New #1: This company is more valuable than Apple

The largest oil company in the world, Saudi Aramco, replaced the technology group Apple on May 11, 2022 as the most valuable company in the world. While the share price of the group based in Saudi Arabia has benefited from the high oil prices in recent weeks, the iPhone manufacturer’s paper has come under increasing pressure due to rising capital market interest rates, supply bottlenecks and growth concerns. The result: Apple shares fell again on May 11, 2022 by 5 percent to their lowest level since the end of October 2021.

Investors are selling technology stocks

Saudi Aramco’s price on its home exchange, Tadawul in Riyadh, had risen by more than 17 percent since mid-March 2022. The Apple price, on the other hand, has lost more than 18 percent since the end of March. The prospect of rising interest rates caused investors to sell technology stocks in particular. Because in the long phase of cheap money, investors had increasingly relied on high-growth tech companies. Now, however, interest rates are likely to rise sharply in view of the high inflation, which could mean that Apple, Amazon, Microsoft & Co. are clearly overvalued.

ETF savings plan providers in comparison

Trade Republic

Smartbroker

comdirect

Flatex

Consorsbank

ING

Onvista Bank

Scalable Capital

S Broker

DKB

Possible execution days

Reinvestment of Dividends

Direct debit from third-party account

Possible ETFs per savings plan

Web Application / Trading App

  • intuitive app, modern desktop offering
  • 10 euros up to a maximum of 5000 euros
  • Fortnightly, monthly, quarterly
  • many savings plans, all permanently free of charge
  • new on the market, therefore modern and fresh design
  • Free custody account management, but negative interest (0.5 percent) on the clearing account if more than 15 percent of the investment is available as cash over the quarter
  • 280 ETFs eligible for savings plans from Amundi, Lyxor and Xtrackers free of charge until December 31, 2022, 351 ETFs eligible for savings plans with 0.2 percent (at least EUR 0.80) per execution
  • 25 euros up to a maximum of 3,000 euros
  • monthly, bimonthly, quarterly, semi-annually
  • some savings plans free of charge during the promotion period, low savings plan fees
  • Fees for clearing account (0.5 percent per year) as soon as the total exceeds 15 percent of the deposit value
  • The app and desktop version are understandable and seem to be made of one piece
  • when taking out a savings plan: none
  • 140 ETFs from Amundi, Franklin Templeton, iShares, Lyxor, Vaneck, Xtrackers free of charge in the offer period until December 31, 2021, otherwise 1.5 percent of the savings rate
  • 25 euros up to a maximum of 10,000 euros
  • 1st, 7th, 15th, 23rd of the month
  • monthly, bimonthly, quarterly
  • VL savings possible, up to 10 ETFs per savings plan
  • plain and clear
  • no custody fee, negative credit interest of 0.5 percent on the clearing account
  • monthly, quarterly, semi-annually, annually
  • many savings plans, all permanently free of charge
  • Negative interest on clearing account
  • Desktop application easy to understand, app a little confusing because it is not a pure trading app
  • around 270 ETF savings plans at zero cost (partly limited until December 31, 2022), all other ETF savings plans: 1.5 percent per savings rate
  • monthly, bimonthly, quarterly, semi-annually
  • some savings plans free of charge during the promotional period
  • understandable texts, airy design
  • monthly, bimonthly, quarterly
  • all savings plans permanently free of charge
  • somewhat dusty design, since the owner Commerzbank looks much fresher
  • no custody fee, negative credit interest of 0.5 percent for more than 250,000 euros on the clearing account
  • monthly, quarterly
  • few ETF savings plans
  • manageable even for beginners
  • Free model: none, Prime model: 35.88 per year, Prime Flex model: 59.99 per year
  • all ETF savings plans permanently free of charge
  • 1 euro to a maximum of 5,000 euros
  • 1st, 4th, 7th, 10th, 13th, 16th, 19th, 22nd or 25th of the month
  • monthly, bimonthly or quarterly
  • many savings plans, all of which are permanently free of charge
  • dispenses with design finesse, the focus is on the information
  • when taking out a savings plan: none
  • around 110 savings plans from Deka, UBS, Xtrackers currently free of charge up to a savings rate of 500 euros, all others 2.5 percent per savings plan rate
  • monthly, bimonthly, quarterly, semiannually, annually
  • some action savings plans free of charge
  • around 110 savings plans from Amundi, Lyxor, Vanguard for 0.49 euros per savings rate in the promotion period until 13.12.21, otherwise 1.50 euros per savings rate
  • monthly, bimonthly, quarterly
  • some savings plans free of charge during the promotional period

Apple now number 2

The shares of Saudi Aramco, which went public at the end of 2019, had recently reached a record high. The company currently has a market capitalization equivalent to $2.43 trillion. In doing so, they left Apple behind for the first time since 2020. The company from Cupertino in California is only worth 2.37 trillion US dollars (approx. 2.62 trillion euros) with the most recent loss of a good 5 percent. However, only a small proportion of Aramco shares are freely tradable, and the vast majority are in state hands.

Rising interest rates cause panic selling

The US Federal Reserve is likely to raise interest rates by a further 1.5 percentage points in 2022. That and the prospect of an ongoing war in Ukraine mean that the big tech companies cannot be expected to return to their former strength anytime soon, said Tim Ghriskey, portfolio strategist at Ingalls & Snyder. He spoke of “panic selling” at a number of technology stocks and other highly rated companies. Investors are likely to reinvest the funds that are freed up in the process, not least in energy stocks whose growth prospects are rosy. “Companies like Saudi Aramco benefit considerably from this mixed situation,” says the expert. (With material from the dpa.)

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