Around the Easter holidays, ETF trading is a bit quieter, but buying dominates. Especially world and U.S. equities are well received. In contrast, the sales of European shares continue.
19 April 2022. Frankfurt (Börse Frankfurt). The significant rise in interest rates, concerns about China's economy and unchanged disturbing news from Ukraine continue to weigh on the stock market after the Easter holidays. The DAX continues to fluctuate around 14,000 points, at noon on Tuesday it is 14,030 points. That is significantly more than at the low of 12,431 points at the beginning of March, but still clearly below the prices at the end of 2021.
Uncertainties remain high. Nevertheless, buying predominated, as Frank Mohr of Société Générale reports. "The focus remains on global and U.S. equities." Inflows were seen in the iShares Core MSCI World (IE00B4L5Y983), Lyxor MSCI World (<LU0392494562>) and BNP Paribas Easy S&P 500 (FR0011550177), for example. Nasdaq trackers such as the iShares Nasdaq 100 (IE00B53SZB19) are also on shopping lists, he said. "European equity ETFs are trading more again, but mostly sold."
Mohr
Fabian Wörndl of Lang & Schwarz also reports steady interest in MSCI World ETFs. "Dips are used for purchases," explains the trader. As in previous weeks, Nasdaq trackers with leverage would also be traded a lot, specifically the WisdomTree Nasdaq 100 3x Daily Leveraged (IE00BLRPRL42) and the WisdomTree Nasdaq 100 3x Daily Short (IE00BLRPRJ20) - and in both directions.
Favorites: Infrastructure ETFs
In sector ETF trading, Mohr says iShares Global Infrastructure (IE00B1FZS467) is currently popular. The ETF tracks the FTSE Global Core Infrastructure, with companies in sectors such as utilities, industrials and energy. Current heavyweights include U.S. solar and wind energy company NextEra Energy, U.S. railroad Union Pacific, U.S. wireless communications equipment operator American Tower, Canadian pipeline operator Enbridge and U.S. energy provider Duke Energy. Over three years, the ETF comes in at a 10.7 percent annualized return.
In addition, technology, health care, industrial and energy stocks trade a lot, according to Mohr. "Technology stocks tend to be sold, the rest bought." The Xtrackers MSCI World Information Technology (IE00BM67HT60) and Xtrackers MSCI World Health Care (IE00BM67HK77), for example, are affected, he said.
On the upswing: gold mining ETFs.
The recent rise in the price of gold is also attracting investors back into gold mining ETFs, Wörndl reports. For example, the iShares Gold Producers (IE00B6R52036) is in demand. Wörndl also sees increased demand again for broad-based commodity ETFs such as the iShares Diversified Commodity Swap (IE00BDFL4P12), as well as for precious metals ETCs such as the WisdomTree Silver 2x Daily Leveraged (<DE000A0V9Y57>).
A lot of turnover also continues in iShares Global Clean Energy (IE00B1XNHC34), Mohr notes. "This is always by far the top-selling theme ETF for us." The index fund has been able to accumulate 4.6 billion euros in assets, and the price has risen sharply recently. However, the price highs of early 2021 have not yet been reached again.
Banking on falling bond yields
In the bond sector, Mohr says investors* are betting on European high-yield corporate bonds (IE00B66F4759), while parting with Amundi Government Bond Lowest Rated EuroMTS Investment Grade (LU1681046774), which tracks European investment-grade government bonds with weaker credit ratings. According to Wörndl, investors are betting on further falling prices of German government bonds with the Lyxor Bund Daily (-2x) Inverse (FR0010869578).
In the first quarter of 2022, investors globally invested 267 billion euros in ETFs, as reported by issuer Amundi. Equities remained the most popular asset class with inflows of 210 billion euros, while bond ETFs attracted 36.3 billion euros. However, European investors* withdrew 3 billion euros from eurozone equity ETFs in March in the wake of the Ukraine war. According to Amundi, they fled into less risky securities, such as government bonds, and also into gold and commodity products.
Crypto trading without big surges
Things are currently calmer in crypto ETN trading, as Wörndl notes. "The price movements of Bitcoin & Co are no longer directly reflected in buying and selling." Bitcoin is currently trading at $40,712, well below its November 2021 all-time high of $68,764. Ethereum is in a similar position: It is currently priced at $3,044, also far below its all-time high of $4,866.
Shares | |
World | Buys |
USA | Buys |
Europe | Verkäufe |
Industries | |
Infrastructure | Buys |
Technology | Verkäufe |
Health | Buys |
Gold mines/commodities | Buys |
Bonds | |
High Yield Corporate Bonds | Buys |
by Anna-Maria Borse 19 April 2022, © Deutsche Börse AG