The fantasy surrounding the topic of artificial intelligence continues to drive extremely high demand for tech ETFs. However, the classics are also continuing to gain ground, most recently S&P 500 trackers in particular.
20 February 2024. FRANKFURT (Börse Frankfurt). The enthusiasm for tech in ETF trading continues. "We are seeing endless buying in technology ETFs," reports Andreas Schröer from Lang & Schwarz. Extremely popular: the iShares S&P 500 Information Technology (IE00B3WJKG14) and Xtrackers Artificial Intelligence & Big Data (IE00BGV5VN51). The ETFs have each gained 11% since the start of the year alone, with annual gains of 20% and 13% over the three-year period. Also popular: the VanEck Crypto and Blockchain Innovators (IE00BMDKNW35). "Everything is currently going into tech ETFs, we are seeing a little less in the major indices such as MSCI World," says Schröer.
Recently, however, the tech sector had to take a breather: after the Nasdaq 100 reached an all-time high of over 18,000 points a week and a half ago, the tech index fell slightly. The Nasdaq currently stands at 17,600 points. By contrast, the DAX climbed to a new record high of 17,198 points on Friday and 17,058 points on Tuesday lunchtime.
Tech ETFs are now also high up in the Xetra turnover lists: The iShares S&P 500 Information Technology and the Xtrackers Artificial Intelligence & Big Data are ranked 7th and 8th in the Xetra turnover list in January. Only iShares trackers on the MSCI World, Euro Stoxx 50, S&P 500, DAX and Stoxx Europe 600, as well as the currently popular money market ETF Xtrackers II EUR Overnight Rate Swap (LU0290358497) are ahead of them.
"Setbacks used for entry"
As far as the major indices are concerned, Holger Heinrich from Baader Bank clearly reports more buying than selling with increased turnover - with US equities as the favorites. "It seems as if investors took advantage of the setback in the US indices to enter the market," explains the trader. ESG variants in particular were well received, such as the SPDR S&P 500 ESG Leaders (IE00BH4GPZ28), the Franklin S&P 500 Paris Aligned Climate (IE00BMDPBZ72) and the Invesco Nasdaq 100 ESG (IE000COQKPO9). Also popular: US small caps (IE00B3VWM098).
Among the MSCI World ETFs, Baader Bank also often focuses on ESG variants, for example with the Invesco MSCI World ESG Climate Paris Aligned (IE000V93BNU0). "Products with a value focus (A3CUJR; A3DUNS) were also in focus," adds Heinrich.
Active ETFs also fell
With regard to European equities, there was a certain reluctance to invest last week, as Heinrich also notes. Here too, ESG products were preferred, but also mid-cap ETFs. The JPM Europe Research Enhanced Index Equity (ESG) (IE00BF4G7183), an active ETF, is in demand, as are traditional ETFs such as the iShares MSCI Europe ESG Enhanced (<IE00BHZPJ676Y) and the Amundi MSCI Europe ESG Broad CTB (LU1681042609).
In the US, passive strategies have overtaken actively managed strategies for the first time in the history of the fund industry, according to analysts Morningstar. According to Morningstar data, passive strategies accounted for 50.02% at the end of January, while active strategies only accounted for 49.98%. Europe is still a long way off: passive strategies accounted for just 26.7% of total assets under management at the end of December 2023. Nevertheless, the trend is clear: it is on the rise; according to Morningstar, the proportion was only 12.3% ten years ago. Morningstar refers to all open-ended funds and ETFs, but not money market funds and funds of funds.
Bitcoin rally revives ETN trading
Trading in crypto ETNs is busy again at Lang & Schwarz. Bitcoin reached a new multi-year high of USD 52,705 last week and is currently still at USD 51,758. "The high turnover in Solana and Cardano ETFs, with purchases and sales, is striking," reports the trader. Bitcoin trackers from the ETC Group (DE000A27Z304), CoinShares (GB00BLD4ZL17), 21Shares (CH0454664001) and VanEck (DE000A28M8D0) are currently heavily traded on Xetra.
by Anna-Maria Borse, 20 February 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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