The first two months on the stock markets have brought strong price gains, especially for Europe's shares. Bank shares are also doing extremely well. This has also caught on with investors.
28 February 2023. Frankfurt (Börse Frankfurt). The price performance of European equities remains a topic of conversation in the ETF business. "The outperformance of the DAX against U.S. stocks is quite astonishing," notes Jan Duisberg of Baader Bank. "The DAX doesn't seem to mind the sharp rise in interest rates, while U.S. stock markets have already fallen back, in some cases significantly." In fact, the DAX still comes to a plus of 9.5 percent since the beginning of the year, the Dow Jones has meanwhile slipped into the minus zone.
Duisberg sees buying for DAX ETFs such as Deka DAX, but definitely also inflows into Nasdaq and S&P trackers (IE00B3YCGJ38). "Nasdaq ETFs are still seen to have some potential, prices are still far from their highs after all." Always in demand: MSCI World ETFs like the one from Deka (DE000ETFL508).
Indian stocks on sell lists
"It's the usual for us at the moment," reports Fabian Wörndl of Lang & Schwarz. However, he says the interest in India is unusual - Chancellor Scholz's visit and the country's G20 presidency may play a role. Wörndl reports heavy turnover for the Xtrackers MSCI India (LU0514695187) - and sales at that. It's down nearly 7 percent year-to-date, bucking the trend in most markets. "We are also seeing interest in more exotic stocks," Duisberg adds. Buying, for example, would be Japanese stocks (IE00BVXC4854)
Banking ETFs up more than 20 percent
As for sector ETFs, Wörndl reports interest in bank trackers, such as the iShares Stoxx Europe 600 Banks (DE000A0F5UJ7). "We're seeing increased buying there." The ETF is up 18.9 percent year-to-date. It tracks banks from across Europe, with just over half from eurozone countries and 30 percent from the UK. Heavyweights currently include HSBC, BNP Paribas, Banco Santander, ING and Nordea. Bank ETFs are currently among the most traded ETFs on the Frankfurt Stock Exchange. In addition to the iShares Stoxx Europe 600 Banks, the iShares Euro Stoxx Banks 30-15 (DE0006289309) is also doing well. The comes even to a price increase of almost 21 percent this year.
At Baader Bank, investors are currently betting a lot on the VanEck Hydrogen Economy (IE00BMDH1538). It first performed well this year and then weakened, but has still posted a gain of 10.5 percent since the beginning of the year.
Interest in gold and silver ETCs
According to Wörndl, there is also a lot going on in the precious metals ETC business at the moment. "There is a lot of buying going on." He cites WisdomTree Physical Silver (JE00B1VS3333) and Xetra-Gold (DE000A0S9GB0) as examples. Apparently, investors* think the recent price decline is overdone: The gold price, which had risen sharply in January, has now slipped below the level at the beginning of the year, currently at $1,809. The price of silver has even fallen significantly this year.
The recent recovery of cryptocurrencies is also a thing of the past. Bitcoin currently costs only 21,976 US dollars again. This is also reflected in the trading of crypto ETNs, as Wörndl notes: "It has become quieter."
"Rich like Norway" with ETF portfolio
Asset manager and best-selling author Christian W. Röhl has just presented an ETF portfolio on Twitter that is based on the extremely successful Norwegian sovereign wealth fund. It consists of just six ETFs. The base investment of 50.4 percent is Vanguard ESG Global All Cap (IE00BNG8L278), which tracks global equities with ESG filters. This is complemented by "green" bonds, with the Lyxor Green Bond (LU1563454310), and short- and medium-term SRI bonds, the Amundi Global Agg SRI 1-5 (LU2470620761) - both with a 13.5 percent share. There is also a European exposure with the Vanguard ESG Developed Europe All Cap (IE000QUOSE01) with 12.6 percent. A real estate ETF, the iShares Developed Markets Property Yield (IE00B1FZS350), and a renewable energy ETF, the Global X Renewable Energy Producers (IE00BLCHJH52), each account for 5 percent.
"Because some funds are quite new, the history is manageable," Röhl explains. Live tracking of portfolio performance is available at https://capinside.com/portfolios/reich-wie-norwegen. One note: The iShares Developed Markets Property Yield is traded on the Frankfurt Stock Exchange only in a distributing variant (<IE00BFM6T921>).
Roehl
Equitys | |
Germany | Purchases |
Europe | Purchases |
USA | Purchases |
World | Purchases |
India | Sales |
Branchen | |
Banks | Purchases |
Precious metal-ETCs | |
Gold | Purchases |
Silver | Purchases |
von: Anna-Maria Borse, 28 February 2023, © Deutsche Börse AG
Anna-Maria Borse is a finance and economics editor specializing in financial markets/stock markets and economic topics.
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Borse