29/07/25 13:25:34

ETFs: DAX loss as an entry opportunity

No one is deterred by the DAX setback caused by the customs agreement, but overall, European stocks are no longer as popular. Defense stocks continue to perform well.


29 July 2025. FRANKFURT (Börse Frankfurt). European stocks have lost their favored status – and this trend is continuing. Holger Heinrich from Baader Bank reports purchases of global and US stocks, but purchases and sales of European stocks. However, DAX stocks are mostly being bought this week, as Michael Norizin from Lang & Schwarz reports. Apparently, the lower prices are being used as an opportunity to buy.

The trade agreement between the US and Europe, which was concluded over the weekend, had temporarily pushed the DAX below the 24,000-point mark. On Tuesday afternoon, it was back up to 24,230 points. 

Buying mood continues

Overall, Norizin also sees a buying surplus for equity ETFs, with a focus on major indices such as the S&P 500 and MSCI World. Baader Bank trader Heinrich reports inflows into various versions of the MSCI World, such as the Amundi MSCI World SRI Climate Paris Aligned (IE000004V778) and the Xtrackers MSCI World Value ESG (IE000LAUZQT6). Also popular: the iShares World Equity High Income (IE000KJPDY61), an active ETF. It invests in developed market equities based on quantitative models and ESG criteria and aims to generate additional income through the sale of options and purchase of futures. 

European equities without a clear direction

According to Heinrich, US equities are also mostly on the shopping lists. These are mainly MSCI USA ETFs, but also small cap (IE00BH3YZ803) and dividend stocks (IE000Z4OBQK4). The situation is different for ETFs that track the European stock market. “There is no clear picture here. Purchases and sales are roughly balanced,” Heinrich notes. Among others, MSCI Europe, MSCI EMU, and small-cap ETFs are being bought, while minimum volatility and dividend index funds are being sold.
 

Defense trackers: Profit-taking at times

According to Ivo Orlemann of ICF Bank, three defense trackers continue to generate the highest turnover in trading with sector ETFs: VanEck Defense (IE000YYE6WK5), WisdomTree Europe Defense (IE0002Y8CX98), and Global X Defense Tech (IE000JCW3DZ3). “But now and then you also see sales,” reports the trader. Since the beginning of the year, the VanEck ETF has gained 36 percent, and since the beginning of 2024, the price has more than doubled.  
 

Ivo Orlemann

Ivo Orlemann

Crypto ETNs in demand

According to Orlemann, business with crypto ETNs continues apace, for example with Solana and Ethereum trackers. Two weeks ago, Bitcoin rose to a new record high of US$123,020; it currently stands at US$119,000. 
The silver boom has also come to an end. The price is currently back at $38.20 after reaching a 14-year high of $39.54 last week. “Commodity ETCs are not playing a major role at the moment,” reports Orlemann. 

By Anna-Maria Borse, 29 July 2025, © Deutsche Börse AG 

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

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