European ETFs See Record $93B Inflows in Q1 2025 as Investors Shift from US Exposure
European exchange-traded funds attracted a record $93 billion in net inflows during the first quarter of 2025, surpassing the previous high of $91 billion set in late 2024. Total assets under management reached $2.38 trillion despite muted equity returns, buoyed by rising commodity prices and fixed income gains.
Equity products dominated inflows at 80% of the total, mirroring 2024 trends. But a notable rotation emerged—investors favored European exposures over US equities. Europe-focused ETFs drew $19.4 billion, representing one-fifth of all new assets, with broad European equity products accounting for $11.4 billion alone.