ETFs: Small cap and factor ETFs in demand

With the continued good mood on the markets, more special things are coming into focus, such as small cap or momentum and value ETFs. The Bitcoin rise is also not without consequences - even if there was a setback recently.
 

25 April 2023. FRANKFURT (Börse Frankfurt). The reporting season, which has been going well so far, is supporting the stock markets, and ETFs are still in demand. "With a slight increase in sales, we had around 70 percent more purchases than sales," reports Holger Heinrich from Baader Bank. Torben Bendt from Lang & Schwarz also reports a clear purchase overhang. The DAX stood at 15,856 points on Tuesday morning, up 12.5 percent since the beginning of the year. The S&P 500 closed at 4,137 points yesterday, up 8.2 percent for the year.

"Again, mainly European ETFs are being traded," notes Heinrich. On the one hand, there are classic ETFs on the Euro Stoxx 50, the Stoxx Europe 50 and the MSCI Europe, also in ESG variants. However, small cap and growth ETFs such as the iShares MSCI EMU Small Cap (IE00B3VWMM18) and the Deka Stoxx Europe Strong Growth 20 (DE000ETFL037) also had strong turnover.

Momentum: Will the first be the first?

According to Heinrich, momentum and value ETFs are currently in demand for trackers of global equities, specifically the iShares MSCI World Momentum Factor ESG (IE000L5NW549), the Xtrackers MSCI World Momentum (IE00BL25JP72) and the iShares Edge MSCI World Value Factor ( IE00BP3QZB59). The idea behind momentum ETFs: Stocks that have outperformed over the past three to six months tend to continue to do so -- at least during an uptrend in the market. Value ETFs, meanwhile, track stocks that are currently undervalued, such as by price-to-earnings ratios.

As far as US stocks are concerned, Baader Bank customers like to rely on large indices such as the MSCI USA (IE00BK1PV445) and the Nasdaq 100 (DE000A0F5UF5), also with an ESG filter (IE00BHZPJ908).

Gold price surge lures into gold ETCs

In the area of commodity and precious metal securitisations, a lot is currently going on in Xetra-Gold (DE000A0S9GB0), as Bendt adds. "It's very much in demand at the moment." The price of gold rose to $2,048 in mid-April and is currently back at $1,988.

Also strong: Gas ETCs, namely leveraged products from WisdomTree, short and long (<IE00B76BRD76>, JE00BDD9Q956). The price of gas has recently fallen further. The futures contract for Dutch natural gas (Dutch TTF), which is relevant for Europe, slipped below 40 euros/MWh, after the outbreak of the Ukraine war it was now over 300 euros/MWh.

Wanted for parking: money market ETFs

In addition, money market ETFs remain in demand. Lang & Schwarz has received a lot of encouragement for the Xtrackers II EUR Overnight Rate Swap (LU0290358497). The iShares eb.rexx Government Germany 0-1yr (DE000A0Q4RZ9) is currently also being traded a lot on the Frankfurt Stock Exchange.