European Equity Trading Volumes Surge 29% in 2025, Despite Sector Outflows
In the first eight months of 2025, European equity trading volumes surged by 29% year over year, reaching €16.4 trillion by September. Meanwhile, investors poured US$27 billion into European equities, with ETFs like Vanguard FTSE Europe ETF leading the way. However, the picture was mixed, with significant outflows from certain sectors and funds.
Derivative-income funds attracted substantial investor flows, with JP Morgan Nasdaq equity premium income ETF topping the list with inflows of +$8.8 billion (+42.7%). In contrast, healthcare focused vehicles saw US$17.9 billion of redemptions, led by Vanguard health care fund's loss of US$4.8 billion (-11.9%). Energy equity funds also experienced US$12.5 billion of outflows, with energy select sector SPDR fund suffering the largest outflow of -$7.0 billion (-20.9%).
Despite the overall growth in European equity investments, the trend shows a shift in investor preferences, with significant outflows from healthcare, energy, and ESG-focused funds. This shift could indicate a change in investor sentiment towards these sectors and funds, potentially driven by factors such as geopolitical instability, regulatory changes, or market performance.
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