Frankfurt (Deutsche-Boerse AG)-In the run-up to yesterday’s sale at many tech shares, stocks were bought vigorously from stock ETFs at the Frankfurt stock exchange. Particularly asked: US index fund. There are rain trade on both sides in the area of crypto ETNs.
January 28, 2025. In the past week, when the “AI shock” from China was not yet foreseeable, the investors continued to access the ETFs traded on the Frankfurt stock exchange. “Two thirds of the sales are eliminated,” says Frank Mohr from the Société Générale. Holger Heinrich von der Baader Bank reports “50 percent more purchases than sales”, which could be due to the positive stock market development until Friday. The focus of purchase is particularly evident in “World Products” such as the Xtrackers MSCI World Hedged (IE000ONQ3X90), the Ishares Core MSCI World Hedged (IE00BKBF6H24) and the L&G Kommer Multifactor Equity (IE000FPWSL69).
“Get out of the ESG products”
In addition to the almost traditionally strong interest in global index trackers, Mohr finds an above-average demand for US stocks. “The US index funds are far ahead with a 40 percent share and this time there are hardly any profit treatment.” The Ishares S&P 500 (IE00B5BMR087) and the Amundi Nasdaq (LU1681038599) are particularly bought strongly. Heinrich also observes a very special trend at the US index fund: “Interestingly, the exchange goes out of ESG products and purely in non-ESG products”. While the Ishares MSCI USA EUR HEDGED (IE00BZ173V67) and the ISHARES MSCI USA ESG Enhanced (IE00BHzPJ890) are more sold, investors at the Investco S & P 500 EUR (IE00brkwl70) and the UBS S & P 500 (IE00B7K9397)
European stock ETFs are “despite the recently strong performance, not so much in demand”, as Heinrich reports. Mohr also explains that in Europe and Germany there is “much less going on”. There are occasional engagements on the Xtrackers Euro Stoxx 50 (LU0274211217), but there are also some taxes in index funds.
Technology and armor remain wanted
The tech trackers still dominate the industry ETFs. The Ishares S&P 500 IT Sector (IE00B3WJKG14) and the First Trust Nasdaq Cybersecurity (IE00BF16M727) are particularly searched for. It will be exciting to what extent the sale in this segment will influence the sales behavior in this segment, triggered by the AI success of the Chinese start-ups Deepseek. Ivo Orlemann, dealer at ICF Bank, sees “continued interest in the potential wars of war” away from the tech industry. We are looking for the Vaneck Defense (IE000YYE6WK5) and the Vaneck Uranium and Nuclear Technologies (IE000M7V94E1).
Money market ETFs as a “modern clearing account”
In the area of bonds, there is a lot of activity on pages on the “overnight ETFs”. “It is traded diligently to park cash positions and then invest the money again,” reports Mohr of constant purchases and sales for the products of Amundi (Fr0010510800) and Xtrackers (LU0290358497). “Customers want to take a little more here than with the overnight money”. The Ishares USD Treasury Bond 1-3yr (IE00BDFK1573), which is investing in short-running US bonds, is also bought strongly.
Strong purchases from Bitcoin-ETNS
There is really a lot going on in the area of crypto ETNs. According to Orlemann, “permanent burner” such as the Vaneck Bitcoin (DE000A28M8D0) and the Wisdomtree Physical Bitcoin (GB00BJYDH287) are “traded in both directions”. In contrast, there are “mostly returns” in the Solana Etns of Wisdomtree (GB00BNGJ9G01) and 21shares Solana (CH1114873776). The Ripple ETN of 21Shares (CH0454664043) is also “more sold”. Heinrich also sees a “lively trade in the course of the ongoing euphoria” in the crypto segment. So much is about the “common coin ETFs”. For the Bitcoin, the dealer mentions the products of Wisdomtree (GB00BJYDH287); Bitwise (DE000A27Z304) and Coinshares (GB00BLD4ZL17).
By Thomas Koch, January 28, 2025, © Deutsche Börse AG
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