative income and options trading category and 14% of all non-leveraged inverse active equity ETF volumes.
During peak volatility, spreads for these three products widened by less than a basis point. JPMorgan's active equity ETF spreads were below 50% of the industry average, and their active fixed income lineup traded at 25% of the category average. Premium/discount movements were consistent with industry trends, notably in international equity, emerging market bonds and high yield products.