07.01.25 11:59:24

ETFs: “A lot of business, especially buying”

Buying on buying - the first full trading week of 2025 is being used on the ETF market in a big way to enter the market. Particularly popular: major indices such as the MSCI World and S&P 500, but also tech ETFs, which are already in high demand in 2024. 


7 January, 2025 FRANKFURT (Frankfurt Stock Exchange). New year, old enthusiasm - at the start of 2025, buying far outweighs buying in ETF trading. However, things are only really getting going now. “The first few days of the new year were still somewhat subdued, and it wasn't until Friday afternoon, mainly in the US, that some buying mood emerged,” reports Holger Heinrich from Baader Bank. Overall, he reports twice as many purchases as sales. Andreas Schröer from Lang & Schwarz also reports a quiet start to the year. “But since yesterday we have seen a lot of business, and above all buying.”

The stock markets are providing a tailwind. The DAX stands at 20,270 points at midday on Tuesday - the record high of just under 20,523 points is not far away. The US markets are still below their highs after a weak start to the year, but tech stocks in particular have recently made significant gains again.

Equity ETFs: fighting prices of 0 percent

Global standard ETFs are particularly in demand, as the traders report. “It's mostly about large indices such as the MSCI World,” says Schröer. A dividend ETF, the Global X Superdividend (IE00077FRP95), is also in demand at the moment. Heinrich reports good demand for the iShares Core MSCI World (IE00B4L5Y983) and the Vanguard FTSE All-World (IE00BK5BQT80). Also in demand: the new ETF from Xtrackers and robo-advisor Scalable, the Scalable MSCI AC World Xtrackers (LU2903252349). This offers a total expense ratio of 0 percent - but only in the first year. As far as US equities are concerned, according to Heinrich, the broad indices, such as the S&P 500 (IE00B5BMR087), Nasdaq 100 (IE00B53SZB19) and MSCI USA (IE00BJ0KDR00), are also usually used.

Top countries in 2024: Pakistan and the USA

US equities were an extremely good choice in 2024: ETFs that track US equities gained 33%, according to figures from the ETF platform justETF. This puts the USA in second place on the list of best countries. Only Pakistan performed better with 77 percent. Equities from Singapore (33%), Taiwan (32%) and Malaysia (28%) also performed well. The “flop” countries are Brazil (down 26%), Mexico (down 33%), South Korea (down 17%), Indonesia (down 8%) and Vietnam (down 4%). 

Industries: AI euphoria without end

Artificial intelligence, big data, semiconductors - trading in sector ETFs continues to focus on the themes that already performed extremely well in 2024. At Baader Bank, ETFs such as Xtrackers Artificial Intelligence & Big Data (IE00BGV5VN51), iShares S&P 500 Information Technology (IE00B3WJKG14) and Amundi MSCI Semiconductors ESG Screened (LU1900066033) have been well received. According to Schröer, the focus is also on tech stocks. “The rise in Nvidia's share price yesterday probably contributed to this,” says the trader, also reporting high demand for the iShares product. 

ETFs that track the defense industry remain popular, especially VanEck Defense (IE000YYE6WK5). Although the ETF has weakened somewhat since November, the price has still more than doubled since its launch in April 2023. 

iShares Core MSCI World turnover top performer

At EUR 7.4 billion, the iShares Core MSCI World achieved by far the highest turnover of all ETPs, i.e. ETFs, ETCs and ETNs, in Xetra trading in 2024. The top ten also includes other iShares products, namely the Euro Stoxx 50, S&P 500, DAX and Stoxx Europe 600, as well as the iShares S&P 500 Information Technology, the only sector ETF. The Vanguard FTSE All-World is also on the list, in 8th place, as is the money market tracker Xtrackers II EUR Overnight Rate Swap in 4th place, the Bitcoin tracker Bitwise Physical Bitcoin in 6th place and Xetra-Gold in 9th place.

Crypto interest continues unabated

While trading in crypto ETNs is currently still quiet at Lang & Schwarz, Heinrich from Baader Bank sees demand remaining high. “Once again, the entire range from Bitcoin (GB00BLD4ZL17) and Ethereum (GB00BLD4ZM24) to Ripple (GB00BLD4ZN31) and Solana (GB00BNRRFY34) was bought,” reports the trader. Bitcoin has recently risen to over USD 100,000 again, and altcoins are also on the rise.

By Anna-Maria Borse, 7 January, 2025, © Deutsche Börse

Anna-Maria Borse is a financial and business editor specializing in the financial market/stock exchange and economic topics.

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