The $74.4bn iShares Core MSCI World UCITS ETF (EUNL) experienced a sudden 5% drop in price shortly after US jobs data was released earlier this month on Deutsche Boerse. The incident triggered multiple stop orders, which exacerbated the decline. Despite the crash, other listings of the ETF across different exchanges remained stable and an investigation by Deutsche Boerse did not reveal any signs of suspicious trading, market manipulation, or rule violations.
Meanwhile, Cathie Wood’s Ark Invest has entered the European ETF market by launching three actively managed ETFs spanning innovation, genomics, and artificial intelligence. Wood’s success in Europe is being closely watched as he launched ARK after acquiring Rize ETF from AssetCo last September and engaged professional investors through a European roadshow despite concerns about its volatile track record and ‘FOMO-stock’ reputation from retail investors.
In Q1, European ESG ETF inflows dropped a staggering 94% to €7.1bn from €13.8bn in the previous quarter, accounting for only 16% of the total €44.5bn inflows. This shift reflects a broader investor pivot towards US and global developed market exposures despite general growth in European ETFs which saw assets reaching a record $1.92trn. However, ESG funds are experiencing a relative decline as investors seem increasingly disillusioned with their prolonged underperformance suggesting a potential crisis for ESG investing.
