30.05.23 15:52:58
ETFs: Skepticism about US equities
German stocks popular, US stocks unpopular - that doesn't happen so often. The wrangling in the U.S. over the debt ceiling has apparently scared off some. Meanwhile, AI ETFs remain in demand, as do money market trackers.
30 May 2023. FRANKFURT (Börse Frankfurt). The US debt dispute now seems to have been put to one side, but the mood on the markets is not really exuberant. Congress still has to approve the deal between President Joe Biden and Republican Kevin McCarthy. The DAX is back at 16,050 points at noon on Tuesday, but still below the all-time high of 16,332 points a week and a half ago. In ETF trading, the past week was even marked by selling. "Sales predominated with 53 percent this time, especially S&P 500 ETFs were sold," reports Frank Mohr of Société Générale. Leo Puschmann of Lang & Schwarz speaks of "no abnormalities" in the trading of the large ETFs.
At Société Générale, U.S. and global equities once again dominate trading. Mohr speaks of "significant declines" in U.S. equities, such as S&P 500 trackers from iShares, Xtrackers and Amundi (IE00B5BMR087, LU0490618542, LU1681048804). "That's where I think the debt dispute has had an impact." For global stocks, on the other hand, inflows and outflows balance each other out. And while Europe's stocks tend to be sold off, German stocks are on shopping lists (DE0005933931).
Artificial intelligence: share price up 37 percent
Artificial intelligence remains a big theme. "This is a clear trend," explains Leo Puschmann. He sees a lot of interest in Xtrackers Artificial Intelligence & Big Data (IE00BGV5VN51). The ETF is up 37 percent year-to-date and 17.4 percent year-to-date over three years. The heavyweights are the very big names with Nvidia, Meta, Amazon, Alphabet and Microsoft.
In addition to Xtrackers Artificial Intelligence & Big Data (IE00BGV5VN51), other ETFs can be used to bet on AI, such as Amundi Stoxx Global Artificial Intelligence (LU1861132840), WisdomTree Artificial Intelligence (IE00BDVPNG13) and L&G Artificial Intelligence (IE00BK5BCD43). Somewhat broader is the Global X Robotics & Artificial Intelligence (IE00BLCHJB90), which also includes the robotics sector.
At Société Générale, most of the activity revolves around technology, healthcare and financial stocks - but with the opposite signs as in the previous week: tech and financial sectors are sold, the healthcare sector is bought. For example, investors are divesting from iShares Automation & Robotics (IE00BYZK4552) and iShares Stoxx Europe 600 Technology (DE000A0H08Q4). Instead, they rely on the iShares Healthcare Innovation (IE00BYZK4776) and MSCI World Health Care trackers from Xtrackers (IE00BM67HK77) and Amundi (LU0533033238). Themed ETFs such as iShares Ageing Population (IE00BYZK4669) and iShares Global Water (IE00B1TXK627) are being dumped.
Money market trackers get a lot of support
In the bond ETF business, money market and near-money market funds remain high in investors* favor, Mohr notes, such as Lyxor Euro Overnight Return (FR0010510800) and JPM BetaBuilders US Treasury Bond 0-1yr (IE00BJK3WF00). Also in demand: the Deka Deutsche Boerse Eurogov Germany 10+ (<DE000ETFL219)>, which tracks long-term government bonds from Germany. "Corporate bonds are not a big theme at the moment."
Crypto and commodity ETPs in demand
Trading in crypto ETNs has picked up somewhat, according to Puschmann. "Mostly these are purchases," the trader specifies. In addition, trading in gold, silver and gas ETCs is also seeing some turnover - in both directions. Most popular products: Xetra Gold (DE000A0S9GB0), the WisdomTree Physical Silver (JE00B1VS3333) and WisdomTree's two triple-leveraged gas ETCs, long and short (<IE00BLRPRG98>, <IE00B76BRD76>). The forward contract for Dutch natural gas (Dutch TTF), which is relevant for Europe, had recently fallen below 30 euros/MWh - the lowest since mid-2021. After the outbreak of the Ukraine war, it was temporarily over 300 euros/MWh.
Shares |
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USA | Sales |
World | Purchases/Sales; |
Europe | Sales |
Germany | Purchases |
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Industries/Topics |
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AI | Purchases |
Technology | Sales |
Health | Purchases |
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Commodity ETCs |
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Gas | Purchases/Sales |
Gold/Silver | Purchases/Sales |
by Anna-Maria Borse, 30 May 2023, © Deutsche Börse
About the author
Anna-Maria Borse is a finance and economics editor specializing in financial markets/stock markets and economic topics.
Feedback and questions to redaktion@deutsche-boerse.com
Borse
Deutsche Börse 
