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European Investor Flows Reveal a Pickier Mindset with ETF Plays

European Investor Flows Reveal a Pickier Mindset with ETF Plays December 23, 2020 European exchange traded fund investors dumped S&P 500 exposure for the more technology-heavy Nasdaq-100 and a number of sector picks, like those that track so-called sustainable indices. According to Invesco data, in the six years ended 2019, 59% of the $91 billion of net new money European ETF investors pumped into U.S. equities went into those that tracked the S&P 500, the Financial Times reports. However, we witnessed a shift in preferences over the first 11 months of the year as Europeans yanked a net $7.8 billion from ETFs tracking the S&P 500, but they funneled $17 billion into ETFs based on other U.S. equity indices.

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