European investors have historically been underexposed to US stocks, but market flows and client sentiment suggest growing interest in US equity and AI-related opportunities.
Key takeaways
01.
European portfolios remain underweight US stocks
European portfolios held less exposure to US stocks, compared with global benchmarks.
02.
Investor demand for US equities is accelerating
However, appetite for US stocks has increased among EMEA investors.
03.
Client sentiment suggests the trend may continue
BlackRock’s EMEA client polls signal this trend might continue.
European portfolios’ underexposure to the US has left them 13% less exposed to artificial intelligence (AI) and the digital mega force, potentially limiting their participation in AI-related opportunities.
Source: BlackRock Investment and Portfolio Solutions EMEA, BlackRock Aladdin, Morningstar, as of 28 February 2026. Portfolio allocations based on a sample of 155 European-domiciled medium-risk multi-asset portfolios.
However, appetite for US stocks has increased among EMEA investors
Research shows European portfolios have been structurally underexposed to the US stock market. According to BlackRock, the average European portfolio had a 14% lower allocation to US stocks compared with the MSCI All Country World Index (ACWI), a widely used global stock benchmark.
Chart 1: European portfolios have significantly less exposure to US stocks, versus the MSCI ACWI
• Average European moderate-risk multi-asset portfolio: 48% exposure to US stocks
MSCI ACWI: 62% exposure to US stocks
Source: BlackRock Investment and Portfolio Solutions EMEA, BlackRock Aladdin, Morningstar, as of 28 February 2026. Portfolio allocations based on a sample of 155 European-domiciled medium-risk multi-asset portfolios.
European portfolios held less exposure to US stocks, compared with global benchmarks
Last year, investors put more money into EMEA-listed exchange-traded products (ETPs) providing exposure to European stocks than into those tracking US stocks. This year, that trend is reversing. US stock ETPs are leading, with $30B of net inflows, already about 75% of last year’s full-year total.
Chart 2: Investor appetite for US stocks has accelerated this year, while demand for European stocks has stalled
• US equity ETPs (2026 YTD): $30B• European equity ETPs (2026 YTD): $19B• US equity ETPs (2025): $39B
European equity ETPs (2025): $73B
Source: BlackRock and Markit, as of 16 June 2026
BlackRock’s EMEA client polls signal this trend might continue
BlackRock frequently polls investors on where they intend to add or reduce exposures. At the start of the year, European stocks had a clear lead, with a 46% gap versus US stocks. Since then, sentiment toward US stocks steadily improved, turning positive in April. By June, the gap had narrowed to just 3%, showing that US stocks are rapidly catching up with European stocks in terms of popularity.
Chart 3: Sentiment for US stocks is catching up with European stocks
• 46% sentiment gap at the start of the period• 3% sentiment gap by June
US stock sentiment turned positive in April
Source: BlackRock, as of 10 June 2026. Results based on EMEA survey submissions between 10 December 2025 and 10 June 2026. Figures are net, based on the proportion of clients planning to add minus the proportion planning to reduce exposure.
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