US ETF flows rise but investors flee Europe
One of the best ways to gauge how your fellow investors feel about the market is to follow the money.
The flows of cash in and out of European exchange-traded funds (ETFs) during June suggests a pivot back towards US stocks and funds and away from their European counterparts, according to analysis of etfbook.com data from investment manager Fidelity International.
June was a strong month for European ETF flows overall, attracting just under $45 billion in total funds – 29% above the three-month average monthly flow and 19% above the 12-month average.
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“Strong corporate earnings, combined with new record highs in equity markets, have boosted investor confidence,” said Stefan Kuhn, European head of ETF and index distribution at Fidelity International.
If you’re considering where to invest for the coming months, it can help to have an idea of which way the money has been going recently.
Fund flows shift from Europe to America
Funds investing in North American equities saw $14.7 billion of inflows during the month, more than three times the monthly average for the region over the past year.
Much of the strength in American stocks will have been driven by demand for artificial intelligence ETFs, with the US still the major player in the theme. The sector also received a sentiment boost in June from SpaceX’s record-breaking initial public offering.
At the same time, though, European investors appear to have abandoned their domestic markets, with Europe-listed ETFs targeting European stocks registering $2.2 billion in outflows in June.
| Header Cell – Column 0 |
June 2026 |
3-Month Average |
Increase/decrease |
12-Month Average |
Increase/decrease |
|---|---|---|---|---|---|
|
Total |
44975 |
34847 |
29% |
37890 |
19% |
|
Equities |
36126 |
23813 |
52% |
27245 |
33% |
|
North America |
14663 |
5317 |
176% |
4799 |
206% |
|
Europe |
-2160 |
395 |
-647% |
4334 |
-150% |
|
Emerging Markets |
745 |
1384 |
-46% |
3480 |
-79% |
|
Fixed Income |
9899 |
8958 |
11% |
9322 |
6% |
|
Government |
3099 |
2989 |
4% |
2839 |
9% |
|
Corporate |
1657 |
1580 |
5% |
2182 |
-24% |
|
High Yield |
1699 |
-406 |
518% |
607 |
180% |
Source: etfbook.com via Fidelity International. Data as of 30 June 2026.
“The story of the second quarter was the return of the United States,” said Kuhn. “While investors were allocating more heavily to Europe and other regions at the start of the year, we are now seeing a clear preference for the US market again,” he added.
June marks the third consecutive month of outflows for Europe-focused funds according to Fidelity.
Commodity ETFs slide as investors snap up active ETFs
Demand for commodity ETFs waned during June, coinciding with a decline in gold prices as expectations for higher interest rates (particularly in the US) rose and the war in Iran appeared to be simmering down.
“With the immediate escalation phase now behind us, some of the geopolitical risk premium has faded from commodity markets,” said Kuhn. “At the same time, many investors expect central banks to keep interest rates higher for longer, making non-yielding asset classes such as gold less attractive.”
Actively-managed ETFs, though, continue to soar in popularity. June was a record month for flows into this category of funds, according to Fidelity’s analysis.
“Strong demand for active ETFs shows that investors increasingly want to differentiate between regions, sectors and individual companies,” said Kuhn. “In a market where the gap between winners and losers is widening, active security selection can provide real added value.”
