ETFs: In a buying frenzy
Buy, buy, buy - that's the motto at the moment. US and global equities in particular are in demand, with a good ESG profile. Thematic ETFs that focus on clean energy or mobility of the future are also a big hit.
16 November 2021. Frankfurt (Börse Frankfurt). The record run on the stock markets continues, the DAX rises above 16,200 points for the first time on Tuesday morning, at noon are 16,217 points. "Investors remain in a buying mood, the stock markets play yes," explains Christian Dürr of Société Générale. Andreas Schröer of Lang & Schwarz reports high turnover. "There is really a lot going on at the moment."
Equities from all regions are in demand, but especially U.S. equities and MSCI World trackers. "Europe continues to lag behind the U.S., as there are few fast-growing tech companies here," notes Hubert Heuclin of BNP Paribas. In addition, nearly 82 percent of S&P 500 companies have surprised on the upside in the current quarterly reporting season, but only 60 percent globally, he says. "This is a testament to the impressive ability of U.S. companies to maintain or even increase margins in the current inflationary environment," the trader says. "The motto is 'America great again.'"
For example, Heuclin says the iShares Core S&P 500 (IE00B5BMR087) and the CSIF MSCI USA Small Cap ESG Leaders Blue (<IE00BMDX0L03>), which tracks small U.S. companies with above-average ESG profiles, are doing well. Even more popular, however, are MSCI World and MSCI ACWI ETFs - often with an ESG focus. The trader reports high inflows for the MSCI ACWI ESG Universal Low Carbon Select 5% Issuer Capped (<IE00BDQZMX67>), for example, but also for the classic iShares Core MSCI World (IE00B4L5Y983). Société Générale clients are also mostly interested in global equity ETFs, such as iShares Core MSCI World and Xtrackers MSCI World ESG (IE00BZ02LR44).
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Further shifts into ESG ETFs
In eurozone equities, Heuclin says inflows and outflows are balanced, while Dürr notes a buyer overhang. "However, we are clearly seeing the switch into ESG ETFs," notes Heuclin. Favorites include the Lyxor Net Zero 2050 S&P Eurozone Climate PAB (LU2195226068) and the Amundi Index MSCI Europe SRI (LU1861137484).
Heuclin
Schröer of Lang & Schwarz also observes a lot of buying for an exotic: the Franklin FTSE India (IE00BHZRQZ17). Since the beginning of the year, it has gained 40 percent. On the other hand, investors no longer want to know much about minimum volatility ETFs: The iShares Edge MSCI World Minimum Volatility (IE00B8FHGS14) was thrown out of portfolios in a big way, as Heuclin reports.
Tech rally continues
Much of the sector ETF trading continues to revolve around tech index funds. For example, Xtrackers MSCI World Information Technology (IE00BM67HT60) is currently in strong demand. The price has risen 37 percent since the beginning of the year and 36 percent over three years. Dürr also reports high turnover for healthcare stocks (<E00BM67HK77>), with more buying than selling, and for gold producer stocks (<LU0488317701>), with more selling. "Financials and energy stocks are not quite in the spotlight anymore."
According to Dürr, the iShares Global Clean Energy (IE00B1XNHC34) is also ending up in portfolios more frequently again. The ETF, which was so successful in 2020 and caused investors losses for a long time this year, now seems to have caught on. Lyxor MSCI Future Mobility ESG Filtered (LU2023679090) is also very popular. Launched in April 2020, the ETF is up 49 percent this year. It tracks companies expected to "generate significant revenues from areas such as electric vehicles and components, autonomous driving, new passenger and freight transportation methods, batteries and shared mobility," according to Lyxor.
"Interest in Asian government bonds"
There is currently no clear trend in bond ETF trading. "China's government bonds no longer appear in our turnover top ten," Dürr reports. "Inflation-linked bonds (LU1390062245) also don't seem to be the big issue anymore." At most, he says, interest in Asian government bonds in local currencies (IE00B6QGFW01) is noticeable. According to BNP Paribas, European (IE00B66F4759) and U.S. high yield bonds (IE00B4PY7Y77) are in demand, but also government bonds from the eurozone (LU0290355717) or emerging markets (IE00B2NPKV68).
Cryptos: Extremely high turnover
Very much traded are currently cryptocurrency ETNs, as Schröer reports. Bitcoin had climbed to a new all-time high of $68,764 last Wednesday, but today the price is collapsing to below $60,000. "The volatility is extremely high, and with it the trading volume." This affects not only bitcoin, but all cryptocurrencies, he said. According to Schröer, cryptocurrency baskets such as the 21Shares Crypto Basket-ETN (CH0445689208) are particularly strong in terms of turnover.
| Shares | |
| USA | Buys |
| World | Buys |
| Europe | Buys/Sales |
| India | Buys |
| Industries | |
| Technology | Buys |
| Subjects | |
| Renewable energy | Buys |
| Mobility of the future | Buys |
| Bonds | |
| Highyield | Buys |
| EM Asia | Buys |
| Cryptocurrency-ETNs | Buys/Sales |
by Anna-Maria Borse, 16 November 2021, © Deutsche Börse AG
Deutsche Börse 
