ETFs: Lethargic end to the summer
New all-time highs for the DAX, Dow Jones and even gold are not boosting business. At the beginning of the traditionally difficult stock market month of September, a wait-and-see approach is the order of the day.
3 September. FRANKFURT (Börse Frankfurt). At the beginning of August, the summer break was canceled due to the severe market turbulence, and the beginning of September is here. “It's very quiet,” explains Ivo Orlemann, who trades ETFs for ICF Bank. Andreas Schröer from Lang & Schwarz also reports low turnover. The DAX reached a new all-time high of just under 18,991 points on Friday and 18,850 points on Tuesday lunchtime. The Stoxx Europe and the Dow Jones also set new records.
At ICF Bank, most of the focus is on large equity indices, as Orlemann notes, such as the Deka DAX (DE000ETFL011), the Deka MSCI World (DE000ETFL508) and the Deka Euro Stoxx ex Financials Dividend+ (DE000ETFL482). The latter excludes financial institutions and focuses on companies with the highest dividend yields in the eurozone. Also popular: the WisdomTree DAX 3x Daily Short (IE00B8GKPP93), which tracks the DAX in reverse and with leverage of three.
FTSI India up 20 percent
Schröer sees many purchases of MSCI World ETFs, but also of Indian equities, mostly with the Franklin FTSE India (IE00BHZRQZ17). MSCI EM Asia trackers were also very well received, while the more broadly diversified MSCI Emerging Markets ETFs were less popular. The price of the Franklin FTSE India has risen by 20 percent since the beginning of the year and is up almost 13 percent over the past three years.
Defense ETFs: rapid price gains
According to Orlemann, hydrogen ETFs such as the L&G Hydrogen Economy (IE00BMYDM794) are always in demand when trading sector ETFs. Meanwhile, the popular VanEck Defense (IE000YYE6WK5) continues to climb to new all-time highs, with a price increase of 35% this year alone. “In the face of ongoing global uncertainty, the issue of security and defense has once again become one of the most important concerns of national governments,” explains issuer VanEck. Launched in March 2023, the ETF, now worth over USD 1 billion, invests in leading defense technology companies, major cybersecurity firms and defense-related service providers. The current focus is on Palantir Technologies, Leidos and Booz Allen Hamilton.
Another ETF from the sector is the Future of Defense (IE000OJ5TQP4) from HANetf. Launched in June 2023, the USD 475 million ETF offers access to 41 companies from the defense sector. The focus is currently on BAE Systems, Fortinet and Northrop Grumman. Since the beginning of the year, it has gained 26 percent.
Is silver following the gold price?
In commodity ETC trading, Orlemann reports turnover in gold and silver ETCs at a low level. There was some turnover in Invesco Physical Gold (IE00B579F325), WisdomTree Physical Silver (JE00B1VS3333) and WisdomTree Silver 3x Daily Leveraged (IE00B7XD2195). The price of gold climbed to a new all-time high of USD 2,531 last week and was back at USD 2,504 on Tuesday afternoon. The silver price had followed suit in the meantime, but remained below the May highs.
Crypto ETNs: “Lower price not used for entry”
Trading in crypto ETNs has also arrived in calmer waters. “You can't say that the lower prices are being used to enter the market,” comments Schröer and reports on purchases and sales. Orlemann also sees business in both directions. Bitcoin has slipped below the 60,000 US dollar mark and was trading at 58,800 US dollars on Tuesday lunchtime.
By Anna-Maria Borse, 3 September 2024, © Deutsche Börse AG
About the Author
Anna-Maria Borse is a financial and business editor specializing in the financial market/stock exchange and economic topics.
Feedback and questions to redaktion@deutsche-boerse.com.
Borse
Deutsche Börse 
