ETF funds grew in popularity during the last three months of 2009, due to their simplicity, low cost and transparency.

ETF funds grew in popularity during the last three months of 2009, due to their simplicity, low cost and transparency.

Barclays Stockbrokers claimed that trading through it for ETF funds was up 13 per cent in quarter four and 14 per cent year-on-year.

Barbara-Ann King, head of investments at the firm, added that investors see these instruments as a good way to gain access to a number of underlying asset classes.

She said: "It is interesting to see emerging markets' ETFs growing in popularity. As the emerging market story becomes increasingly mainstream, ETFs present an efficient low-cost way to gain exposure to what were previously difficult markets to access."

Ms King added that global ETF fund assets exceeded $1 trillion (£615 billion) last year with a one third year-on-year rise in Q4.

BlackRock managing director Deborah Fuhr recently claimed that the highest ETC fund inflows have been in technology, while basic resources have been the most popular in the year-to-date.