ETF: The end of a lackluster summer: A perspective from German analysts.

DAX, Dow Jones, and even gold have reached all-time highs, but the economy is not improving. Traditionally, the beginning of September, which is a difficult time for the stock market, is seeing cautiousness.

September 3rd, Frankfurt (stock exchange).

In early August, due to the market's intense fluctuations, the summer break was canceled and September has arrived. 'It's very quiet,' explains Ivo Orlemann, who trades ETFs at ICF Bank. Andreas Schreuer from Lang & Schwarz also reports low trading volume. DAX reached just under 18,991 points on Friday and updated the all-time high to 18,850 points at lunchtime on Tuesday. Stoxx Europe and Dow Jones also set new records.

ICF Bank is focusing on large-cap stock indexes such as Deka DAX (DE000ETFL011), Deka MSCI World (DE000ETFL508), and Deka Euro Stoxx ex Financials Dividend+ (DE000ETFL482). The latter excludes financial institutions and focuses on companies with the highest dividend yields in the eurozone. In addition, WisdomTree DAX 3x Daily Short (IE00B8GKPP93) is also popular, tracking the DAX with a 3x leverage in reverse.

Mr. Schreuer has been buying a lot of MSCI World ETFs, but he also buys Indian stocks, many of which are Franklin FTSE India (IE00BHZRQZ17). MSCI Emerging Markets ETFs were not very popular, but MSCI EM Asia Tracker was highly regarded. The price of Franklin FTSE India has risen by 20% year-to-date and by about 13% in the past three years.

According to Mr. Orleman, there is always demand when trading sector ETFs like L&G Hydrogen Economy (IE00BMYDM794). Hydrogen ETF.when trading sector ETFsthere is always demandOn the other hand, the popularVanEck Defense (IE000YYE6WK5) continues to set record highscontinues to set record highsThis year alone,has seen a 35% increase."With continued global uncertainty, security and defense issues have once again become one of the most important concerns for governments around the world," explained VanEck, the issuer. Launched in March 2023, this ETF has now exceeded 1 billion US dollars and is investing in major defense technology companies, leading cybersecurity firms, and defense-related service providers. The current focus is on,palantir technologies inc、Raytheon、Booz Allen Hamilton.

Another ETF in this sector is HANetf's Future of Defense (IE000OJ5TQP4). This ETF, which will start in June 2023 with a total investment of $0.475 billion, provides access to 41 companies in the defense sector. The current focus is on BAE Systems, Fortinet, and Northrop Grumman. The ETF has risen 26% year-to-date.BAE Systems、Fortinet、Northrop GrummanYear-to-date, the ETF has risen 26%.

In commodity ETF trading, Orlemann reported that trading volume for gold and silver ETFs was low. There was some trading in Invesco Physical Gold (IE00B579F325), WisdomTree Physical Silver (JE00B1VS3333), and WisdomTree Silver 3x Daily Leveraged (IE00B7XD2195). The price of gold hit a record high of $2,531 last week, then retraced to $2,504 on Tuesday afternoon. While the silver price followed, it remained below its May peak.

Trading of cryptocurrency ETNs has also calmed down. Schreier commented that 'dips are not being used for market entry' and reported on purchases and sales. Orleman is also observing two-way business. Bitcoin fell below the $60,000 mark and was trading at $58,800 during Tuesday lunchtime.