Investors pour record $93bn into European ETFs, steering clear of US funds instead
In 2025, a shitload of investors is dumping greenbacks into European exchange-traded funds like never before, while ditching their US assets left and right.
Trump's idiotic tariffs on foreign imports have sent Wall Street scrambling, with investors repositioning their investments away from the good ol' US of A.
During the beginning of the year, the European ETF market raked in a staggering $93 billion in net new assets as Trump threw threats and later imposed tariffs on trade partners, according to Invesco's figures. That's more dough than ever before, even surpassing the previous record set in the last quarter of 2024, when Trump won the US election.
Currently, tariffs stand at 10%, but Trump's slammed the brakes on reciprocal tariffs for a 90-day pause starting on April 9.
Gary Buxton, head of EMEA ETFs at Invesco, isn't shy about why smart-ass investors are pumping cash into Europe: "The valuation case for European equities remains solid, and rising concerns over concentration risk in global and US indices might make investors eager to diversify their portfolios with European investments."
Europe-focused ETFs have seen record-breaking inflows, with an impressive $19.4 billion pouring in during the first quarter – making up a full fifth of new assets in that timeframe.
Now, you might be wondering why the hell everyone's rushing to Europe. Well, it's not just the attractive valuations and strengthening European economy that's got investors salivating. Buxton also highlighted gold as a hot commodity: "Gold has proven its low correlation with equities and other risk assets, and tends to hold up well during times of increased equity market volatility and uncertainty." In other words, gold's a 'safe haven' asset that investors flip to when the markets go tits up. Gold ETPs even saw inflows over the past four months, with returns of 19% in the first quarter.
Buxton sums it up: "As long as shit keeps hitting the fan, gold will remain a desirable investment. With its historically low correlation with equities and ability to perform well during periods of market uncertainty, the case for gold remains strong."
So there you have it, folks. If you wanna play the markets like a boss, remember: Europe's the place to be in 2025 – particularly if you've got a soft spot for shiny, yellow metal.
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- Investors are dumping greenbacks into European stocks and exchange-traded funds in 2025, as they're abandoning US assets due to Trump's tariffs.
- The European ETF market saw record-breaking net new assets in the beginning of the year, even surpassing a previous record set in the last quarter of 2024, as a result of tariffs and trading threats by Trump.
- The tariffs currently stand at 10%, but Trump has put a 90-day pause on reciprocal tariffs, starting from April 9.
- Gary Buxton, head of EMEA ETFs at Invesco, pointed out the solid valuation case for European equities as one reason for the influx of investments.
- Europe-focused ETFs gained an impressive $19.4 billion in the first quarter of 2025, making up a fifth of new assets in that timeframe, and gold ETPs also saw inflows during the same period with returns of 19% in the first quarter.
