iShares MSCI Germany Small-Cap ETF Price & Performance (EWGS)

A surge of $10.6 billion into European equity ETFs in Q1 2025 marks a sharp reversal from prior outflows, with Germany drawing over $1 billion alone. The shift comes amid U.S. policy uncertainty and trade tensions, as investors rediscover international equities for diversification and growth potential.12

European indexes have outperformed, with Germany leading at a 12.5% year-to-date gain. Defensive sectors like consumer staples and utilities saw inflows as global investors sought stability outside the U.S. Heightened volatility and tariff shocks have driven increased trading in European futures and options this April.3

ETFs tracking Germany and Spain have surged 17.2% and 24.6% respectively in 2025, far outstripping the S&P 500’s nearly 8% decline. The trend reflects a broader pivot toward global diversification, as investors respond to U.S. trade uncertainty and seek growth in robust European markets.4