ETFs: "Profits are reinvested"

New record highs on many stock markets are driving brisk ETF trading. Global index funds are in demand, while investors are increasingly taking profits on technology ETFs. Bond ETFs continue to see strong inflows.

June 2, 2026. FRANKFURT (Deutsche Börse). Stock prices have surged in some segments over the past two months. The U.S. markets, in particular, have benefited from this trend. The new all-time highs reached by many indices appear to be motivating many investors to make new investments. “With increased trading volume, we saw about 60 percent more buys than sells,” reports Holger Heinrich, an ETF trader at Baader Bank AG.

Global ETFs remain the top choice

Global index funds are currently at the top of the shopping lists. Heinrich cites the HSBC Developed World Screened Equity (IE00BKY59K37) and the WisdomTree Global Value (IE000D1017N2). Peter Bösenberg of Société Générale notes increased buying of the iShares Core MSCI World (IE00B4L5Y983) and the Vanguard FTSE All-World (IE00BK5BQT80). All four ETFs are trading at all-time highs following a very robust recent performance. The same applies to the UBS MSCI World Socially Responsible UCITS ETF (IE00BK72HM96), which, according to Heinrich, has recently seen reduced holdings in portfolios.

In the U.S., the standard indices that have performed very well are being sold more frequently, as Heinrich reports with regard to the iShares MSCI USA Screened (IE00BFNM3H51). Instead, specialized investment strategies are in demand, such as those in the JPMorgan Nasdaq Equity Premium Income Active (IE000N6I8IU2) and the Amundi MSCI USA SRI Climate Paris Aligned (IE000R85HL30).

Focus on the UK and Japan

According to the broker, British blue-chip stocks are the main targets for buying in Europe. Specifically, investors are buying the Xtrackers FTSE 100 (LU0838780707). In contrast, they are selling the Xtrackers FTSE 100 Short Daily Swap (LU0328473581), which bets on falling prices, is being sold. For Asia, Bösenberg reports increased investments in the Xtrackers MSCI Japan (LU0274209740). The more broadly diversified HSBC MSCI Emerging Markets (IE000KCS7J59), on the other hand, is being sold off, as Ivo Orlemann of ICF Bank explains.

Profit-taking in technology stocks

Profit-taking is on the rise in trading of sector ETFs, particularly in technology stocks that have performed very well. Bösenberg observes selling of the Xtrackers MSCI World Information Technology (IE00BM67HT60) and the Xtrackers Artificial Intelligence & Big Data (IE00BGV5VN51). Both index funds have been among investors’ top favorites for many months. That has paid off. Since the end of March alone, the ETFs have posted price gains of around 50 percent.

Luxury goods stocks are currently in higher demand via the Amundi Global Luxury (LU1681048630), as well as the consumer staples sector, where Bösenberg mentions the Xtrackers MSCI World Consumer Staples (IE00BM67HN09). Orlemann reports continued buying in the VanEck Space Innovators (IE000YU9K6K2).

Bond ETFs remain in demand

The very robust demand for bond ETFs remains striking, with these funds recording sustained inflows worldwide in recent weeks. Many investors likely took advantage of the temporary sharp rise in capital market yields to enter the market. Although yields have recently fallen again, Bösenberg continues to report strong demand for fixed-income products. The Vanguard Global Aggregate Bond EUR Hedged Accumulating (IE00BG47KH54) and the iShares Global Aggregate Bond ESG EUR Hedged (IE000APK27S2) are the most frequently traded. Both ETFs invest globally in corporate and government bonds.