ETFs: "A very good week"

Torben Bendt of Lang & Schwarz also reports rising interest in equities. Here, in addition to NASDAQ and MSCI World, the DAX is in demand.

The iShares NASDAQ-100 (DE000A0F5UF5), which is one of the largest NASDAQ-100 ETFs with a volume of 2.49 billion euros, is being bought. A "classic," the MSCI World, is being added to the portfolio with iShares' (IE00B6R52259) ETF. "Here, too, investors are predominantly buying," Bendt reports.

In addition to the usual appeal for the U.S. market, Mohr notes rising demand for European equities, manifested primarily in purchases of the Amundi MSCI Europe (LU1681042609) and iShares STOXX Europe 50 (DE0005933949). "We have - even though the U.S. market remains dominant - significantly more European equity indices in the top 10 than usual," Mohr summarizes. Europe accounts for 12 percent of total equity ETF volume, he said. "That's more than double what we've seen in recent weeks."

As for European equities, Berndt notes especially tightening buying in a double-leveraged DAX ETF (LU0252634307).

Following initial covid easing in China, interest in the region's equities is rising. "With the openings in China, investors are betting on a continuation here and speculating on rising quotes," explains Bendt. As a result, he says, buying interest in WisdomTree Emerging Markets 3x Daily Leveraged (IE00BYTYHN28<) has increased significantly.

ESG and climate ETFs remain hot sellers

ESG and climate ETFs are once again proving to be perennial favorites. At Heinrich, the UBS ETF (IE) MSCI USA ESG Universal Low Carbon Select (IE00BNC0M350), which has been on the market since July 2021, and the BNP Paribas Easy MSCI North America ESG Filtered Min (LU1291104575) were particularly in demand.

Baader clients are also buying European ETFs in these two categories, with BNP Paribas Easy MSCI Europe ESG Filtered Min (LU1291099718) and HSBC MSCI Europe Climate Paris Aligned (IE00BP2C0316) in particular demand. Its one-year performance is negative at 5 percent, but over the past three months the ETF has gained 6.2 percent. With the iShares MSCI Europe ESG Enhanced (IE00BHZPJ676), investors* rely on a product that has gained around 7.29 percent per year on average since its launch in spring 2019.

Although Societé Générale clients* tend to sell iShares Global Clean Energy (IE00B1XNHC34) as one of the sector heavyweights, they are also increasingly turning to climate and ESG ETFs, preferring to buy L&G Clean Energy (IE00BK5BCH80). Buying also dominates Societé Générale's order book for L&G Hydrogen Economy (IE00BMYDM794) and Deka MSCI USA Climate Change ESG (DE000ETFL573).

Oil and gas ETCs: Rising turnover

The oil market has reacted with price increases to the EU embargo and the oil price cap on Russian oil. The cartel Opec plus with Russia and Saudi Arabia had previously confirmed the production quota valid until the end of December and decided no further production cuts. In the meantime, the energy sector has moved back into the focus of investors.

In the case of the WisdomTree Energy ETC (GB00B15KYB02), Lang & Schwarz notes rather sales, but not so for gas ETCs: Bendt notes a lot of business with a triple-leveraged gas ETC from WisdomTree, the WisdomTree Natural Gas 3x Daily Leveraged (<IE00BLRPRG98>). "Here, the buys clearly outweigh the sells." Buys as well as sells he makes out in a triple-leveraged short product, the WisdomTree Natural Gas 3x Daily Short (<IE00B76BRD76>). "There's speculation back and forth here."

Mohr has also seen turnover in the energy sector. "This is currently the second strongest sector at 18 percent, and this is also where most buying is taking place." Invesco Morningstar US Energy Infrastructure MLP (IE00B94ZB998), in particular, is in demand, he said. Societé Générale's sector leader is the technology sector. However, index funds with technology stocks tend to be sold. Invesco Technology S&P US Select Sector (<IE00B3VSSL01>), in particular, is being sold off. On the sell side is also the iShares Automation & Robotics (IE00BYZK4552).

Entry levels used for real estate ETFs

On the other hand, buying interest in real estate ETFs, number three among the top-selling sectors, is particularly strong. "We've been seeing a lot more buying here for a few weeks now," Mohr explains, pointing specifically to purchases of iShares UK Property (<IE00B1TXLS18>) and iShares European Property Yield (IE00B0M63284) in light of lower entry levels. They are down 31 percent and 37 percent, respectively, for the year.

Crypto ETPs: calm after the storm.

After the insolvency of the crypto exchange FTX, it has become quieter on the market for crypto ETPs "Classics such as bitcoin are still in demand, however," is the situation at Lang & Schwarz. In view of the price losses of recent weeks, however, the Binance Coin is sold quite often. The 21Shares Binance BNB ETP (<CH0496454155) is accordingly high on the sell lists. The Binance crypto exchange's coin is down 20 percent for the month.

Bonds: Expectation of falling prices of German and European government bonds

In the bond tracker segment, the revival continues only in phases. Sales dominate this week. Wörndl has European government bonds of medium maturities on the sell lists (IE00B4WXJG34). At the same time, regional investments are made. For example, after recent sales, British gilts are now sought after, which manifests itself in purchases of the Vanguard U.K. Gilt UCITS ETF EUR Hedged Accumulating (IE00BMX0B524). Leveraged investors are buying but also selling ten-year U.S. government securities in the WisdomTree US Treasuries 10Y 3x Daily Short (IE00BKS8QT65).

According to Mohr's assessment, speculatively oriented investors are mainly expecting setbacks in the prices of German and European government bonds and are buying short products accordingly: Especially with the Lyxor Bund Future Daily (-1x) Inverse (<LU0530119774>) and the Xtrackers Eurozone Government Bond Short Daily Swap (LU0321463258). In addition, Mohr says he is buying U.K. government bonds of various maturities (<IE00B1FZSB30>) and European corporate debt (IE00B3F81R35). After a significant recovery in October and November, the price declines here amount to 24 and 12 percent, respectively, on an annual basis.

by Antje Erhard, 6 December 2022, © Deutsche Börse AG