iShares MSCI Europe Financials ETF Price & Performance (EUFN)

European financial ETFs have outperformed tech stocks by nearly 34% since the start of 2025. This shift highlights a reversal of early-year trends, with investors moving away from technology and into financials. Analysts suggest geopolitical factors and fiscal policy changes in Europe have bolstered the region's financial sector.12

European equity ETFs are outpacing U.S. counterparts in 2025, with top funds like iShares MSCI Poland ETF gaining 25% YTD. Factors such as easing inflation and robust GDP growth in key economies like Spain and the Netherlands have contributed to this performance, solidifying Europe's investment appeal.34

While European ETFs outperform U.S. markets this year, American investors continue to favor domestic ETFs, with $48.1 billion in inflows for February alone. In contrast, Europe-domiciled funds saw significant outflows from U.S. equities. Diverging monetary policies and geopolitical shifts are influencing these investment trends.45