The recent cost reduction implemented nearly a year ago has significantly boosted demand for US index funds. Bond ETFs are also gaining popularity, while interest in actively managed ETFs is rising from a previously low level.
Positive Sentiment Among Investors
As quarterly reporting begins in the US, optimism is high among investors in ETF trading. Holger Heinrich from Baader Bank noted, “With equity markets holding up well, we experienced about 70% more buys than sells, despite slightly lower turnover.” Frank Mohr from Société Générale echoed this sentiment, describing the past week as “pretty good” and indicating a continued buying trend, although it is not as strong as in previous months.
Strong Interest in Global and US Indices
Trading remains heavily influenced by strong interest in global and American stock indices, which represent 60% of Société Générale’s total turnover. Mohr suggests that this trend may be driven by a rising demand for savings plans, commonly utilized to enhance retirement savings. “Broadly diversified indices are particularly popular in this context,” he explained.
Notably, the iShares Core MSCI World (IE00B4L5Y983) is seeing significant buying interest. Heinrich also reported purchases of the Xtrackers MSCI World ex USA (IE0006WW1TQ4) and the Amundi Prime All Country World (IE0003XJA0J9), highlighting the growing appeal of these investment options.
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