ETFs: "Focus on the USA and Globally"
The major indices continue to do well, especially the MSCI World and S&P 500. Many are now warning against too much concentration. After gold's all-time high, silver is now also being bet on.
27 August 2024. FRANKFURT (Börse Frankfurt). The buying mood continues. “We are mostly seeing buying, but it is quiet,” reports Andreas Schröer from Lang & Schwarz. Interest is mostly focused on the major indices, above all the MSCI World and S&P 500. Since yesterday, Monday, he has also seen increased buying in Hong Kong's tech stocks, such as the HSBC Hang Seng Tech (IE00BMWXKN31). Ivo Orlemann from ICF Bank also reports inflows into the MSCI World, S&P 500 and DAX. “The MDAX is also included for once.”
After significant gains in the previous week, the DAX is trending sideways this week. At midday on Tuesday, the index was at points not far off its all-time high of just under 18,893 points. The US markets also remained at a high level yesterday.
Defense sector convinces
In trading sector ETFs, the defense sector stands out, as Orlemann explains, specifically VanEck Defense (IE000YYE6WK5). The price has virtually only risen since the ETF was launched in April 2023, and the brief setback with the mini-crash at the beginning of August has already been more than made up for. High turnover in uranium ETFs such as VanEck Uranium and Nuclear Technologies (IE000M7V94E1) and HANetf Sprott Uranium Miners (IE0005YK6564) is also noticeable, as Schröer reports. “These are buys and sells.”
The VanEck ETF offers access to companies in the uranium mining and nuclear energy infrastructure sectors, while the HANetf offers access to companies involved in the exploration, mining and processing of uranium. The first has gained almost 15 percent since the beginning of the year, while the second is down 9 percent.
Orlemann
Global and American equities in particular
Global and North American equities are once again the clear favorites on the European ETF market this year, as figures from the ETF analysis and trading company Crossflow show. By the end of July, out of a net total of 87 billion euros in equity ETFs, 39.5 billion euros had been invested in global equities and 32.4 billion euros in North American equities. Equities from the eurozone only accounted for 3 billion euros and European countries outside the currency union for 4.9 billion euros. In terms of assets under management in equity ETFs (totaling EUR 1,348 billion), US equities are also far ahead with EUR 506 billion and global equities with EUR 488 billion.
“No risk diversification”
The analyst firm Morningstar recently looked at the topic of US equities and tech stocks and asked: “Do Europe's ETF investors own too much US tech?” The crash of the markets - including the US markets - at the beginning of August has startled European ETF investors, they say. “The US market accounts for more than 70 percent of global equity markets, the highest level in history,” explains Michael Field of Morningstar. The “Magnificent Seven” alone account for more than a fifth. The conclusion: the mix of global, US and technology equity ETFs does not guarantee risk diversification.
Silver investments after gold rally
Despite the recent all-time high, there is not much going on in gold ETC trading. “Silver ETCs (JE00B1VS3333) are being bought a lot,” reports Schröer. The price of silver has risen recently, but at USD 29.92 has not yet reached the highs from May. “Triple-leveraged commodity price trackers are also becoming increasingly popular,” he adds.
According to Orlemann, crypto ETN trading is rather quiet at the moment. On Xetra, the ETC Group Physical Bitcoin (DE000A27Z304), WisdomTree Physical Solana (GB00BNGJ9G01) and 21Shares Bitcoin Core (CH1199067674) are the most popular today. Bitcoin currently costs USD 62,853. Although the all-time high of over USD 73,000 from March is a long way off, the current price still represents an increase of 42% since the start of the year.
By Anna-Maria Borse, 27 August 2024, © Deutsche Börse AG
Über die Autorin
Anna-Maria Borse ist Finanz- und Wirtschaftsredakteurin mit den Schwerpunkten Finanzmarkt/Börse und volkswirtschaftliche Themen.
Feedback und Fragen an redaktion@deutsche-boerse.com.
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