ETFs: Slight uncertainty
Investors are rediscovering government bonds and are increasingly focusing on Chinese and euro bonds. In terms of equities, the focus is on innovative pharmaceutical companies, water groups and technology stocks.
20 July 2021. FRANKFURT (Börse Frankfurt). Trading in exchange-traded index funds is currently relaxed in the summer. "Turnover is keeping within limits," describes Carsten Schröder from Société Générale. Even with yesterday's "small slide" on the stock markets, the ETF volume could not have kept up to the same extent.
Of the past week, the trader paints a mixed picture. Among the biggest winners were S&P 500 products from the likes of iShares (IE00B5BMR087) and Invesco (IE00B3YCGJ38). Investors also bought MSCI World (IE00B4L5Y983) and DivDAX (DE0002635273) ETFs. Tracker of the MSCI World Socially Responsibility- (LU0629459743), MSCI Europe (LU1681042609) and MSCI USA Value Factor (IE00BD1F4M44) had been sold conspicuously often.
(Kopie 4)
Turning away from European values
Hubert Heuclin confirms some of Schröder's observations. MSCI World products with sustainability factor (LU0629459743) were among the bigger losers at BNP Paribas, as were index funds based on MSCI Europe (LU1681042609) and MSCI Europe Value Factor (IE00BQN1K901). In contrast, MSCI Europe ex-UK ETFs (<IE00B14X4N27) were clearly up.
Heuclin
Setbacks as buying opportunity
S&P 500 portfolios have added funds in aggregate, Heuclin informs. Incidentally, JP Morgan analysts consider recent losses in the broad-based index due to concerns about a possibly weaker expanding economy and rising Corona infections as premature and overdone. According to them, stocks in the S&P 500 are characterized by strong earnings growth and a growing return on capital. In the setbacks, the U.S. major bank sees buying opportunities for cyclical consumer goods such as retail, travel & leisure and banks and energy, among others. Also, while contagions of the delta variety were on the rise, deaths and hospitalizations were holding at low levels, it said.
Reach for gold producers and innovative pharmaceutical stocks
Turnover in sector ETFs at BNP Paribas focused on gold miners in the S&P Commodity Producers Gold (IE00B6R52036) and healthcare stocks based on the Stoxx Global Breakthrough Healthcare (IE00BYZK4776). The latter includes stocks of companies that focus on advancing medical treatments and technologies.
Fabian Wörndl of Lang & Schwarz says demand for Solactive Clean Water (IE00BK5BC891) and S&P Global Water 50 (IE00B1TXK627) products remains strong. Investors also increasingly bet on rising prices of technology stocks with Nasdaq 100 Eur Hedged ETFs (LU1681038599).
Betting on China bonds
In fixed-income trading, Heuclin and Schröder report a noticeable uptick in Chinese government bonds referencing the Barclays China Treasury Policy Bank Index (IE00BYPC1H27). BNP Paribas clients also backed eurozone government bonds in the Bloomberg Barclays Euro Government Bond 1-3 Year (IE00B14X4Q57) and Markit iBoxx EUR Eurozone 1-3 (LU0290356871). According to Heuclin, investors are generally finding government securities more attractive again. This is due, among other things, to the rising price pressure and the increasing numbers of infections with the delta variant, not only in the United States. In addition, there are dwindling prospects of a very large fiscal package from the U.S. government and slower growth in the Chinese economy. Heuclin can hardly understand the change in sentiment. In his view, none of the reasons justifies the current positioning.
By: Iris Merker
20 July, 2021, © Deutsche Börse AG
| Shares | |
| World | Buys and Sales |
| World Value Factor | Sales |
| World SRI | Sales |
| USA | Buys and Sales |
| USA Value Factor | Sales |
| Europe | Sales |
| Europe ex UK | Buys |
| Germany Dividend stocks | Buys |
| Industries | |
| Innovative pharmaceutical companies | Buys |
| Technology stocks | Buys |
| Water extraction and treatment | Strong Buys |
| Gold producers | Buys |
| Bonds | |
| Government Bonds China | Strong Buys |
| Euro area government bonds | Buys |
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