Global indices, tech stocks or more specialized stocks such as AI or cloud ETFs: almost everything is doing well at the moment. Emerging markets are also back on the agenda, although opinions differ on China. On the other hand, competitor India is popular.
6 February 2024. FRANKFURT (Börse Frankfurt). New all-time highs on the US stock exchanges and also in Germany - ETFs are also being snapped up. In any case, traders are reporting very good turnover. "Our volumes were well above average," reports Frank Mohr from Société Générale, for example, and speaks of a clear surplus of buyers. Jan Duisberg, who trades ETFs for ICF Bank, also sees continued high turnover and many purchases.
According to Mohr, MSCI World trackers are particularly in demand, while US equities tend to be sold on balance. MSCI World ETFs are also well received at ICF, specifically the Deka MSCI World (DE000ETFL508). However, the iShares Dow Jones Global Titans 50 (DE0006289382) is also popular. This tracks the 50 largest Dow Jones companies, measured by market capitalization, turnover and net profit. The focus is currently on the tech giants Microsoft, Nvidia, Amazon, Apple, Meta, Alphabet and Tesla, as well as Eli Lilly and Broadcom.
India rather than China
Striking: the higher turnover in emerging market ETFs, with inflows and outflows. "Some people are now seeing a bottom forming in China," explains Duisberg with a view to the new lows on China's stock markets. The HSBC Hang Seng Tech (IE00BMWXKN31), for example, is being bought. The iShares MSCI EM ex-China (<IE00BMG6Z448Y) is also in demand. This relatively new ETF explicitly excludes China, and the price has moved almost exclusively upwards since the ETF was launched last November. Mohr also reports higher turnover in emerging market ETFs, but mostly losses. The iShares Core MSCI EM IMI (IE00BKM4GZ66), for example, was affected. Leo Puschmann from Lang & Schwarz sees business in both directions with regard to Chinese equities. "But we are buying India heavily," he explains, for example with the iShares MSCI India (IE00BZCQB185). Over the past three years, it has gained 14.3 percent per year and has therefore performed much better than the general emerging markets index.
According to the issuer SPDR, January was another good month for the European ETF market. A total of 22.4 billion US dollars flowed into ETFs, with the lion's share of 14 billion US dollars going into equity ETFs, as Sophia Wurm reports. "In the context of new all-time highs, global equities (USD 7.4 billion) and US equities (USD 4.5 billion) were particularly in demand," she explains. In terms of sectors, both the tech and healthcare industries were in demand. According to Wurm, there were again slight outflows from eurozone and CSI 300 ETFs. 8.3 billion US dollars flowed into bond ETFs, primarily into euro corporate bonds with good credit ratings and government bonds, as well as money market investments.
AI, big data, cloud - tech stocks top everything
Technology and especially AI - this is what continues to attract the most interest in sector ETFs. According to Duisberg, the L&G Artificial Intelligence (IE00BK5BCD43) is popular, as is the WisdomTree Artificial Intelligence (IE00BDVPNG13), but also ETFs with a cloud focus such as the WisdomTree Cloud Computing (IE00BJGWQN72). Mohr has registered brisk demand for S&P 500 Information Technology and MSCI World Information Technology ETFs, for example from iShares (IE00B3WJKG14) or Amundi (LU0533033667). Xtrackers Artificial Intelligence & Big Data (IE00BGV5VN51) is also a popular choice. This is also popular at Lang & Schwarz, as is the S&P 500 Information Technology tracker from iShares.
The healthcare sector is also popular. According to Mohr, ETFs such as the Lyxor Stoxx Europe 600 Healthcare (LU1834986900) are also popular.
Money market trackers continue to gain ground, back and forth in cryptos
According to Société Générale, money market products remain at the top of the list of favorites in the bond sector, for example with ETFs from Lyxor (FR0010510800) and Xtracker (LU0290358497). European (LU1681046691) and US government bonds were also well received. "iBonds are also showing good turnover," added Mohr.
Trading in crypto ETNs remains busy, according to the traders at ICF and Lang & Schwarz. According to Puschmann, the ETC Group Physical Bitcoin (DE000A27Z304) is currently seeing the most turnover - in both directions. In the hope of approval of the Bitcoin spot ETF in the US, Bitcoin rose to over USD 46,000 at the beginning of the year; the cryptocurrency currently costs USD 42,770.
By Anna-Maria Borse, 6 February 2024 © Deutsche Börse AGVon Anna-Maria Borse, 6. Februar 2024 © Deutsche Börse AG
Anna-Maria Borse is a financial and business editor specializing in the financial market/stock exchange and economic topics.
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