Vanguard Short-Term Treasury Index Fund Price & Performance (VGSH)

February saw mixed results for Europe-domiciled ETFs. Notable performers include the iShares Core MSCI World ETF, which lost 2.03%, outperforming its category’s average decline of 2.57%. Meanwhile, the Vanguard FTSE All-World ETF fell 1.89%, also beating its benchmark. These funds highlight investor interest in global diversification despite market turbulence.1

Investor confidence has taken a hit in early 2025, with the Fear & Greed Index plunging into "Extreme Fear" territory. The VIX surged 20% in February, reflecting heightened market volatility. Additionally, the Buffett Indicator at 211% signals overvaluation, prompting a shift to defensive strategies as fears of economic slowdown grow.2

With the S&P 500 entering correction territory, value ETFs are gaining traction. U.S. growth ETFs saw $3.6 billion in outflows, while value ETFs attracted $1.8 billion in March. The S&P 500 Pure Value Index rose 2.22% year-to-date, contrasting with a 4.73% decline in its growth counterpart, underscoring a shift to stability.3