ETFs: "All-Time New Highs"

Focus on Technology

In trading with sector ETFs, tech trackers such as Xtrackers Artificial Intelligence & Big Data (IE00BGV5VN51) are particularly popular. “Technology is clearly in the lead again,” reports Mohr. At ICF, the Invesco CoinShares Global Blockchain (IE00BGBN6P67) is also still in demand. It is benefiting greatly from the crypto boom and has seen its price rise by 45% this year. 

The current trends in the bond ETF market are also familiar: Money market ETFs in particular are showing high turnover, as Mohr reports. Examples include the Lyxor Smart Overnight Return (LU1190417599), the Xtrackers II EUR Overnight Rate Swap (LU0290358497) and the iShares EUR Ultrashort Bond (IE000RHYOR04), with purchases and sales. 

Cryptos: “Second and third tier also in demand”

When it comes to crypto ETNs, it is no longer just Bitcoin and Ethereum trackers that are attracting attention. “The second and third tiers are now also attracting a lot of attention and are usually bought, such as Chainlink (CH1100083471),” reports Schröer. Orlemann reports high turnover in Bitcoin and Ethereum trackers as well as good business in Cardano and Solana ETNs. “Ripple has become somewhat quieter.” 

Trends 2024: US equities are the Favorite

Even if the year is not over yet: 2024 will be another record year for ETFs - that is already clear. “In the first ten months, net inflows into ETFs based in Europe have already broken the previous annual record set in 2021,” reports analysts Morningstar. 2024 was also dominated by US equities. From the beginning of the year (until the end of November), a total of EUR 158.5 billion has flowed into equity ETFs on the European ETF market, as the analysis and trading company Crossflow reports. The clear favorites were US equities and the global indices, which are heavily weighted towards US equities, with around EUR 70 billion each. ETFs that track shares from the eurozone or Europe as a whole only accounted for around 10 billion euros, while the Asia-Pacific region accounted for 5.5 billion euros. A net amount of 51 billion euros has flowed into bond ETFs since the beginning of the year, primarily into products that track European (10 billion euros) and US government bonds (8 billion euros) as well as European money market ETFs (8.8 billion euros).  

• Find out more in the PDF at crossflow.de 

“We saw a sharp rise in ETF savings plans in 2024,” reports Andreas Schröer from Lang & Schwarz, looking at the year as a whole. Also noticeable: the enormous interest in technology ETFs and crypto ETNs. Asia was also a major topic at times, especially India and China. With regard to Chinese equities, he reports “a lot of ups and downs”. “The market is already very volatile,” he notes. In addition to crypto ETNs, Orlemann also mentions gold and silver ETCs, which have been in high demand this year. “In the sector ETFs, we have also seen a lot of buying of defense ETFs (IE000YYE6WK5) again and again, the war is making itself felt,” adds Orlemann.

Only Pakistan's equities outperform the US equity market

With a price increase of 35.5%, US equities are among the top performers in terms of returns in 2024, as the figures from the ETF platform justETF (as at December 16) show. Only Pakistan's shares fared even better, gaining 77%. In third to fifth place are Singapore (34%), Taiwan (31%) and Turkey (30%). The number one “flop country” is Brazil with a drop of 22%. Mexico's and South Korea's shares have also clearly lost ground at 18% and 14% respectively, as have Indonesia's and Vietnam's at 6% and 3%. 

• Find out more at justetf.com

By Anna-Maria Borse, 17 December, 2024, © Deutsche Börse