A Single Trade Worth $1 Billion Fueled Record Flow to Europe ETF

It looks like a single giant trade has just fueled the biggest ever inflow to one of BlackRock Inc.’s funds tracking European markets.

The iShares MSCI Eurozone ETF (EZU) lured about $1.1 billion of new money on Monday, boosting its assets to $8.1 billion, according to data compiled by Bloomberg. Among transactions on the day was one trade worth $977 million at around 1:17 p.m. in New York.

While it’s impossible to say with absolute certainty the trade was an inflow and difficult to know who was responsible, a huge bet on Europe chimes with recent rising optimism surrounding the region. As vaccinations ramp up and economic activity begins to recover, European stocks are trading at a record and ETFs tracking the region posted the best inflows since 2015 last month.

A Single Trade Worth $1 Billion Fueled Record Flow to Europe ETF

“We’re starting to see numbers that are greater than expected and outlooks that are more bullish than expected in Europe,” said Greg Bassuk, chief executive officer at AXS Investments LLC. “We’ve been urging investors to get out in front of that.”

EZU is up 16.7% year-to-date, compared with 12.5% for the S&P 500 and 14% for Europe’s Stoxx 600 Index. Investors added $5.9 billion to U.S. ETFs focused on European markets in May.

Following are EZU’s biggest holdings as of June 4:

NameTickerPositionValue (USD)Change in Position% of Total Asset Value
ASML Holding NVASML NA Equity502,280341 million04.9
LVMH Moet Hennessy Louis VuittMC FP Equity332,395263.3 million03.8
SAP SESAP GR Equity1.25 million174.6 million02.5
Siemens AGSIE GR Equity915,977151.5 million02.2
TotalEnergies SETTE FP Equity2.99 million144.4 million02.1
SanofiSAN FP Equity1.36 million142.1 million02
L’Oreal SAOR FP Equity301,656138.1 million02
Allianz SEALV GR Equity493,661131.3 million01.9
Schneider Electric SESU FP Equity645,023102.5 million01.5
Daimler AGDAI GR Equity1.02 million99.1 million01.4

©2021 Bloomberg L.P.

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