Funds: “Tech stocks have long been favorites again”

Tech stocks were already popular before the Trump victory, and even more so since then. Some tech funds have seen price gains of 23% this year. Gold and gold mining funds, on the other hand, are not as popular, nor are real estate funds.

28 November 2024 FRANKFURT (Frankfurt Stock Exchange). The tech euphoria is back and is also leaving its mark on fund trading. “Technology funds are in high demand,” reports Ivo Orlemann, who trades funds for ICF Bank.

The Nasdaq setbacks of August and September have long since been made up for. On Thursday morning, the Nasdaq 100 is at 20,741 points, not far from the all-time high of just under 21,225 points reached immediately after the Trump election. Fidelity Global Technology (LU0099574567, LU0346389348) has the highest turnover in this area at ICF, in both distributing and accumulating versions. The funds are now up 23 percent since the beginning of the year and 20 percent over the past five years. “Purchases clearly predominate.” Also popular: Franklin Technology (LU0260870158). According to Orlemann, there is also a lot going on with biotech funds, albeit with purchases and sales in equal measure, such as BGF World Healthscience (LU0171307068).

Equity funds without a clear trend

Matthias Präger from Baader Bank reports very high turnover in fund trading overall. “The volatility following Donald Trump's victory was not that high,” the trader notes. Both sides were played in broadly diversified equity funds. Präger reported inflows for SEB European Equities Small Caps (LU0099984899) and terrAssisi Aktien (DE0009847343), which invests according to strict Christian guidelines. In contrast, the CT European Smaller Companies (LU1864952335), Fidelity Germany (LU0048580004), DWS Akkumula (DE0008474024) and DWS Vermögensbildungsfonds (DE0008476524) were sold.

There is great caution regarding Asian equities. “We see practically no buying,” says Präger. The Fidelity Greater China (LU0048580855) and the Baring Hong Kong China (IE0004866889) are being sold. Various economic support measures by the Chinese government had caused a lot of movement on China's stock markets in October, but the MSCI China has moved sideways in recent weeks. 

Cashing in on gold funds - money market funds remain popular

Präger reports unusually high outflows for gold and gold mining funds - apparently profit-taking. Only recently has the picture changed towards buying and selling. The gold price had risen to a new high of almost USD 2,790 at the end of October, but then fell to USD 2,562. It is now back at 2,637 US dollars. The sell lists include HansaGold (DE000A0RHG75), which invests in gold securitizations, but also up to 30 per cent directly in physical gold. The BGF World Gold Fund (LU0326422689) with shares in gold producers is also being sold. In contrast, the DWS Invest Gold and Precious Metals Equities (LU0363470401), also a mining fund, will be added to the portfolios.

According to Präger, money market funds such as Franklin US Dollar Liquid Reserve (LU0052767562) and CB Geldmarkt Deutschland (LU0585535577) are still in demand. “Demand is high,” notes the trader.

Real estate funds: sales continue

As always, trading in real estate funds is very busy. “These are mostly sales, but they are also well received on the market,” reports ICF trader Orlemann. Grundbesitz Europa (DE0009807008), but also Grundbesitz Global (DE0009807057), HausInvest (DE0009807016) and Deka-ImmobilienEuropa (<DE000980956>) are particularly affected. WestInvest InterSelect (DE0009801423), on the other hand, is more likely to be bought.