ETFs: Looking across the Atlantic

“The most noticeable trend is the purchase of various S&P 500 ETFs,” reports Heinrich (LU1681049109, LU2009147757). Leveraged S&P 500 ETFs are also in demand, such as the WisdomTree S&P 500 5x Daily Leveraged (XS2771643025). At ICF Bank, there is still a lot going on in classic MSCI World trackers such as the Deka MSCI World (DE000ETFL508) - sometimes buying, sometimes selling. “When it goes up, we buy, when it goes down, we sell,” reports ICF trader Frank Wöllnitz. At Baader Bank, we mostly buy classic MSCI World ETFs, with and without ESG reference. “World ETFs are not so popular at the moment,” says Heinrich.

According to Heinrich, Stoxx Europe 600 ETFs are also well received, such as the BNP Paribas Easy Stoxx Europe (FR0011550193) and the Amundi Stoxx Europe 600 ESG (DE000ETF9603). At currently 516 points, the Stoxx Europe 600 is still slightly below the record of just under 527 points. “In terms of country-specific ETFs, the focus this time is on Germany (FR0010655712) and Switzerland (LU1681044993),” explains Heinrich.

Asia: no longer just Indian equities in demand

Indian equities are still in demand, as Andreas Schröer from Lang & Schwarz notes. “What is new is the increased interest in China and Asia in general,” explains the trader. The reason: China's central bank has announced far-reaching economic measures due to the weakening economy, driving China's stock markets up today.

Tech ETFs make a comeback

Tech trackers are becoming more popular again in trading with sector ETFs, as traders report. According to Schröer, the Amundi MSCI Semiconductors ESG Screened (LU1900066033) and the Xtrackers MSCI World Information Technology (IE00BM67HT60) are doing well. Popular with the ICF: VanEck Semiconductor (IE00BMC38736). All three have recently recorded price gains. However, the old highs have not yet been reached again.

Defense stocks: In demand yes, sustainable no?

Wöllnitz also reports good turnover for ETFs that track the defense industry, such as VanEck Defense (IE000YYE6WK5). “But it is now going both ways, it is no longer just buying,” the trader notes.

“Do defense stocks belong in sustainable funds?” - This question was addressed by the investment magazine “Das Investment”. After all, the war in Ukraine has cast the arms industry in a new light for many. The magazine therefore asked various asset managers whether armaments are compatible with ESG. The answers range from “We exclude manufacturers of outlawed weapons” (Swisscanto) to “Weapons are necessary, but not sustainable” (Union Invest). 

Out of gold, into Bitcoin

New all-time highs in the price of gold are causing profit-taking in trading with gold ETCs. “We are seeing a lot of selling of precious metal ETCs,” reports Wöllnitz. The WisdomTree Physical Swiss Gold (JE00B588CD74) and the WisdomTree Physical Silver (JE00B1VS3333), but also the WisdomTree Physical Platinum (JE00B1VS2W53), are affected. Bitcoin ETNs, on the other hand, were bought again, mostly VanEck Bitcoin (DE000A28M8D0). Bitcoin has also risen recently and is currently back at USD 63,365.