Equity index trackers and commodity ETCs remain in demand, even if hopes of a rally have faded. Some sectors are also receiving more attention.
20 December 2022. Frankfurt (Börse Frankfurt). Price losses instead of the hoped-for year-end rally weighed on the mood on the ETF market before Christmas. While positive U.S. inflation data in the previous week had initially stoked hopes of an end to interest rate hikes by the central banks, the monetary watchdogs of the Fed and the ECB ultimately abruptly dampened this expectation. The DAX fell from a good 14,600 points at midweek to 13,900 points most recently.
Turnover developed quite differently. "In a year-on-year comparison, our weekly turnover was below average," reports Fabian Wörndl of Lang & Schwarz. Traded were mainly equity index trackers and commodity ETCs in one of the weakest stock market weeks of the year. "Some clients* buy very often on setbacks, but the bulk is now holding back."
Holger Heinrich of Baader Bank, on the other hand, reports that turnover in the major equity ETFs has picked up again. Baader also saw a balance of buying and selling.
Newly launched US equity index trackers with ESG focus
Among U.S. equity products, ESG variants are again at the forefront of sales. Among them, the JPM Global Research Enhanced Index Equity (ESG) UCITS ETF - EUR Hedged (acc). (IE0000UW95D6). With a volume of just over EUR 25 million, it is one of the small ETFs on the market.
High on the buy lists is the iShares S&P 500 ESG UCITS ETF (Acc) EUR-Hedged (IE000CR7DJI8>), which has only been on the market since August of this year and, with 60 million euros in volume, is also still one of the small products on the ETF market. From Vanguard, the ESG North America All Cap (IE000L2ZNB07) is preferred, also an ETF that was only recently launched.
In addition to the popularity of global equities, Lang & Schwarz notes increased interest in individual sectors: for example, L&G Hydrogen Economy (IE00BMYDM794) is primarily bought.
Commodity ETCs: speculation on demand from China
After the covid-loosenings in China, commodities are moving more into focus: "We are seeing increased buying in copper mines here," explains Wörndl. Obviously, there is speculation on rising prices when China again demands more raw materials. According to Lang & Schwarz, Global X Copper Miners (IE0003Z9E2Y3) is a popular buy.
Rather falling gas prices are also being used for ETC exposure: While long products such as the WisdomTree Natural Gas 3x Daily Leveraged Kurs (WKN: A3GL7C | ISIN: IE00BLRPRG98) tend to be sold, Wörndl notes mainly purchases of the short counterpart (IE00B76BRD76).
Crypto ETPs: Little business
The crypto market remains quiet with low turnover. "The volume is not comparable to the beginning of the year," Wörndl summarizes. At least in the major cryptocurrencies, however, there is some movement, he said. Bitcoin, the world's largest cryptocurrency, has lost about two-thirds of its value since the beginning of the year, as has Ethereum, the market's No. 2.
Bonds: Concerns about continued restrictive central banks
The bond market is also becoming quieter, although concerns about an overly restrictive stance by the FED and ECB continue to weigh on the markets. "Interestingly, the performance of U.S. dollar bonds in recent days has lagged significantly behind that of
EUR securities, even though they caught up yesterday," says Michael Ott of Commerzbank, describing what is happening. He said that this means that obviously the pent-up demand of EUR securities in terms of interest rates is coming to fruition, while the market does not really want to believe the restrictive words of the U.S. Federal Reserve and continues to bet on crossing the interest rate peak. "As a rule, central banks are also slower than the
market, so that in the end the market should be proven right," Ott sums up.
Equities |
|
World | purchases |
USA - ESG | purchases |
Europe | purchases |
|
|
Kryptos | purchases and sales |
Commodities | purchases and sales |
Energy/Hydrogen | purchases |
from: Antje Erhard, 20 December 2022, © Deutsche Börse AG
Antje Erhard is a journalist and moderator specializing in the stock market, business and finance.
Feedback and questions to redaktion@deutsche-boerse.com.
Erhard