Background of Demand
Growth of European and German ETFs
In recent months, a clear trend has emerged: Investors are increasingly turning to European, particularly German stocks. DAX ETFs, which had long been less in focus, are now in demand worldwide. Other European indices like the Euro Stoxx 50 are also benefiting from this trend. In contrast, US stocks are losing attractiveness – at least in relative terms.
Market Reactions
The recent tariff threat from the US President led to only a short-term setback in the stock market. By the next trading day, the DAX had recovered and reached new highs (e.g., 24,230 points in mid-May 2025). This underscores the robustness of the German market in volatile times.
Reasons for the Rising Demand
- Attractive Valuations: German companies often offer more attractive valuations compared to US values.
- Stability: The German economy is regarded as stable and crisis-resistant.
- Diversification: Many investors are looking for ways to diversify their portfolios away from the heavily weighted US market.
- Defense Sector: Particularly defense ETFs are currently in high demand, which can be attributed to geopolitical uncertainties.
Importance for Private Investors
For private investors, ETFs on German stocks offer numerous advantages:
- Cost-effective Access: With just a few clicks, they can cost-effectively invest in broadly diversified indices.
- Flexibility: ETFs allow for flexible entry into various sectors and markets.
- Transparency & Liquidity: The exchange-traded funds are transparently structured and can be traded at any time.
- Potential for Growth: The positive development of German companies can be directly leveraged through ETF investments.
Examples of Popular DAX/Euro Stoxx 50 ETFs
| Name/ISIN | Index | Issuer |
|---|---|---|
| iShares DE0005933931 | DAX | iShares |
| Xtrackers LU0274211480 | DAX | Xtrackers |
| iShares IE00B53L3W79 | Euro Stoxx 50 | iShares |
| Amundi LU1681047236 | Euro Stoxx 50 | Amundi |
These products currently belong to the most traded ETFs on German or European indices.
Outlook
The trend towards European – especially German – stocks remains intact, even though volumes are slightly declining compared to the previous year. This still offers small investors good opportunities to participate in the economic upturn in Germany and to spread risk within a globally diversified portfolio.
Overall, the development shows: German stocks in the form of ETFs are in demand worldwide – a positive signal for investors interested in stable growth markets outside the USA.