Goldman Sachs Asset Management launches in Europe a range of actively managed equity exchange-traded funds (ETFs). The Goldman Sachs Alpha Enhanced US Equity Active UCITS ETF (GQUS) is the first of the five funds to be launched; moreover, the ETF is listed on the London Stock Exchange and the Deutsche Börse, with other European exchanges to follow, and will offer exposure to U.S. equities. The four following funds will offer access to global, European, Japanese, and emerging markets equity.
The funds are based on the capabilities of the Quantitative Investment Strategies (QIS) team of Goldman Sachs Asset Management, which represents more than 35 years of investment experience and includes more than 80 professionals worldwide, with over $125 billion in assets under supervision as of December 31, 2024. The QIS team combines various data sources to better understand the growth prospects of companies across different sectors and geographic areas.
The launch comes after the recent entry of Goldman Sachs Asset Management into active ETFs in EMEA with several fixed income funds, expanding the product range and underscoring the firm’s commitment to offering its investment capabilities through the ETF wrapper.
Regarding these launches, Hilary Lopez, Head of Third Party Wealth Business for EMEA at Goldman Sachs Asset Management, said: “Clients are increasingly seeking top-tier active capabilities, with the control and convenience of ETFs. Following the launch of our flagship active fixed income blocks, we are leveraging our proven quantitative investment strategies to expand the range into equities. Our goal is to offer transparency and flexibility while helping investors navigate market turbulence and the changing dynamics of markets.”
For her part, Hania Schmidt, Head of Quantitative Investment Strategies in EMEA at Goldman Sachs Asset Management, commented: “Our data-driven approach is based on the experience, infrastructure, and knowledge of Goldman Sachs, in search of an informational edge to generate differentiated returns and outperform the market.”
Goldman Sachs Asset Management currently manages 55 ETF strategies globally, representing more than $38.7 billion in assets as of March 31, 2025. The TER of the Goldman Sachs Alpha Enhanced US Equity Active UCITS ETF (GQUS) is 0.20%.
Capital Dynamics, independent global asset manager, has announced the appointment of Susan Giacin, current Senior Managing Director and Head of Sales for the Americas, as Global Head of Sales. In addition, she will join the company’s Executive Committee, where she will contribute to the strategic direction of the firm.
According to the firm, in her new role, she will lead the firm’s global fundraising efforts and drive growth across the full range of Capital Dynamics investment strategies, including private equity and clean energy. Giacin will report to Martin Hahn, Chief Executive Officer and Chairman of the Executive Committee, and will be based in the New York office.
Giacin brings more than 25 years of experience in creating, developing, and marketing investment solutions for institutional and wealth management clients. Since joining Capital Dynamics in 2017, she has played a key role in expanding the firm’s investor base in the United States and in strengthening client relationships, and she is recognized as an industry leader in creating accessible private market investment solutions.
“This appointment recognizes Susan’s extraordinary leadership and the impact she has had on the company. Her success in the U.S. market has been a key factor in the expansion of our firm, and we are confident that in her new role, she will help further advance Capital Dynamics’ investment solutions internationally. With her deep market knowledge, client-oriented approach, and ability to collaborate with our globally integrated team, she will bring great value to our already successful international fundraising team,” highlighted Martin Hahn, Chief Executive Officer of Capital Dynamics.
For her part, Susan Giacin, now as Global Head of Sales of Capital Dynamics, stated: “I am delighted to take on this role. Capital Dynamics enjoys a great reputation for delivering innovative, high-quality solutions to investors. As we intensify our global fundraising efforts, I look forward to working with my colleagues to further strengthen our relationships with existing and new limited partners (LPs), and to support our clients’ evolving needs in this rapidly changing investment landscape.”
In a week marked by the release of macro data—including the first-quarter GDP in the U.S.—and the completion of the first 100 days of the Trump Administration, the keyword is confidence. According to international firms in the sector, markets will look for signs and proof of long-term stabilization, such as trade agreements or the action of central banks, to regain confidence. On that path, investors must be prepared to identify opportunities, but also to seek safe-haven assets, as volatility is expected to remain high.
For Benoit Anne, Senior Managing Director of the Strategy and Insights Group at MFS Investment Management, the starting point of all this uncertainty and volatility has been a crisis of credibility in economic policies. “Policy credibility is important and no country is above this basic market law. Apparently, not even the United States. In our view, the most concerning signal seems to come from the U.S. bond market. Although the deterioration of macroeconomic fundamentals should, in principle, have pushed bond yields down, what is happening now is the opposite. In the face of increased risk aversion, U.S. bonds currently do not appear to offer the protection they once did, leading to upward pressure on yields. To be clear, it is still too early to know whether this confidence shock will persist for a long time. Given the extreme level of uncertainty, we believe the market backdrop may change radically in a relatively short time,” acknowledges Anne.
He explains that this “confidence shock” is quite rare and occurs due to a “triangular market correction,” meaning that massive sell-offs occur simultaneously in a country’s Treasury bond market, equity market, and currency market. He notes that historically, this unusual market phenomenon has been observed mainly in emerging markets, such as during episodic financial crises in Brazil or Turkey in the 1990s or 2000s. “However, it is not a phenomenon exclusive to emerging markets. We all probably remember the episode of the UK’s mini-financial crisis in October 2022,” he adds.
Implications for the Investor
In this context, Lombard Odier acknowledges that it has taken advantage of the market downturn to rebalance portfolios and restore strategic equity weightings in multi-asset portfolios. “We continue to overweight fixed income. We believe our base case of slower growth, but without a recession, with interest rate cuts from central banks supports this tactical positioning. We are ready to make further adjustments as the situation evolves, following the steps outlined below,” they explain.
Based on their experience, the question investors should ask is what the path is to restore confidence. In their view, confidence tends to be restored in the markets through the initial attempts to buy assets at low prices. “While equity markets rebounded, other parts of financial markets have remained volatile, preventing this behavior from taking hold. It would be encouraging to see more buying attempts by investors at these levels. That would support other segments of the markets,” they point out.
For Michaël Lok, Group CIO and Co-CEO of UBP, “it is likely that investors will have to continue relying on strategies focused on risk management until markets better absorb the new landscape of growth, inflation, and geopolitics that is taking shape. Tactical risk management has helped us endure one of the biggest market declines since 2020. Gold and cash remain reliable safe havens.”
When discussing more reliable assets, MFS IM adds that, leaving aside the U.S. bond market, the best fixed income results will likely be found in asset classes with low duration and low credit risk, along with low correlation to the U.S. “With this in mind, the Global Agg index was the best refuge, with a positive return of 0.83%. The EUR IG also showed great resilience, with a marginally negative return (-0.20%). On the other hand, it is worth noting that local emerging market debt performed well during this period, favored by the weakness of the dollar. The local EM debt index delivered a return of 0.72%. Beyond fixed income, some currencies benefited significantly from the widespread weakness of the dollar. The Swiss franc has risen nearly 8% since April 1, reaffirming its status as a defensive asset. And gold has gained nearly 3.5% during this time,” argues Anne.
Finally, Duncan Lamont, Head of Strategic Research at Schroders, does not believe that investors should close the door on equities. According to Lamont, the market downturn means that the cash you’re considering investing will go further. “Valuations have come down and, in the case of non-U.S. markets, are cheap compared to history. Not too much, but bargains can be found. Even the U.S., which for so long has been an outlier, is quickly converging toward more neutral valuations compared to history,” he notes.
Calm: Declines Are Not Unusual
Lamont, Head of Strategic Research at Schroders, reminds us that downturns in equity markets are normal and part of the financial system’s mechanics. In fact, he points out that in global equity markets (represented by the MSCI World Index), 10% drops occurred in 30 of the 53 calendar years prior to 2025. In the past decade, this includes 2015, 2016, 2018, 2020, 2022, and 2023. Meanwhile, more significant declines of 20% occurred in 13 of the 52 years—once every four years on average. But if it happens this year, it would make it four times in the last eight years: in 2018, 2020, and 2022.
“That markets fall is nothing new, but that doesn’t prevent the feeling of panic from taking hold of investors. The stock market falls by 20% once every four years on average, and by 10% in most years. It’s easy to forget this. Even if you’re an experienced investor, how much comfort does that bring you when you’re in the thick of it? The simple reality is that the stock market has tremendous power to help grow wealth over the long term, but short-term volatility and the risk of drawdowns are the toll to pay,” points out Lamont.
The reading made by Union Bancaire Privée (UBP) is that markets appear to be focusing on weaker growth (the first impact) and a “transitory” rise in inflation, as described by Fed Chair Jerome Powell in his March press conference.
“In fact, 5-year inflation expectations are now at their lowest level in comparison with their 2-year counterparts since 1980 (outside of the initial deflationary shock of the 2020 global pandemic), which suggests that markets are not focusing on medium-term inflation concerns and instead, U.S. Treasury yields are closer to pricing in a recessionary environment—that is, weak growth and weak inflation in the medium term,” they point out in their April “House View” report, titled “Navigating Market Instability.”
In fact, UBP highlights that despite equity market declines, global equity valuations have returned to nearly historical averages.
“This suggests that markets are no longer discounting a repeat of the economic and corporate earnings boom centered in the U.S. in 2017, which occurred in the first year of Trump’s term. Instead, they reflect expectations of more moderate, though still favorable, economic and earnings growth. However, these more moderate expectations do not reach the recessionary scenario that bond markets are increasingly pricing in,” they indicate.
BECON Investment Management organized a breakfast for women in the financial industry in Miami at the Tiffany & Co location in the Design District. At the event, attendees were able to admire the store of the famous jewelry house, which was reopened a year ago after a renovation inspired by the connection that American artist and designer Louis Comfort Tiffany had with the city.
Alexia Young, International Sales Representative at BECON IM, was the host of the event and explained that the choice of location for the gathering was related to the desire to bring the firm’s clients together in a space that offers a “sensory experience” like no other.
As the group toured the location, guided by the jewelry store’s specialized staff, the women were able to admire the Bronze Venus Italica by Daniel Arsham, stunning hand-blown glass chandeliers by Venini, and captivating ceramic table lamps by artist Peter Lane.
On the second floor, they paused to view some of the store’s most exquisite jewels, such as a morganite ring, a gemstone from the beryl family—the same mineral family that includes other famous gems like emerald (green) and aquamarine (blue). Its characteristic color ranges from soft pink to peach, and it was given its name in 1911 in honor of the renowned banker J.P. Morgan, who was a gem collector and a major client of Tiffany & Co.
They also explained the story behind the brand’s famous blue box, the “Tiffany Blue Box”, one of the most recognizable symbols of luxury in the jewelry world and a marketing masterpiece. In 1845, the brand launched its first Blue Book, an annual catalog of fine jewelry, and chose a distinctive shade of blue for its cover. This catalog could not be requested; you were selected to receive it, and it became a symbol of social status in New York. Its color, which would later become known as Tiffany Blue, became synonymous with the brand. The catalog evolved into the box, and today it remains a coveted item and a symbol of exclusivity—to the extent that employees of the company are forbidden from giving away a box unless it accompanies a legitimate purchase.
The tour concluded with a breakfast in the “Comfort Lounge,” a speakeasy that pays tribute to Louis Comfort Tiffany, named after his estate, Comfort Lodge, which was located on the now-vanished Millionaire Row of Brickell Avenue in the 1930s.
Alexia Young wanted to remind attendees that, like the jewels of Tiffany & Co., the funds distributed by BECON Investments can also be considered gems within their respective asset classes.
Morgan Stanley launched a new digital platform aimed at the most active traders. It is called Power E*Trade Pro and is currently in pilot phase. Its full launch is scheduled for June. The announcement appears on the E*Trade website, where a video explains some of its functionalities.
“Our sophisticated trader group is very important to us,” said Jed Finn, Head of Wealth Management at Morgan Stanley, to Bloomberg news agency. Finn explained that the firm asked the most sophisticated active traders in the industry what they needed “to take your game to the next level.”
The new E*Trade platform will allow traders to customize up to 120 tools across six screens in a desktop application separate from the company’s current web and mobile products. On the website, it is announced that it will have “near-unlimited customization and multi-monitor support,” as well as “advanced charting and technical analysis,” with over 145 technical studies and drawing tools. It will also include “simplified tools such as customizable options chains, and the ability to track and trade futures.”
The launch coincides with the high volatility currently affecting financial markets due to Donald Trump’s tariff policy, which unleashed a trade war but in turn drove up trading volumes on brokerage platforms. At E*Trade, April 4 and 7 were the two highest-volume days in over three years, according to Finn. The tariffs were announced by the U.S. President on April 2, called by Trump “Liberation Day.”
In October 2020, Morgan Stanley completed the acquisition of E*Trade for 13 billion dollars, marking the largest acquisition by a major U.S. bank since the 2008 financial crisis. This move significantly expanded Morgan Stanley‘s wealth management capabilities, adding more than 5 million retail client accounts and approximately 360 billion dollars in assets.
With this new platform, Morgan Stanley will compete directly with Thinkorswim, from Charles Schwab, and Legend, from Robinhood Markets.
BBVA opens its third International Private Banking hub in Spain, after the U.S. and Switzerland
Latin American clients have around half of their wealth outside their country of origin, and Spain is in their sights: it has become an attractive destination, not only in terms of financial and real estate investments, but also due to factors such as language, quality of life, and security. This has led BBVA to create a specialized International Private Banking unit in the country, with the goal of serving global clients who wish to invest in Spain. This new unit joins the platforms already existing in Switzerland and the United States, reinforcing BBVA’s international model and consolidating Spain as a strategic hub in its global offering of high-value-added services.
The entity, which already has 583 international clients in this unit in Spain, with 440 million euros in volume and a growth of 43 clients so far in 2025, had been working over the past three years with Latin American clients through its local private banking; now, the business achieved has provided the incentive to give it this new international structure, with slightly different protocols. Although no specific growth objectives have been set, they are ambitious about what can be achieved in international private banking and believe this is just “the tip of the iceberg,” explained Fernando Ruíz, Head of Private Banking at BBVA in Spain, in a meeting with journalists.
Because the creation of a specialized private banking unit that only serves international clients allows for better adaptation to those clients (who have their particularities, such as, in the case of Latin Americans, the appetite for real estate or investments in dollars), expanding the group’s international offering to a third market and becoming a reference in Spain in international private banking, taking advantage of the group’s positions and synergies in Latin America. “Having a specialized team will allow us to better understand the client, analyze how they invest, and adapt,” he said, with a relationship model that is in-person (through the dedicated office in Madrid and trips to the countries of origin) and digital communication and operational capabilities.
To this office, located at Goya 31, which represents a first step, more centers could soon be added in potential areas such as the Mediterranean coast, cities like Barcelona, or the Northwest area (Galicia especially), leveraging the 218 locations where BBVA’s local private banking is present in Spain. “In the U.S. we started with centers in Miami and then expanded to Houston (Texas) and California. In Spain, we could follow the model, as long as we see that it is convenient for international clients,” stated Jaime Lázaro, Head of Asset Management & Global Wealth.
Colombia, Mexico, and Peru
The new unit is born with the aim of offering an exclusive service adapted to the particular needs of international clients, especially those from countries like Mexico, Colombia, and Peru, who seek to diversify their wealth outside their places of origin. The Goya office has a team of five professionals dedicated to those clients, composed of Javier Domínguez Freijo, as director, and four bankers: Alejandro Valverde Carranza (for clients from Mexico), Silvia Díaz Henao (Colombia), Gonzalo Martín Soria (Peru), and María López Moral (other geographies). All of them—highly specialized bankers with exclusive dedication, capable of understanding the wealth, tax, and legal particularities of each country—were already working in BBVA‘s private banking. The team will also grow with the business, with a preference for internal talent although external hires are not ruled out.
“Latin American clients have 50% of their wealth outside their country of origin. In some cases, they want to diversify and we help them come to Spain; in other cases, the clients are already here and we serve them with the support of the LatAm franchises. In the end, they are usually clients with investments in some Latin American country, who asked us about BBVA’s offering in international private banking and now, as a third path in addition to the U.S. and Switzerland, we can offer them Spain,” added Ruíz. “With this new unit, our goal is to elevate and differentiate international private banking in Spain, replicating the model of excellence we already offer from our offices in Switzerland and the United States. We have created an exclusive, highly specialized team, capable of meeting the specific needs of international clients, in many cases different from those of national private banking. We want to offer a unique service in the Spanish market, both to those who reside in the country and to those who have interests here from other geographies,” he added.
Clients can access the international private banking offering starting from 500,000 euros, under the same conditions as local private banking, and with the same service standards, in which BBVA Patrimonios and the ultra-high-net-worth unit come into play. Currently, the average volume of international clients is around 800,000 euros. Of these clients, about half are from Colombia, 30% from Mexico, and 20% from Peru. According to the firm, the end of the Golden Visa in Spain will not be a determining factor for the arrival or withdrawal of investments, just as it has not been a significant attraction lever in recent years.
Under the umbrella of the international platform
The value proposition of this specialized unit is based on BBVA’s international platform, Global Wealth, which connects all the Group’s local banks and enables global and consistent service in any geography. In this way, the personalized attention provided by the team of the new Madrid office is complemented by close coordination with the bank’s local teams in the clients’ countries of origin, ensuring comprehensive wealth management at the international level, the firm explains.
“Private Banking is one of the strengths of the BBVA Group, and therefore our global private banking unit, Global Wealth, has as a priority objective to provide a unique and consistent experience to clients with interests in different geographies, becoming their best financial ally through a relationship and advisory model that is transparent, complete, and consistent in all our processes and wealth solutions,” stated Lázaro.
The person responsible for these units recalled the strength of their service, between local and global, and the strategic priority represented by the development of private banking for the group, already present in nine markets, in Europe (Spain, Switzerland, and Turkey) and the Americas (Uruguay, Argentina, Peru, Colombia, Mexico, and the U.S.), with 200 billion euros in assets. “We want clients to perceive that they are working with a single bank, even if they have accounts in more than one country,” he said, assuring that the bank’s communication circuits will enable holistic and global advisory and reporting.
BBVA offers these clients not only specialized bankers but also expert teams in wealth planning and strategic analysis. Notably, the Global Wealth Planning area, present in Spain, Mexico, and Switzerland, enables efficient and personalized wealth structuring. The bank also collaborates with prestigious international firms, as well as with local firms in each country, to provide complete coverage on legal and tax aspects.
A tailored value offering
Specifically, the value proposition for international private banking clients—coordinated between the experts of the international unit and the locals in each geography—is focused on wealth planning, as well as services in high demand such as real estate (with BBVA’s agreements with Intrum and CBRE), alternatives (in which the bank has recently launched proposals), financing facilitation, arrival and residency support in Spain (with agreements with leading entities), assistance to companies and families to transfer wealth from generation to generation, and the same products available to local private banking clients.
In terms of investment solutions, BBVA’s international clients have access to discretionary management portfolios or advisory services tailored to their risk profile and currency, proprietary and third-party funds (via Quality Funds), private market opportunities, customized financing, real estate services with specialized brokers, international payments solutions, and premium cards with global benefits, as well as advice on business investments. Thanks to the international network of the BBVA Group and the global capabilities of its various areas such as BBVA Research, BBVA Asset Management, Quality Funds, or Corporate & Investment Banking (CIB), the entity can offer a comprehensive, flexible, and dynamic approach to wealth management, adapted to the circumstances and objectives of each client.
“It’s about giving them the same as in Spain, but with adaptations to their peculiarities—for example, adjusting their investments in dollars. We also remind that in all countries BBVA facilitates product offerings through open architecture via BBVA Quality Funds. We don’t want the client’s preference to be conditioned by the product offering, which is available in the three international private banking centers,” added Lázaro. The offering also includes services beyond traditional financial ones, such as educational, sports, or cultural topics.
Growth in local private banking in Spain
In this context, BBVA’s private banking in Spain continues to grow strongly. The entity manages nearly 140 billion euros in assets under management and has 158,000 clients and 722 bankers. The objective is to reach 200,000 clients in three years and manage 150,000 investment portfolios in the next two years, thus consolidating its personalized advisory model based on the combination of the banker’s knowledge and technological support.
Vontobel has announced the appointment of Ana Claver to the firm as the new Head of International Clients. According to the firm, in her new role she will be responsible for leading Vontobel’s distribution business in EMEA (excluding DACH), US Intermediary, US Offshore, and Latin America.
The firm highlights that Claver brings extensive experience in senior leadership roles at a global level and a proven track record in developing client-oriented solutions and partnerships across a wide range of markets. She joins Vontobel from Robeco, where she recently served as Head of Wholesale Sales in Europe. Previously, she was Managing Director of Robeco Iberia, U.S.Offshore, and Latin America. Her professional experience also includes senior roles at Morgan Stanley, Venture Consulting, and UBS. She holds a degree in Economics and Business Administration from ICADE in Madrid and is a CFA Charterholder.
Following the appointment, Christoph von Reiche, Head of Institutional Clients, stated: “We are pleased to welcome Ana to Vontobel. Her experience and strategic vision will help accelerate our expansion and deepen our commitment to clients in key markets. This appointment reflects our dedication to partnering with our clients and delivering innovative investment solutions that meet their evolving needs.”
Nomura and Macquarie have announced an agreement whereby Nomura will acquire Macquarie’s public asset management business in the United States and Europe, with approximately $180 billion in assets from retail and institutional clients across equity, fixed income, and multi-asset strategies.
According to the terms of the agreement, Nomura will acquire 100% of the shares of three companies operating Macquarie’s public asset management business in the United States and Europe for a cash purchase price of $1.8 billion, a figure subject to closing adjustments. The transaction is expected to be completed by the end of the year and is subject to customary conditions and regulatory approvals.
Nomura has identified global asset management as a key strategic growth priority for the firm. Through this transaction, Nomura will significantly expand the global capabilities and client presence of its Investment Management Division, which currently manages approximately $590 billion in client assets.
Once completed, the total assets under management by Nomura’s Investment Management Division are expected to rise to approximately $770 billion, of which more than 35% will be managed on behalf of clients outside Japan. This acquisition will also provide Nomura with a scalable hub, based in Philadelphia, to continue growing its international Investment Management business.
This high-margin business will bring well-established distribution networks across both the retail and institutional segments. The business has a presence on nine of the ten largest U.S. retail distribution platforms, as well as strong institutional relationships, including in the U.S. insurance sector, a growing market for asset managers globally. With its origins in Delaware Investments, founded in 1929 and acquired by Macquarie in 2010, the business has a long history of serving clients through active management strategies.
As part of the transaction, Nomura and Macquarie have agreed to collaborate on product and distribution opportunities, including appointing Nomura as the U.S. wealth distribution partner for Macquarie Asset Management and providing continued access to U.S. wealth clients to Macquarie Asset Management’s alternative investment capabilities. Additionally, Nomura has committed to providing seed capital for a series of Macquarie Asset Management alternative funds tailored to U.S. clients.
Currently, the business is managed by a highly experienced team led by Shawn Lytle, President of Macquarie Funds and Head of the Americas for Macquarie Group. Shawn, along with John Pickard, CIO Equities & Multi-Asset, Greg Gizzi, CIO Fixed Income, and Milissa Hutchinson, Head of U.S. Wealth, will continue managing the business after the acquisition.
In collaboration with this leadership team, Nomura plans to carry out several initiatives to support organic growth, increase the scale of assets under management, and diversify the business’s range of capabilities following the acquisition. These initiatives, which will build on the business’s strengths and aim to position the platform to continue delivering strong long-term investment performance, include:
The development of new investment capabilities designed to meet client needs.
Expansion of the active ETF platform launched by the firm in mid-2023.
Investment in talent and data analytics to grow the distribution platform.
Leveraging existing distribution channels to offer retail and institutional clients access to Nomura’s broader asset management capabilities.
“This acquisition aligns with our global diversification and growth ambitions for 2030, with a focus on investing in stable, high-margin businesses,” said Kentaro Okuda, President and CEO of Nomura Group. Okuda added that the transaction “will be transformative for our Investment Management Division’s presence outside Japan, adding significant scale in the United States, strengthening our platform, and creating opportunities to build out our public and private capabilities. We are excited about the prospect of welcoming more than 700 employees who will be joining Nomura Group.”
For his part, Chris Willcox, President of Nomura’s Investment Management Division, added that this transaction “will accelerate the expansion of our global Investment Management business and marks an important step in building a truly global franchise with a full range of solutions to serve investors around the world.”
Macquarie’s Public Asset Management Business in the United States and Europe Macquarie established its public asset management business in the United States and Europe through the acquisition of Delaware Investments in 2010, a U.S. mutual fund business established in 1929.
The public asset management business has grown organically and through select acquisitions, including the purchase of Waddell & Reed in 2021, adding to its capabilities in active management of long-term open-end mutual funds in the United States and expanding its U.S. client base.
In 2023, the business launched active ETFs and currently manages more than a dozen ETF strategies in the U.S. With more than 700 employees based in Philadelphia, the business has a strong U.S. intermediary and institutional client franchise.
Analysts at Freedom24, the investment platform of European group Freedom Holding Corp., reveal a historic shift in capital flows: U.S. investors are making strong bets on Europe. In just the first quarter of 2025, they invested $10.6 billion in European exchange-traded funds (ETFs), a figure seven times greater than during the same period in 2024, driven by volatility in U.S. markets and Europe’s fiscal and regulatory revival.
Since January, European equities have outperformed U.S. stocks by more than 10%, prompting a reassessment of where the best opportunities lie. Freedom24 analysts examine the European ETFs receiving the highest inflows in 2025, based on available data and trends as of April 3, 2025.
Historic Inflows of $10.6 Billion European ETFs recorded historic inflows of $10.6 billion in Q1 2025, marking a sharp turnaround from the $6.4 billion in net inflows accumulated since February 2022. This recovery comes at a time when U.S. markets are under pressure from new tariff threats — a factor that sharply contrasts with the performance of the Morningstar US Market Index. While the latter has seen a cumulative drop of about 8%-9% through mid-April 2025 due to these pressures, the Morningstar Europe Index has followed a different trajectory, showing much more restrained movement during the same period, after a notable rise at the start of the year.
This shift is also evident in European investor behavior: in February, they withdrew $510 million from U.S. equity ETFs. This contrasts with the strong global appetite seen just a few months earlier, when November 2023 saw $22.8 billion in inflows into such products, according to etf.com. In summary, MEGA-style operations (Make Europe Great Again) are quickly replacing MAGA (Make America Great Again) trades.
Defense: A Rising Star Defense remains the crown jewel, driven by Europe’s €800 billion ($866 billion) rearmament and Germany’s fiscal expansion. The Select STOXX Europe Aerospace & Defence ETF (EUAD), launched in October 2024, had already raised $476 million by April 2025 — a sign of its appeal. European defense stocks have risen 33% this year, and valuations — such as Rheinmetall trading at 44 times future earnings — have surpassed their U.S. counterparts and even luxury brands like Ferrari.
Still, caution is warranted: although profit growth forecasts (e.g., 32% annually for Rheinmetall through 2028) are tempting, 78% of the EU’s arms spending since 2022 has occurred outside the bloc, mainly in the U.S. Nevertheless, EUAD remains a favorite for this long-term trend, along with supply chain players like Eutelsat (ETL.PA), which surged 260% this month amid Ukraine-related speculation.
European ETFs with the Largest Inflows in 2025 Based on early trends and reports, the funds attracting the most attention from U.S. and global investors include standout options for both their financial characteristics and macroeconomic backdrops.
One of the most notable is the iShares MSCI Germany ETF (EWG), which has received over $1 billion in inflows this year. The fund benefits from Germany’s fiscal push in areas such as infrastructure and climate, as well as the positive performance of the German stock market, which rose 9.04% in January.
The iShares MSCI Europe (IEV) is also drawing significant interest, partly due to its broad exposure to the European market and a low expense ratio of 0.59%, within an environment of $2.3 trillion in assets under management in European ETFs in 2024.
Meanwhile, the Vanguard FTSE Europe ETF (VGK) stands out among the leaders thanks to its competitive 0.07% expense ratio and $3.5 billion in inflows into Vanguard’s UCITS products this year.
Finally, the iShares Core MSCI Europe UCITS ETF (IMEU), although without specific 2025 data, has maintained strong momentum supported by a solid historical return and the $11.59 billion raised in January by iShares products.
What’s Driving the European ETF Boom? According to Freedom24 analysts, the renewed appeal of European ETFs is due to several structural factors. First, Europe is moving faster than the U.S. in cutting red tape, creating opportunities in multiple sectors. Germany’s €500 billion infrastructure fund, expected to boost GDP by 1.4% annually, is a key example. This has directly benefited the iShares MSCI Germany ETF (EWG), which has doubled its assets after receiving $1 billion.
Another highlight is the expansion of the bond market. Rising German debt and the EU’s €150 billionSAFE program are increasing the supply of AAA-rated assets, boosting products like the First Trust Germany AlphaDEX Fund (FGM).
The European banking sector is up 26% in 2025 — its best quarter since 2020 — and markets like Spain and Italy are gaining prominence due to lower trade tensions and attractive valuations. In fixed income, bond ETFs attracted $9.3 billion in February, with funds like the iShares Core € Corp Bond UCITS ETF (IEAC) leading in inflows.
Lastly, the energy transition is solidifying as a key driver. With solar energy reaching 11% of Europe’s electricity mix, companies like Iberdrola and Enel — which have appreciated between 7% and 16% this year — are boosting interest in ETFs focused on renewables.
From Outflows to Opportunity: Europe’s New Paradigm Since 2022, when Europe saw $6.4 billion in net outflows from ETFs, the landscape has radically changed. Germany’s strong climate investment and the EU’s push for renewables have restored the continent’s appeal. Logistics and communications firms like Scania (Traton) and Atlas Copco are also well positioned amid growth in defense and infrastructure.
Europe: A Long-Term Strategic Bet According to Freedom24 analysts, the $10.6 billion surge into European ETFs in Q1 is not a passing trend but a sign of Europe’s “MEGA Moment.” Funds like the Select STOXX Europe Aerospace & Defence ETF (EUAD), iShares MSCI Germany ETF (EWG), and First Trust Germany AlphaDEX Fund (FGM) are leading the shift. At the same time, sectors like banking and renewables and regions like Southern Europe are solidifying their appeal.
Despite strength on both sides of the Atlantic, European ETFs are growing at a faster pace. According to EY, assets under management in Europe reached $2.3 trillion at the end of 2024 and could rise to $4.5 trillion by 2030, driven by retail trading and the growth of individual savings.
In conclusion, say analysts at Freedom24, Europe is consolidating its position as an undervalued region with high potential. Its fiscal agenda, favorable regulation, and leadership in key sectors make it an increasingly present bet in global portfolios. In the long term, smart capital is clear: Europe is back at the center of the map.
After pressure from the White House on the Fed Chair, the U.S. dollar weakened, starting the week at a low. According to experts, it’s not just this tension that is taking a toll on the greenback—protectionist policies from the Trump administration are also weighing on it. This is clearly being felt in its exchange with other currencies: the euro has reached $1.15, levels not seen in three years. As a result, some asset managers are looking further ahead and suggest that, after having reigned supreme in international trade, the dollar’s status as a safe-haven asset is now being called into question.
The interpretation so far, according to asset managers, is that the dollar weakened sharply during the first quarter of the year, as the “Trump Trade”—higher rates, stronger U.S. equity performance, and a rising dollar—collapsed after the inauguration on January 20.
“With the first tariff announcements targeting Mexico and Canada as key trade partners, U.S. political uncertainty rose sharply. The collapse in consumer and business confidence increased expectations of rate cuts in the U.S., narrowing the yield gap between the U.S. and its major peers. The plunge in the USD DXY worsened after the tariff announcement on April 2, causing it to fall 5% year-to-date,” explains Thomas Hempell, Head of Macro Research at Generali AM (part of Generali Investments), regarding the dollar’s weakening.
Reasons for Its Weakness The recent drop in the DXY index below the 99 level, reaching lows not seen since early 2022 around 98.2 points, underscores the growing uncertainty in financial markets. According to Claudio Wewel, currency strategist at J. Safra Sarasin Sustainable AM, the dollar has shown a downward trend in recent weeks, as U.S. activity indicators have pointed to weakness due to high political and macroeconomic uncertainty. In contrast, he notes that hard data remain strong, with a resilient U.S. labor market. “We have adopted a cautious stance on the dollar, especially following President Trump’s announcement of very high reciprocal tariffs on U.S. trading partners, which in our view represents a significant recession risk,” acknowledges Wewel.
For his part, Thomas Hempell states that, with U.S. exceptionalism eroding rapidly and the effective dollar still expensive, they expect the U.S. currency to continue retreating in the coming months. “Amid growing cyclical concerns, the Fed will be more willing to overlook the inflationary impact of tariffs and will maintain a dovish bias to the detriment of the dollar,” he adds.
Loss of Confidence For Marco Giordano, Chief Investment Officer at Wellington Management, the erosion of U.S. institutional integrity could further weaken the dollar’s status as a reserve currency and disrupt global capital flows. “The dollar and U.S. Treasuries have more than completely reversed the move since the November 2024 elections. The euro, yen, and Swiss franc have continued to appreciate against the dollar, as investors seek safe-haven currencies amid rising geopolitical uncertainty,” says Giordano.
Beyond short-term movements, what worries analysts is the questioning of the dollar’s role as a global reserve asset. According to a report by Eduardo Levy Yeyati, Chief Economic Advisor at Adcap, since January, the DXY has fallen more than 8%, hitting a three-year low. “Unlike past episodes, the dollar is not acting as a safe haven. In fact, it has depreciated against the yen, the Swiss franc, and gold — a sign of structural loss of confidence,” he notes.
According to their in-house report, the narrative from the Trump administration — which sees the “exorbitant privilege” as a barrier to competitiveness — has sparked fears of even more uncoordinated fiscal and monetary policy. “Investors are already contemplating extreme scenarios: tariffs on foreign purchases of Treasuries, capital controls, withdrawal from the IMF, and even selective defaults as a political tool. All of which could bring irreparable damage to the international financial system — just as we suspect the tariffs already have to trade,” Yeyati adds in the report.
The main hypothesis is a growing distrust in the dollar, a situation with consequences that are difficult to gauge and that would benefit alternative currencies such as gold. After reigning supreme in international trade, the dollar’s status is being questioned. In fact, its share in central bank reserves has dropped from 65% in 2016 to 57% in 2024, according to the IMF. To replace it, central banks around the world have rushed to gold, explains Alexis Bienvenu, fund manager at La Financière de l’Échiquier.
In Bienvenu’s view, the gradual distancing from the dollar is now joined by the U.S.’s willingness to loosen the constraints surrounding a reference currency. “This status, which ensures unrelenting demand, automatically results in structural overvaluation and thus a loss of competitiveness for exports. The core of the Trump administration’s economic objective is to correct this situation. In principle, the depreciation of the dollar — including pressuring the Fed to prematurely cut interest rates — would help boost goods exports. This policy could even lead to a concerted devaluation of the dollar, as rumors surrounding the mysterious ‘Mar-a-Lago accords’ suggest. From this perspective, gold would play a safe-haven role, since no one can devalue it. Hence its appeal,” concludes the fund manager.
Associated Risks Looking ahead, Quásar Elizundia, Market Research Strategist at Pepperstone, believes the dollar’s trajectory appears tied to a complex interplay of factors. “Trade policies and their impact on inflation and economic growth will continue to be key. However, the shadow of political interference in the Fed’s independence adds considerable risk. As long as uncertainty over the Fed’s independence persists, we are likely to see increased volatility and potential structural weakness for the U.S. dollar. The dollar’s status as the ultimate safe-haven asset can no longer be taken for granted; it is actively being put to the test,” Elizundia adds.
In Giordano’s view, one risk the Trump administration may face is that, due to the loss of trust, countries may be less willing to negotiate than in the past.
“This risk has been accelerated by the administration’s tariff announcement and is unlikely to dissipate even if some of these tariffs are paused for 90 days before implementation. There is a higher likelihood of rising economic nationalism and capital repatriation. We expect this announcement to be the trigger — or at least the accelerator — of net capital outflows from U.S. financial assets toward global fixed income, which should imply significantly higher risk premiums and higher long-term bond yields for the U.S. Elsewhere, this could become a major technical factor supporting non-U.S. financial assets, with European, Japanese, and Chinese fixed income potentially benefiting from U.S. outflows,” he adds.
The latest report published by Ebury acknowledges that, as a main trend, we are seeing a rise in G10 currencies, including the euro. “Since Liberation Day, the euro has been the world’s best-performing currency, except for the Swiss franc, which suggests the eurozone is receiving a significant share of capital fleeing the U.S. Evidence of this is the euro’s rise even after the ECB’s dovish meeting, which should have been bearish for the common currency,” the report notes.
