ETFs: Product diversity is exploited
Higher trading volume through buying and selling: In addition to the classics, specialities are also actively traded, such as strategies, themes and regions. In the case of bond ETFs, there is a shift from medium to long-term investors.
1 October 2024. FRANKFURT (Börse Frankfurt). The new all-time highs for many share indices are putting investors in a good mood on the stock markets, but are also increasing concerns that the rally may have gone too far. Holger Heinrich from Baader Bank is registering a slight selling overhang, at least for German equities, while buyers continue to outnumber investors overall. In addition to classic DAX ETFs (FR0010655712), various dividend ETFs are also on the sales list. The trader saw sell-offs in iShares STOXX Europe Select Dividend 30 (DE0002635299), Fidelity Europe Quality Income (IE00BYSX4176) and WisdomTree Europe SmallCap Dividend (IE00BQZJC527).
Brisk trading in German equities
Some investors also appear to be speculating on falling prices on the European equity markets or hedging against possible declines. Baader Bank bought, among others, the Amundi EURO STOXX 50 Daily (-1x) Inverse (FR0010424135), which tracks the performance of the Euro Stoxx 50 in the opposite direction. On behalf of ICF Bank, Ivo Orlemann also reported increased demand for the L&G DAX Daily 2x Short (IE00B4QNHZ41), which also includes leverage on the short side. In return, however, there were also purchases in classic DAX and MDAX ETFs (DE000ETFL011 and DE000ETFL441). Frank Mohr from Société Générale reported good buying in the iShares Core DAX (DE0005933931) and the otherwise less actively traded Deka DAX (DE000ETFL011). At Lang & Schwarz, the Amundi DivDax II (DE000ETF9033) is in demand, as Fabian Wörndl explains.
Mohr
Colorful mix of equity ETFs
What is striking in the current environment is the very mixed picture among the frequently traded ETFs. In addition to the standard indices (S&P 500, Nasdaq 100, MSCI World, etc.), investors are also looking for various “specialties”. At Baader Bank, orders include the BNP Paribas Easy ECPI Circular Economy Leaders (LU1953136527) and the iShares World Equity High Income (IE000KJPDY61). In contrast, the iShares Edge MSCI World Minimum Volatility (IE00BMCZLJ20) was sold. Mohr reports purchases in the iShares STOXX Europe 600 Oil & Gas (DE000A0H08M3) and sales in the iShares S&P 500 Energy Sector (IE00B42NKQ00).
At Lang & Schwarz, Wörndl is observing targeted demand for the iShares MSCI EM ex-China (IE00BMG6Z448), while the Xtrackers MSCI Japan ESG Screened (IE00BPVLQD13) is more likely to see sell-offs. ICF Bank's clients are playing the segment of potential beneficiaries of increased military conflicts through purchases in VanEck Uranium and Nuclear Technologies (IE000M7V94E1), Global X Uranium (IE000NDWFGA5) and VanEck Defense (IE000YYE6WK5).
Lots of movement in the bond segment
In the bond segment, Mohr is seeing a shift from medium-term to long-term maturities. While the Amundi Euro Government Bond 3-5Y (LU1650488494) is mostly sold, the Amundi Euro Government Bond 7-10Y (LU1287023185) is more frequently on the shopping lists. Overnight products from Xtrackers (LU0335044896 and LU0290358497) and Amundi (FR0010510800), which are often bought as a substitute for fixed-term deposits, are also in high demand.
According to Wörndl, cryptocurrencies are “a bit busier” again, although the top turnover in this segment is still a long way off. The VanEck Solana (DE000A3GSUD3) and the crypto ETNs from 21Shares on Bitcoin (CH0454664001) and Ethereum (CH0454664027) are particularly on the shopping list. ICF Bank's clients prefer to trade crypto ETCs with buy and sell limits. These have recently been achieved in particular in VanEck Bitcoin (DE000A28M8D0) and Global X Blockchain (IE000XAGSCY5), where corresponding turnover has been recorded.
From Thomas Koch, 1 October 2024, © Deutsche Börse AG
About the author
Thomas Koch is a CEFA investment analyst, investment specialist for structured products and a certified certificate consultant. He has been a freelance journalist covering events on the capital markets since the beginning of 2006.
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