US investors poured a record $10.6 billion into exchange-traded funds (ETFs) focused on European equities in the first quarter of this year, according to BlackRock.
This figure is seven times the amount of investments made in the same period last year. The main factor contributing to the growing interest in European markets has been the increased uncertainty caused by US President Donald Trump's trade policies.
Over the past five years, there has been an outflow of funds from European ETFs, but now investors are turning their attention back to the region's securities. Possible reasons include active deregulation and optimistic statements from Germany on fiscal measures.
Particularly noteworthy is the growth of investments in funds related to the defense sector. However, some experts quoted by Reuters warn that this increase may be temporary.