ETFs: New highs, new inflows

Standard ETFs remain in demand, with US and global equities doing particularly well. Tech stocks, especially those related to artificial intelligence, continue to be the big hit. However, there is also initial profit-taking.

20 June 2023. FRANKFURT (Börse Frankfurt). The new DAX all-time high seems to be supporting the buying mood in ETF trading. "We are seeing significantly more buying than selling, though turnover is only average," reports Frank Mohr of Société Générale. "Standard indices such as the MSCI World and the S&P 500 remain in demand," notes Fabian Wörndl of Lang & Schwarz.

Last week, the DAX climbed to a new record high of just under 16,428 points. On Tuesday afternoon, however, it is again only 16,100 points - without concrete news. S&P 500 and Nasdaq had not reached new all-time highs last week, but annual highs. For today, the U.S. markets are also expected weaker after the long weekend.

Cashing in on DAX trackers?

U.S. and global equities each accounted for about a third of turnover last week, Mohr notes, with a clear buyer overhang. Shopping lists include iShares ETFs on the MSCI World (IE00B4L5Y983), the S&P 500 (IE00B5BMR087) and the Nasdaq 100 (DE000A0F5UF5). Also popular: the Amundi index MSCI World SRI PAB (<LU1861134382>). It tracks companies that meet high ESG standards and fulfill the requirements of the EU benchmark regulation EU PAB. European stocks are also bought, for example with the Deka MSCI Europe (DE000ETFL284), while German stocks tend to be sold (DE0005933931).

Lang & Schwarz's Wörndl sees high inflows into Amundi Prime Global (<LU2089238203>). The offers access to large- and mid-cap companies from 23 developed countries and is part of Amundi's low-cost Prime series, with management fees of just 5 basis points a year.

Wörndl registers larger sales for Asian and especially Chinese stocks, for example for the Xtrackers CSI 300 Swap (LU0779800910). One possible reason: the sluggish recovery of the Chinese economy, which weighs on China's stock market. Most recently, Goldman Sachs cut its forecast for China's GDP growth this year from 6 percent to 5.4 percent.

In addition, the tech industry continues to attract a lot of attention. "The topics of AI and big data are very much in vogue," says Wörndl. Investors are betting on Xtrackers Artificial Intelligence & Big Data (IE00BGV5VN51), for example. Mohr also sees sales of technology ETFs, such as iShares Digital Security (IE00BG0J4C88).

Also being shed, he said, is iShares Ageing Population (IE00BYZK4669), a cross-sector themed ETF.

Money market tracker very popular

Top sellers in bond ETF trading remain money market products such as Lyxor Fed Funds US Dollar Cash (LU2090062352). "They're sometimes bought, sometimes sold," notes Mohr. "Corporate bonds lack a clear picture." Mohr sees downside for the iShares Core Euro Corp Bond (IE00B3F81R35).

by: Anna-Maria Borse, 20 June 2023, © Deutsche Börse