Volatility Spurs Higher Volume in June

Monthly share volume hit its highest level in a year last month, according to a report by Credit Suisse.

At an average daily volume of 7.1 billion shares, June’s volume was the highest since June of 2012. Greater volatility was behind the burst of trading.

Much of the increase was due to trading in exchange-traded funds. The surge was “largely attributed to the increased focus on macro concerns and the related rise in volatility,” according to Credit Suisse analysts. “ETFs are particularly useful in such an environment because they allow investors to shift allocations or hedge a broad basket with a single product.”

Overall, ETFs accounted for 33 percent of all US dollar value traded in June. That was up from 22 percent for the first six months of the year and 28 percent in May.