ADVERTISEMENT

Biggest European Stock ETF Sees Worst Exit of 2019 as Risks Rise

Biggest European Stock ETF Sees Worst Exit of 2019 as Risks Rise

(Bloomberg) -- European equities may have pared back some losses but passive investors continue to rush out the door, as the largest exchange-traded fund focused on the region’s stocks suffered its biggest single-day outflow since December.

The Vanguard FTSE Europe ETF lost $140 million in the latest session that Bloomberg has data for, bringing August’s total to $331 million.

Biggest European Stock ETF Sees Worst Exit of 2019 as Risks Rise

In addition to being a victim of trade tensions and U.S. recession concerns, Europe is facing political crises in Italy and the U.K. and a contraction in Germany’s economy. The latest Bank of America Corp. survey showed that global investors turned 3% underweight on euro-zone stocks this month compared with a 9% net overweight position in July.

The Stoxx Europe 600 Index sank to the lowest level since February last week but has been bouncing back since Friday as the White House sought to soften its rhetoric on China.

To contact the reporter on this story: Ksenia Galouchko in London at kgalouchko1@bloomberg.net

To contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, Jon Menon, John Viljoen

©2019 Bloomberg L.P.