Investors poured money into European equity ETFs at the fastest pace this year in March, reflecting increasing optimism that the region may outperform in 2025.
A net EUR 18.9 billion was invested over the month into the ETFs, taking the tally in the first quarter to EUR 34.2 billion, according to STOXX data. That compares with EUR 5.7 billion in net inflows for all of 2024 and EUR 9.1 billion in net investments in 2023, the data show. A net EUR 9.6 billion, or 1 in every 2 euros invested in EMEA-focused equity ETFs last month, was placed in an ETF tracking a STOXX or DAX index, the most among all index providers.
The STOXX® Europe 600 index jumped 5.9%[1] in euros in the first three months of the year, helped by relatively low valuations and a historical spending plan from a new government in Germany. By contrast, the STOXX® USA 500 dropped 4.4% in US dollars. Investors have sold US equities and the dollar this year amid rising uncertainty around the impact on the American economy from the Trump administration’s policies.
Germany’s DAX® rose 11.3% in the first quarter while the MDAX®, which tracks mid-cap German companies, added 7.1%.
Flows by product
A net EUR 2.44 billion, or almost a quarter of all STOXX- and DAX-linked inflows, went in March to products linked to the STOXX Europe 600. The second-most popular STOXX index over the month was Germany’s MDAX, at EUR 1.54 billion, followed by the EURO STOXX 50® with EUR 1.3 billion.
The top 5 ranking is completed by the DAX (EUR 1.28 billion in net inflows) and the STOXX® Europe 600 Banks index (EUR 0.94 billion in net investments). STOXX Ltd., part of the ISS STOXX group of companies, is the administrator of the STOXX and DAX indices under the European Benchmark Regulation.
German funds in spotlight
ETFs tracking the benchmark DAX have seen a particular turnaround in interest this year. They have lured a net EUR 2.3 billion so far in 2025, compared to net outflows of EUR 0.6 billion and EUR 1.1 billion in the previous two years. Germany’s leading parties agreed last month to loosen fiscal constraints to boost investments and spending on defense, breaking with years of budget discipline.
“After years of underperformance, Europe now appears as a relatively cheap region that may best weather the volatility from the world’s economy and global trade, and any slowdown in earnings,” said Serkan Batir, Global Head of Product Development and Benchmarks at STOXX. “We are pleased to provide the indices of choice for ETF investors seeking exposure to the region.”
The euro reached 1.16 against each dollar on April 21, up from $1.04 at the start of the year.
April woes
To be sure, the STOXX Europe 600 fell as much as 12% in early April as President Donald Trump imposed tariffs on imports to the US, raising concerns that the global economy could decelerate sharply. The benchmark has rebounded 8% since the April low.[2]
The VSTOXX®, which measures the volatility in Eurozone stocks, more than doubled to 47 on April 7 from 21 at the start of the month, its steepest five-day jump since the start of the COVID-19 pandemic in 2020. It has come down to 26 since then. Germany’s VDAX® spiked to 40 on April 9 from 21 on April 1, before dropping back to 26.
As of the end of March, EUR 121 billion were invested in an ETF tracking either a STOXX or DAX index with an European equities remit.
[1] All returns include dividends.
[2] Data through April 17, 2025.