iShares MSCI Europe Small-Cap ETF Price & Performance (IEUS)

European small-cap ETFs are seeing renewed investor interest, with funds like the iShares MSCI Europe Small-Cap ETF gaining traction as capital moves from U.S. equities to Europe. Investors are seeking diversification and safety amid ongoing trade tensions and geopolitical uncertainty, favoring defensive sectors and European markets over U.S. tech and growth stocks.12

Investors poured a record $11 billion into Europe-focused ETFs in the first quarter, a sevenfold increase from last year. The shift is driven by deregulation, fiscal stimulus in Germany, and increased defense spending, making European equities a bright spot amid global market volatility and U.S. policy uncertainty.34

Thornburg Investment Management’s recent launch of international equity ETFs has quickly attracted $100 million in assets. The Thornburg International Equity ETF outperformed the iShares MSCI EAFE ETF in March, reflecting investor appetite for actively managed, diversified exposure to developed markets outside the U.S. amid a turbulent global landscape.52