03/06/25 13:01:44

ETFs: “Products with US exposure purchased only hesitantly”

Due to the weakness of US stocks, German and other European stocks are now extremely popular. Defense trackers also continue to perform well. Issuers are responding with a steady stream of new products.


3 June 2025. FRANKFURT (Börse Frankfurt). The trend toward European equities continues. “DAX and European ETFs are selling well,” reports Moritz Kretschmann, who trades ETFs for Lang & Schwarz. However, there is skepticism regarding US stocks. “ETFs with a US connection are still being bought only hesitantly,” explains Holger Heinrich of Baader Bank. He reports an overall buyer surplus in the ETF business, with slightly lower sales. Although the DAX is currently treading water, it is still up 19 percent since the beginning of the year, while the Stoxx Europe 600 is up 7 percent. The S&P 500 has only gained a small 1 percent since the beginning of the year, while the Nasdaq 100 is up 2.5 percent.

The most heavily traded and popular ETFs currently include DAX trackers from iShares (DE0005933931) and Xtrackers (LU0274211480), as well as Stoxx Europe 600 ETFs, such as those from Amundi (LU0908500753). According to Heinrich, dividend products such as the Amundi Euro Stoxx Select Dividend 30 (LU2611732558) are particularly in demand. Some MSCI EMU trackers and the Deka DAX ex Financials 30 (DE000ETFL433), which excludes financial institutions, are being sold off.

Restraint with US stocks, active ETFs sought

According to Heinrich, world ETFs are also mostly on the shopping lists, i.e., different variants of the MSCI World (IE000BZ1HVL2, IE000V6KDJC9) and the MSCI World ACWI (IE000VXC51U5). On the other hand, the BNP Paribas Easy ECPI Circular Economy Leaders (LU1953136527), which focuses on companies in the circular economy, and the BNP Paribas Easy ECPI Global ESG Blue Economy (LU2194447293), which focuses on companies that are pioneers in the sustainable use of marine resources, are being sold off.

Interest in US equities remains low: according to Heinrich, the only products in demand are a few classic S&P 500 trackers (LU2581375073) and minimum volatility products (IE00BYX8XD24). Also in demand: actively managed ETFs such as the JPM US Research Enhanced Index Equity Active (IE000W85O7M4). This focuses on US companies and attempts to outperform the S&P 500.

Defense sector remains a big hit

Once again, the defense sector stands out in the trading of sector ETFs. “There is steady buying,” reports Kretschmann. The focus at Lang & Schwarz is on WisdomTree Europe Defense (IE0002Y8CX98), the first ETF to focus on European defense companies.

More and more defense ETFs.

Due to the boom, a number of other defense ETFs focusing on Europe have recently come onto the market, specifically the BNP Paribas Easy Bloomberg Europe Defense (LU3047998896, LU3047998979), the iShares Europe Defense (IE000IAXNM41), the Amundi Stoxx Europe Defense (LU3038520774) and the Global X Europe Focused Defense Tech (IE000WRQ9RR1). However, the largest defense ETF by far remains the VanEck Defense (IE000YYE6WK5), which now manages around US$5 billion. In second place is WisdomTree Europe Defense with EUR 2.2 billion, followed by HANetf Future of Defense in third place with EUR 2.1 billion (IE000OJ5TQP4). 

Is defense a “hyped” or a long-term investment theme? ETF magazine extraETF has addressed this question. The conclusion: defense is a long-term trend. “Unlike thematic investments such as video games or cannabis, defense is a long-term commitment of essential importance,” explains Thomas Brummer. However, it is important not to overdo it—and in any case, to invest globally and broadly. 

Popular gold ETCs

There is also considerable activity in gold ETCs, as Kretschmann notes, for example in Xetra Gold (DE000A0S9GB0), which has seen many purchases. Copper ETCs such as WisdomTree Copper (GB00B15KXQ89) are also generating strong sales.

By Anna-Maria Borse, 3 June 2025, Deutsche Börse AG ©

Anna-Maria Borse is a financial and business editor specializing in financial markets/stock exchanges and economic issues.

Feedback and questions to redaktion@deutsche-boerse.com