This month, the London Stock Exchange (LSE) commemorates a landmark anniversary: 25 years since the debut of the UK’s first Exchange Traded Fund (ETF). Since the listing of the iShares Core FTSE 100 UCITS ETF in April 2000, ETFs have revolutionized investment strategies, democratizing access to diversified markets while driving unprecedented financial innovation. Today, the LSE hosts over 2,350 Exchange Traded Products (ETPs) with combined assets under management (AUM) exceeding £1 trillion—a testament to the sector’s explosive growth and enduring appeal.
At the heart of this transformation lies the LSE’s unwavering commitment to its four pillars: innovation, partnership, integrity, and excellence. As the ETF market evolves, the Exchange continues to empower investors with transparent, flexible, and cost-effective solutions tailored to a rapidly changing world.
The Dawn of a New Investment Era
When the first ETF debuted in 2000, it offered investors a groundbreaking proposition: diversified exposure to the FTSE 100 with the liquidity of a stock. Over the next two decades, this simplicity became a catalyst for change. By 2024, the LSE’s ETP market had grown to include 2,350 products, with 270 new launches in a single year alone. This growth reflects shifting investor priorities—from passive indexing to sophisticated strategies encompassing ESG integration, smart beta, active management, and even crypto-linked instruments.
“For 25 years, ETFs have been a catalyst for investors across Europe to access markets. Innovation in ETFs has redefined wealth management propositions, redefined how bonds are traded and how institutions allocate at scale – all whilst providing convenience, choice and trading efficiency” stated Jane Sloan, EMEA Head of iShares and Global Product Solutions, BlackRock.
ETP trading now makes up 20% of the LSE daily turnover, with trading spread across 19 market makers, who have been pivotal in supporting this growth. In 2024 alone the Exchange saw the average daily volume traded for ETPs increase 30% year on year. Advances in technology, particularly the rise of ETF algorithms for trading, could lead to the creation of even more sophisticated ETF products and trading strategies. In April 2025, the LSE also recorded its highest trading day in ETPs, with £2.6bn traded on the LSE order book.
Innovation and Expansion: Shaping the Future of Finance
The ETF industry’s evolution mirrors the broader financial landscape’s embrace of technology and sustainability. On the LSE, ETP issuers have pushed boundaries, introducing products that address climate risk, leverage artificial intelligence, and even tokenize assets. A standout moment came in May 2024, when the LSE enabled professional investors to access cryptocurrency ETNs for the first time—a nod to the growing demand for digital asset exposure.
Looking ahead, the LSE reaffirms its dedication to fostering transparent, resilient markets. By prioritizing fair pricing, risk management, and global capital flows, the Exchange aims to sustain its role as a linchpin of financial stability—and a launchpad for the next generation of investment solutions.
As the ETF market embarks on its next 25 years, one truth endures: innovation never stands still.
