ETF investors returned to the US in May after a period of net-selling.
According to data from ETFbook.com, the US-focused UCITS ETFs recorded positive net inflows for the first time in three months.
North American ETFs posted inflows of £2.5bn in the month.
Investor enthusiasm for Europe remained, adding £5.4bn to ETFs targeting the region. However, this was 53% lower than the three-month average.
“Relaxing signals in the trade dispute between China and the US impacted the ETF market in May. Investors turned more towards the US again,” said Stefan Kuhn, head of ETF distribution Europe at Fidelity International.
“Conversely, the tariff dispute between the US and the EU is intensifying again. It is quite conceivable that Trump’s renewed tariff threats against the EU are already affecting net inflows into European equity ETFs.
“Additionally, the markets in Europe have performed very well this year. Investors are asking themselves how much upside potential European stocks still have. Whether the ETF market remains influenced by macro-political developments is a key question for the coming months.”