ETFs: “Increased caution”

Strong buying, but also increased selling: investors are becoming somewhat more cautious. US stocks dominate trading, while emerging markets end up in portfolios. Sales of financial stocks characterize the financial sector.
 

October 21, 2025. Following the recent pronounced euphoria, profits are currently being taken in ETF trading on the Frankfurt Stock Exchange. “In an environment of slightly declining turnover, we recorded slightly more sales than purchases,” reports Holger Heinrich of Baader Bank AG. Frank Mohr of Société Générale continues to report a buying surplus, but at 62 percent, it is significantly lower than in previous weeks.

Demand for global index funds remains stable. According to Heinrich, in addition to classics such as the UBS Core MSCI World (IE000TB15RC6), sustainable variants such as the Amundi MSCI World Climate Paris Aligned (IE000CL68Z69) and “multifactorial approaches” such as the iShares Edge MSCI World Multifactor (IE00BYXPXK00) are also coming into focus. Multifactor ETFs combine different investment strategies, such as value and momentum approaches.

US index funds with striking momentum

Heinrich observes a revival in trading in US ETFs, driven primarily by quality and dividend strategies. The SPDR S&P 500 Quality Aristocrats (IE000FJJZA01) is seeing strong buying. The index fund contains shares of companies that must meet specific quality criteria. Niche products such as the Franklin US Dividend Tilt (IE000Z4OBQK4) and small-cap ETFs such as the UBS MSCI USA Small Cap Selection (IE000XFXBGR0) and the Amundi Russell 2000 (LU1681038672) are being sold.

Mohr also reports very brisk trading in US equities. In particular, the iShares Core S&P 500 (IE00B5BMR087) and the currency-hedged Amundi Core S&P 500 Swap EUR Hedged Dist (LU0959211243) are being “diligently ordered.” Mohr reports sales for the SPDR S&P 500 (IE000XZSV718), currently the most cost-effective tracker of the most important US index.

ICF Bank's clientele is heavily focused on multiple leveraged products. ETF trader Ivo Orlemann sees increased sales for the WisdomTree S&P 500 3x Daily Leveraged (IE00B7Y34M31) and the WisdomTree NASDAQ 100 3x Daily Leveraged (IE00BLRPRL42).

Strong demand for ESG and dividend ETFs

According to Mohr, there is high volume in Europe, but no clear trend. While ETFs on the MSCI Europe (IE00B4K48X80) and the Stoxx Europe 600 (DE0002635307 and LU0908500753) are mostly being bought, the L&G MSCI Europe Climate Pathway is mostly on the sell lists (IE00BKLTRN76).

Heinrich has noted strong interest in dividend- and ESG-oriented strategies such as the SPDR S&P Euro Dividend Aristocrats ESG (IE00BYTH5T38) and the Amundi MSCI EMU ESG Broad Transition (LU0908501058). Country indices such as the German MDAX (DE000ETF9074; DE000A2QP349) are being sold off in particular. The Xtrackers Spain (LU0592216393) and Amundi MSCI Greece (FR0010405431) are also being sold off for the most part.

Mohr reports “above-average sales and a clear buying surplus” for emerging markets. Standard indices such as the MSCI Emerging Markets (LU2573966905; IE00BKM4GZ66; IE000KCS7J59) are particularly popular.

Arms, technology, and precious metals remain in demand

In trading with sector ETFs, Orlemann reports continued strong interest in arms and defense (IE000YYE6WK5; IE0002Y8CX98; IE000M7V94E1). Precious metals also remain a hot topic. In addition to gold and silver ETCs, gold mining stocks are also frequently ordered (IE00BQQP9F84).

Tech stocks are always in demand, with Mohr reporting good sales on both sides of the order book this time around (IE00BGV5VN51). There are significant sales in the financial sector. The iShares S&P 500 Financials Sector (IE00B4JNQZ49) and Amundi EURO STOXX Banks (LU1829219390) are being sold off. This is likely due to the current problems facing US regional banks, which have also weighed on European financial stocks.