iShares Core S&P U.S. Value ETF Price & Performance (IUSV)

The largest Europe-domiciled ETFs had varied results last month. The iShares Core MSCI EM IMI ETF led with a 1.13% loss, while the iShares MSCI USA ESG Enhanced ETF lagged, dropping 3.20%. Notably, the Vanguard FTSE All-World ETF outperformed its peers in the global category with a smaller 1.89% decline.1

Investor sentiment has shifted sharply, with the Fear & Greed Index at its lowest in 12 months. The VIX surged 20% in February, reflecting heightened market uncertainty. Contributing factors include recent tariffs and concerns over persistent inflation, delaying expected Federal Reserve rate cuts until late 2025.2

The global ETF industry reached a record $15.5 trillion in assets by February's end, driven by $61.67 billion in net inflows. The SPDR S&P 500 ETF Trust led with $8.67 billion in new assets. Equity ETFs dominated inflows, reflecting investor preference amid ongoing market shifts.3