Investors are investing in equity ETFs with a strong focus on sustainability. The sale of cryptocurrencies continues.
22 November 2022. Frankfurt (Börse Frankfurt). Although the stock market is faltering after seven consecutive weeks of rally, ETFs are in greater demand.
"Even though the rally still has to prove its sustainability in the coming days and weeks, ETFs are being bought primarily for asset accumulation," reports Fabian Wörndl of Lang & Schwarz. Savings plans are being executed regularly, he said, and capital is flowing into global products in particular.
"Although the stock markets were somewhat inconsistent last week, investors made decent purchases of the major ETFs," Holger Heinrich of Baader Bank also reports. He said his firm saw about 70 percent more buying than selling during the period. "This means that the restraint seen recently has dissipated."
Stock index tracker: USA and sustainability sought after
At Wörndl, investments are primarily in U.S. stock indexes. "Here, a classic from iShares is bought." In addition to investments in the S&P 500 ETF (IE00B5BMR087), however, speculation has also returned, he says. Wörndl sees high turnover in both directions in the WisdomTree NASDAQ 100 3x Daily Leveraged (IE00BLRPRL42) and its short counterpart (IE00BLRPRJ20). As quotes rise, interest in German equities also increases: Wörndl is seeing pick-up in buying of the iShares Core DAX (DE0005933931).
Baader clients are also buying global and European equity index trackers, especially with a focus on sustainability. Heinrich notes buy orders in a still young and still small ETF that has been on the market for just over a year, the JPMorgan Global Research Enhanced Index Equity (ESG) UCITS ETF (Dist) (IE000HFXP0D2>). It also buys a product that has been on the market for just under four years and has performed at an average annual rate of 16.08 percent since then, the UBS S&P 500 ESG (IE00BHXMHK04).
At the European level, a small ETF on Baader's buy lists is the iShares MSCI EMU SRI (<IE00BJLKK341>), which has gained nearly 10 percent over the month, followed by products that are also still young and quite small, including the Vanguard ESG Developed Europe All Cap (IE000QUOSE01) and the BNP Paribas Easy MSCI EMU ESG Filtered Min TE (LU1291098827).
Themed ETFs: Sustainability in demand
At Heinrich, the great interest in sustainability themed ETFs is generally conspicuous. The BNP Paribas Easy Low Carbon 100 Eurozone PAB UCITS ETF Cap EUR (LU2194448267) is being bought in particular. However, wind energy, hydrogen and fuel cells are also in strong demand again. In the wake of this, Invesco Wind Energy (IE0008RX29L5) and Invesco Hydrogen Economy (IE00053WDH64), both up just over 7 percent for the month, are being bought.
Oil ETCs: price declines trigger sales
With the easing of oil prices, interest in corresponding ETCs is also falling: "Last week, there was still buying here," explains Wörndl. This week, investors would again part with the products. Especially the iShares Oil & Gas Exploration & Production (IE00B6R51Z18) is taken out of the portfolios. Over the year, a plus of 65 percent stands here on the price lists.
Kryptos: Sales after FTX bankruptcy continue
After the insolvency of the crypto exchange FTX, the wave of sales in ETNs does not subside. Especially bitcoin, which has fallen to annual lows, is being sold off. At Lang & Schwarz, especially the BTCetc - ETC Group Physical Bitcoin (DE000A27Z304) is mainly sold.
In the bond market, the revival continues only in phases. Sales dominate this week. Wörndl has European government bonds of medium maturity on the sell lists (IE00B4WXJG34). At the same time, regional investments are made. For example, after recent sales, British gilts are now sought after, which manifests itself in purchases of the Vanguard U.K. Gilt UCITS ETF EUR Hedged Accumulating (IE00BMX0B524). Leveraged ten-year U.S. government securities are bought but also sold in the WisdomTree US Treasuries 10Y 3x Daily Short (IE00BKS8QT65).
Equties | ||
World | Purchases | |
Equties USA | Purchases | |
Equties Europe | Purchases | |
Equties Germany | Purchases | |
Krypto | Sales | |
Oil | Sales | |
Fixed Income | ||
European corporate bonds medium maturities | Sales | |
Brit. Government Bonds | Purchases | |
US-Government Bonds, 10 years | Purchases and Sales |
from: Antje Erhard, 22 November 2022, © Deutsche Börse AG
Antje Erhard is a journalist and presenter specializing in the stock market, business and finance.
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Erhard