Despite some heavy price losses, including in the tech sector, the ETF market is stable. Some traders are seeing a selling overhang, but most are seeing more buying. Bitcoin and gold price trackers continue to see a lot of activity - in both directions.
23 April 2024. FRANKFURT (Börse Frankfurt). The sustained price losses since the end of March have now caused at least some people to get cold feet. The first are selling their investments. "With share indices falling significantly, we had around 15 percent more sales than purchases - with noticeably higher turnover," reports Holger Heinrich from Baader Bank. Leo Puschmann from Lang & Schwarz only saw individual profit-taking, for example on Friday when the Nvidia share price slipped sharply. "Overall, however, purchases predominate, including technology ETFs." Ivo Orlemann from ICF Bank also sees no "massive selling pressure". Last week, the DAX fell to around 17,700 points, but by midday on Tuesday it was looking better again at just under 18,000 points. However, the previous all-time high of 18,567 points remains a long way off. The Nasdaq 100 has lost over 5 percent since its most recent high. Heinrich cannot identify any special features in the World products: "It's mainly about global indices in different variants," he explains, citing the Xtrackers MSCI AC World ESG Screened (IE00BGHQ0G80) and the currency-hedged Xtrackers MSCI World Swap Euro Hedged (LU0659579733) as examples.
"Wide range of US equities"
As far as US equities are concerned, Heinrich speaks of a "wide range", including dividend ETFs (IE00B979GK47) as well as quality income (IE00BYXVGY31) and low volatility products (IE00B802KR88). Puschmann sees the usual interest in S&P 500 and Nasdaq trackers, with occasional profit-taking. ICF is also seeing some turnover in leveraged Nasdaq ETNs, such as the WisdomTree Nasdaq 100 3x Daily Short (IE00BLRPRJ20). According to Heinrich, most European equities revolve around large indices such as the Stoxx Europe 600 (DE000A2QP4B6) and Stoxx Europe 50 (DE0005933949) and their ESG variants. Orlemann reports good turnover in leveraged, inverse DAX ETNs such as the WisdomTree DAX 3x Daily Short (IE00B8GKPP93).
Indian equities remain popular
According to Puschmann, inflows into Indian equities are also continuing, for example with the iShares MSCI India (IE00BZCQB185), which is now worth almost EUR 4 billion. Since the beginning of the year, the share price has risen by just under 11 percent, and over the past three years it is up 18 percent per year. Heavyweights include companies such as Reliance Industries, the banks ICICI and HDFC as well as Infosys and Tata Consultancy.
Holding on to tech investments
Despite setbacks on the Nasdaq, tech stocks remain in demand in trading with sector ETFs, Puschmann sees predominantly purchases of the iShares S&P 500 Information Technology (IE00B3WJKG14). "Of the sectors, it was the industrial sector that stood out this time," reports Heinrich from Baader Bank. In terms of sector ETFs, copper producers, semiconductors and banking ETFs have performed particularly well so far this year, as the list from the ETF portal justETF shows. Top performers are the HANetf Sprott Copper Miners ESG Screened (IE000IQQEL77) and the Global X Copper Miners (IE0003Z9E2Y3) with price gains of 20% and 23% respectively. Both are benefiting from the sharp rise in copper prices. Semiconductor ETFs such as the Amundi MSCI Semiconductors ESG Screened (<SIN LU1900066033>), which gained 22%, and banking ETFs such as the Amundi Euro Stoxxx Banks (LU1829219390), which gained 21%, also performed very well.
Read more on justetf.com
Since last Thursday, active ETFs from ARK Invest have been tradable via Xetra and Börse Frankfurt for the first time: ARK Innovation (IE000GA3D489), ARK Artificial Intelligence & Robotics (IE0003A512E4) and ARK Genomic Revolution (IE000O5M6XO1). US star investor Cathie Wood is behind ARK Invest. Her hobbyhorse: disruptive technologies. The move to launch European versions of the US ETFs was expected following the takeover of Rize ETF by ARK Invest in September 2023. However, there has been some criticism of the risky strategy: "The fund is more vulnerable than visionary," writes Morningstar strategist Robby Greengold. The results in the start-up scene varied "from exceptional to terrible". Successful navigation requires a talent for prediction that ARK Investment Management does not possess.
Read more on morningstar.de.
Still a lot going on in Bitcoin and gold price trackers
While crypto ETN trading at Lang & Schwarz has quietened down somewhat according to Puschmann, Orlemann from ICF is still reporting high turnover. "Cryptos are our main topic." Orlemann reports high turnover with buys and sells for Bitcoin trackers from VanEck and WisdomTree (DE000A28M8D0, GB00BJYDH287), but also for short Bitcoin products (CH0514065058). Solana's sharp price losses also led to high trading volumes in Solana ETNs (CH1114873776, GB00BNGJ9G01). Bitcoin has recovered somewhat from the setback before the Bitcoin halving last weekend and is currently trading at USD 66,125. At its all-time high in mid-March, it was USD 73,559. According to Orlemann, the sharp rise in the price of gold to a new all-time high of USD 2,430 last week is also stimulating trading in gold ETCs (JE00B588CD74, IE00B579F325). He is seeing inflows and outflows. There is also a lot going on in leveraged products, such as the WisdomTree Gold 3x Daily Leveraged (IE00B8HGT870) and the WisdomTree Gold 3x Daily Short (IE00B6X4BP29).
From Anna-Maria Borse, 23. April 2024 © Deutsche Börse AG
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