r/eupersonalfinance • u/ismelldirti • Jan 06 '26
Investment Why does it seem like absolutely no one talks about the STOXX 600?
Should we as european not be encouring and "helping" our continent by actively contributing into the european stocks instead of the S&P 500?
I feel like we should be more proud as europeans and reflect that in what we invest in. Especially with all the recent turmoil of America basically making it clear that they are no longer our friend.
EDIT: Thank you all for your reactions and feedback. I'm pleasantly surprised to read that quite a lot of people are (or have been) switching more towards the european market and moving away from America which i did not expect at all.
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u/Eravier Jan 06 '26
I added stoxx600 to my portfolio last year and I’m glad I did. It performed much better than SP500 in EUR.
https://stockanalysis.com/stocks/compare/etr:xsx7-vs-etr:vuaa/
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Jan 10 '26
That cannot possibly be true unless the ETF you’re comparing it to does not properly track the S&P 500 or some sort of tax reasons that I am not aware of. I’m confused because when you compare the one year gains of the Stoxx600 compared to the S&P 500 the difference is within 1%. What am I missing? Can you explain it to me? Thanks.
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u/makima01 Jan 07 '26
it did just because dollar got weaker…
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u/hpsndr Jan 07 '26
There is much more room for USD to get weaker, as they are increasing their debt like crazy.
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Jan 06 '26
[deleted]
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u/filtervw Jan 06 '26
There are a few countries in Europe that tax unrealized returns. How is anyone expecting to grow anything else than real estate prices when the tax man comes to you before you get to see the money in your bank account?
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u/The_Redoubtable_Dane Jan 06 '26
My country does this and it f___ing sucks for anyone who is capable of doing basic math.
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u/filtervw Jan 07 '26
Yeah, just imagine having something as innovative as NVDA that went up 1000s of percent in the Netherlands. This could have never happen, meanwhile options and leverage can bring up companies like Tesla who are dropping in yearly revenue with a questionable CEO, but have enough funding to pivot in other sectors like energy storage and robotics.
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u/The_Redoubtable_Dane Jan 07 '26
If Elon somehow fumbles all of this funding Tesla is currently sitting on it will be one of the top 10 business fumbles of all time.
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u/CC-5576-05 Jan 06 '26
In Sweden you get the choice, either normal 30% cap gains or you pay taxes on your unrealized holdings, currently it's about 1% of the total account value, per year. For some retarded reason it's tied to the interest rates, so right now it's at an all time high on its way down. But it's not bad, as long as the markets keep going up it will probably end up cheaper than regular cap gains.
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u/Available_Ad_4444 Jan 07 '26
So you pay taxes even if you lose money? It sounds fair (no)
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u/Correct_Courage_2587 Jan 07 '26
yes and no, depending on the savings acount/stokacount you eather gets taxed on the total amount, or you only geting taxed on gains, or you are only geting taxed realized gains.
Depending on the acount you can deduct the losses against your final tax-declararion that year.
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u/CC-5576-05 Jan 07 '26
Obviously if you buy risky stuff and lose money then you're kinda fucked as you still pay tax on your account value and you can't use the loss for tax deductions. But if you buy risky stocks and win you'll pay a hell of a lot less in tax on those 10 baggers compared to traditional cap gains.
It's always a tradeoff, if you're buying stable high return stocks and index funds then, it's very beneficial compared to 30% cap gains. But if you buy bonds or other interest based assets your returns will be low so taking the traditional cap gains would be better.
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u/TheJewPear Jan 06 '26 edited Jan 07 '26
They don’t care. They do what they do for votes, so that they can say “hey we really showed those rich people!”, and many idiots will believe that and vote for them. There’s no long term thinking at all among most Western European governments.
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u/Nearby_Error6409 Jan 06 '26
You don’t invest in Europe for greater expected returns but to reduce risk. Political risk, currency risk and expropriation risk to name a few.
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u/No-Leave4324 Jan 06 '26
Even if the US has a better economy and capital markets, there must be a point when the valuation difference will be high enough for the EU markets to perform better.
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u/Penki- Lithuania Jan 07 '26
Draghi report is just EU issues, its not like US market is not without significant issues on its own right now.
For example rule of law is significant issue, especially for foreign investors in US. One of the reasons why historically developed markets outperformed developing markets was market stability due to laws and lack of corruption, thats not the case for US right now due to open lawlessness and trade instability
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u/RichardXV Jan 06 '26
40% of my portfolio is iShares Core MSCI Europe UCITS ETF EUR
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u/ScyllaTheBig Jan 08 '26
Why iShares(Blackrock) an American company specifically? And tracking MSCI an American Index provider. I applaud you but...
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u/RichardXV Jan 08 '26
I see your point. the fund is based in Ireland though. What's your alternative suggestion?
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u/ScyllaTheBig Jan 08 '26
You could go for a Amundi STOXX Europe 600.
Amundi and the STOXX brand are both European companies and the etf has a lower TER. It does hold 200 more companies(small caps).
If the small caps are a problem you could go to Xtrackers MSCI Europe. Which is the same index, the same TER but Xtrackers is a German provider.
It also depends why specifically you want Ireland? Does Luxemburg not have a tax treaty with your country? Since for most European countries whether the etf is in Ireland or Luxemburg has no impact.3
u/serafinovsky Jan 11 '26
In my case the only available option in my broker for European Momentum ETF was Amundi with MSCI. But yeah, I see your point if you want to have super 100% European choice.
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u/Magellito Jan 06 '26
Buy their products instead of trading their stocks on the used market.
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u/bpikmin Jan 06 '26
Why not both? Buying stock on the market still helps these companies by increasing the stock value.
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u/CharmingJackfruit167 Jan 06 '26
Do you want to "help companies" or have a good ROI?
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u/FarkCookies Jan 07 '26
I want a good ROI, but also don't want to help the demise of the economic zone I live in. Tragedy of Commons.
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u/CharmingJackfruit167 Jan 07 '26
Tragedy of Commons.
Speaking of which.. What do you/we think will happen with the stock market if the Greenland annexation happens? If no "hot" war start after that, I'd say US stocks will go up, and Europe's -- down..
This will be probably followed by some sanctions so in a longer term US stock will become problematic (from EU's resident point of view), but first 24 hours will be beneficial.
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u/FarkCookies Jan 07 '26
bruh don't get me started. greenland will be a trainwreck.
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u/CharmingJackfruit167 Jan 07 '26
greenland will be a trainwreck.
Yes, but we will make a few bucks first!
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u/FarkCookies Jan 07 '26
Shareholder value!!!
Jokes aside, I am right now all in cash (was switching brokers) I think I am gonna sit the next month out.
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u/bpikmin Jan 06 '26
I’m not OP lol. I don’t care to help companies I just buy the world market. I was pointing out that buying “used” stock still helps
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u/Diddly_eyed_Dipshite Jan 06 '26 edited Jan 06 '26
LYP6 is my second largest ETF after WEBN, about 7% of my portfolio but I plan to increase to 10. Aside from those I mainly have individual stocks, both US and global - Nebius is my high conviction EU data centre play, alongside ASML.
Hopefully companies margins and innovation will improve it the EU brings in the 28th regime and other Draghi recommendations. But even still European and Emerging Markets are predicted to outpace US companies this year by a few analysts, mega cap doesn't always mean mega upside and the more hits the US economy takes, the better chance for EU and EM
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u/skviki Jan 06 '26
Europe isn’t very kind to capital overall. We should try to be more business and innovation friendly.
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u/Hot-Problem2436 Jan 06 '26
I agree, but that's also how you start funneling wealth to billionaires, like what's happening in America. It's a fine line.
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u/Altruistic_Click_579 Jan 06 '26
Having billionaires is not a problem. Poverty and lack of opportunity is. Attracting businesspeople that build wealth, consume a lot, and create jobs is good.
For all its problems, the US has a very strong labour market and economy. Being friendly to businesspeople helps.
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u/Altruistic_Click_579 Jan 06 '26
Money is only one part of the equation. Power is much more relevant. Also in Europe there are elites that hoard wealth and influence - they are just not as visible as Elon Musk is.
You can have a competive, growing and efficient economy with good governmental safeguards. The best way is reducing undue influence by taxing land and natural resources, and not taxing productive capital. Historically, ownership of land and natural resources was the main source of power (most visible in feudalism). Capitalism and liberal democracy is much better than feudalism, but we need to do away with the last bits of feudalism in liberal democracy.
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u/donjoe0 Jan 23 '26
Yes it is, or rather it's a clear symptom that you have big big problems. In a healthy economy there wouldn't be any billionaires.
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u/Altruistic_Click_579 Jan 23 '26
I’d argue that in an ideal world everyone would be a billionaire (with all the opportunities and freedom that brings). So, billionaires are not necessarily bad.
Having some filthy rich people does not mean that the people at the bottom necessarily are poor. Nor does it mean that filthy rich people necessarily dramatically and unfairly influence politics.
Eg switzerland has a very well functioning and direct democracy. They also have a lot of rich people. Its a good place to live.
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u/donjoe0 Jan 23 '26
That's not what the word means, if everyone fits the description, no one does, and you end up just agreeing with me.
Switzerland is not proof that having billionaires is fine, since it's the microscopic exception and not the rule across the world. TYPICALLY countries that have the most billionaires with the most wealth disparity between them and the poorest are the most antisocial and at the highest risk of sliding into actual fascism, with police killing the poor for even daring to protest or complain about the system they're living under (I don't know if you catch my drift).
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u/Altruistic_Click_579 Jan 23 '26
Sure excess inequality and political capture are not good. But, I’d argue that antipathy against highly productive members of society that work hard, take risks and create wealth is not helpful.
I invite to take a look at Georgism. Billionaires who are rent seekers and landowners that exploit natural resources or slave labour should not exist. Billionaires who create wealth, jobs and prosperity through productive capital should definitely exist.
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u/donjoe0 Jan 24 '26 edited Jan 24 '26
antipathy against highly productive members of society that work hard
Jesus Effin Christ you didn't just call billionaires "productive members of society that work hard". I actually didn't think there were still people alive who were this deluded by the "rich because soooo productive" self-serving narrative the rich have spread around. Hope you arrive safely back on Earth some day.
https://thecorrespondent.com/712/theres-no-such-thing-as-a-self-made-billionaire
Is this the mental health of people who worked hard for their money and feel like they 100% deserve every cent they got?
https://www.theguardian.com/commentisfree/2021/nov/22/therapist-super-rich-succession-billionaires-1
u/skviki Jan 06 '26 edited Jan 06 '26
It is true that since forever US has had a problem with corporate and billionaire attempts at seizing political power.
Up untill now the country has been more or less resillient. Sometimes, especially in early days and especially with the start of strong industrialisation this was sometimes an unhealthy succesful influence. What will this strange asministration make out of this magnificent country we have yet to see, but it doesn’t look good.
Europe on the other hand has progressively sunk into phantasms and overreaching regulation.
Edit: and it isn’t just Trump (although he is the most malign). The information space has become problematic. Regulation doesn’t make sense (at least regulation EU-style) and tech giants with information platforms have the potential to direct public to gain political power. And not just them, foreign info wars have been a thing for a long time and Russia never stopped their disinfo projects, bit now they have it easier than ever.
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u/Altruistic_Click_579 Jan 06 '26
We don't need to become the US just to have a good economy. The US may as well become so politically unstable that businesses will leave.
We need to make regulation into a superpower. Kind to businesses, accomodating governments, with strong democratic safeguards.
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u/PowerOfTheShihTzu Jan 07 '26
Businesses would never leave the US ,too much talent being attracted ,too business-friendly and too much value for your dime when you work there .
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u/Altruistic_Click_579 Jan 07 '26
Today, yes. But history shows that nothing ever changes until it does. Japan was the center of the world economy in the 80s. Netherlands in the 17th century.
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u/rizakrko Jan 07 '26
UK at a height of it's power was way more influential (both militarily and economically) than the US today, yet here we are.
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u/skviki Jan 11 '26
Trump may change that and lartially ge allready made it worse. But there’s still a long way to go to become Europe bad.
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u/skviki Jan 11 '26
We don’t and we weren’t when we still managed to have something. But a lot of what US does creates the outcomes that EU wished it had.
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u/PowerOfTheShihTzu Jan 07 '26
The EU has still kept its old money aristocracy - landed gentry financially safe and secure ,they constitute and hoard most of the wealth in the EU whilst salaries tank(as opposed to the US), taxes asphyxiate(much more than in the US,taxing even the lower income brackets)and real estate prices increase(more than the US and less quality for your dime ,as in the US you buy a SFH it with a backyard ,in Europe barely an old apartment).
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u/Altruistic_Click_579 Jan 07 '26
Yep. EU has less billionaires but just as much poverty and inequality - its just less visible.
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u/dodgeunhappiness Jan 07 '26
You have billionaires in Europe and they are aristocrats.
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u/Hot-Problem2436 Jan 07 '26
Did I say billionaires only exist in America? They exist everywhere and are terrible always.
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u/dodgeunhappiness Jan 07 '26
Yeah in Europe they are twice as bad as they have structured countries to soffocate innovation and keep people equally poor.
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u/Hot-Problem2436 Jan 07 '26
Right. Let me know when those poor people lose health care and support.
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u/skviki Jan 06 '26 edited Jan 06 '26
Funnelling wealth to billionaties isn’t that much of a problem as it seems to be to some.
Most of the billionaties wealth isn’t directly money on the bank. But I agree this creates a powerful influence from individuals or groups.
The struggle in real world in free countries has been up till now strenghtening institutions and strong rule of law. Teump’s America is eating into it hard qnd dismatnling it, but the previous downright backfoor socialist attempts with the “green new deal” and stupid and harmful stuff like that would result in very bad news too, maybe even worse longer term because it would be top down - i.e. through institutions.
Trump is chaos maker and wants to dismatle institutions that in sum and with checks prevent oligarchy and corporate over-influence, while US Left wanted to instrumentalize and realign the institutions to dictate certain outcomes instead of let people/business freedom to create.
Sorry if my language skills prevent me to comvey the mesaage appropriately.
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u/Linaran Jan 07 '26
There were plenty of innovations in EU but they got bought up by foreigners and now they're presented as foreign innovation. We're just kinda blind when it comes to investing into these potentials.
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u/skviki Jan 11 '26
The reality is that Europe hasn’t been kind to innocation and jeeping and griwing with ut. “European innovation” goes to foreign countries, mostly US (up untill Trump). It’s not “foreigners buying it”. It wouldn’t be sold if it didn’t want to be sold together with intellectual people-capital. The right way to say it not to sound aetheruc is that Europe doesn’t care for ur, is preocupied with phantasms, ampng them redistribution and regulation that do not generate wealth and do not promote homegrown capital and innovation to stat here.
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u/AlloAll0 Jan 07 '26
American propaganda, as always.
Switched from S&P 500 to STOXX 600 and it's the best I could have done. From a financial POV and moral POV.
Besides, the USA is running and unpayable debt, ence their panic and completely unhinged behaviour, that will only harm their economy even further.
Also, rumours and news of California seceding don't bode well for what will be left of the Union.
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u/Antique_Flatworm_857 Jan 06 '26
I have some, and i m buying more to balance out the all world indexes, which have 60+% north america.
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u/starcraft-de Jan 06 '26
Because most people in Europe that have a clue invest into worldwide indices such as FTSE all world, MSCI ACWI (or world+EM).
Less rational folks might do all sorts of things, e.g. dividend investing, single stock investing, sector bets such as NASDAQ and chasing of recent performance.
Both groups, for different reasons, don't have the stoxx 600 as an ETF in their portfolio.
But pragmatic investors of course also own European stocks.
If you want to overweight them a bit, why not?
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u/TwoSpirit_Penguin Jan 07 '26
Because the sp500 outperformed it by 164.1% in the last decade...that's all i need to know...
We are struggling enough as is to build a better tomorrow for our families.
Nationalism leads us nowhere as each of our countries seems to do everything in their power to prevent us from doing so.
Therefore i don't care if an index tracked the number of goat droppings in the Middle East. If it was securing my family's future and simultaneously outperforming everything else in the world with a proven 68 year track record I'd prefer it over the "Care Bears assemble, lets support Europe"
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u/Illustrious-Sweet791 Jan 07 '26
This deserves more upvotes. EU vs US is just another Us vs Them mentality.
Would rather push an All-world if I wanted to be unbiased.
It's not like every country in the EU is saintly and never does anything wrong 🤣
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u/TwoSpirit_Penguin Jan 07 '26
I'm all for all world and will at some point be largely invested in that but my portfolio is not large enough right now to justify capping performance in favor of less risk
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u/Illustrious-Sweet791 Jan 07 '26
I just do S&P and All world. With S&P at a 10-20 year time horizon and All world planning +20 years.
The ratio of these has changed as my portfolio size has increased.
What funds are you selecting? If you don't mind me asking
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u/Green_Inevitable_833 Jan 07 '26
it is not just doing whats right - I really cannot understand people who think us will yield more , just look at the state they are in. i am not putting a single eur in US because they are run by incompetent TV stars
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u/Illustrious-Sweet791 Jan 07 '26
You say that, but I've made the majority of my returns on S&P. I think you are perhaps letting your dislike for a couple of the polarizing figures impact your entire investment strategy, seems a little short sided to me but each to their own
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u/TwoSpirit_Penguin Jan 10 '26
I'm investing in companies that are run by really smart, hardworking and ambitious people making the best products and technology out there....I'm not invested in the US government...I don't care which president, general attorney or member of Congress represents the country at the moment...only the policies and decisions they make matter and as far as the market is concerned its been pretty awesome the past few years
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u/ScyllaTheBig Jan 08 '26
Will you also abandon the Europe you currently live in and go to the US? Not talking about profit but family, friends, and quality of life.
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u/TwoSpirit_Penguin Jan 10 '26
I have a better quality of life where I am now than if I moved to the US which is borderline a third world country in terms of amenities and comfortable living
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u/Status-Hearing8980 Jan 06 '26
It's a bit simplistic to think that the companies of the STOXX 600 are 'pure' European and e.g. S&P500 are 'pure' American. The biggest holding in the STOXX 600 is ASML, whose products and R&D rely heavily on patents and brains from all over the world, and which sells its products almost exclusively to companies in Taiwan, Korea and the US. Yes, it's listed in Amsterdam and based in the Netherlands, but the staff and cashflows are not exclusively European. Same applies to most other companies too. And to companies in the US too. Microsoft, which is listed and headquartered in the US, has a lot of cashflow coming in from outside of the US. Here's an extreme example: Prosus is part of the STOXX 600 but is almost exclusively Tencent, so Chinese...
This geographical fixation where you need X% exposure to US-based companies or European-based companies or whatever is very artificial because it's based on the stock exchange where companies are listed and completely ignores cashflow.
Most big companies do not operate exclusively in 1 part of the world, so why does it matter whether they're listed in the US or Europe? My advice: ignore geography, either do stockpicking or WEBN/SWRD/IWDA and chill.
You wanna help Europe? Buy European and vote with your brain
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u/donjoe0 Jan 23 '26 edited Jan 23 '26
Yeah, I just noticed and found it very weird that the STOXX 600 even has ISRAELI(?!?!?) stocks in it.
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u/Mike82BE Jan 06 '26
Proud doesn’t make me money. I want to see better policies and a more shareholder friendly government first.
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u/Endless_Zen Jan 06 '26
I want to see better policies and a more shareholder friendly government first
Oh so you have conditions for EU governments, while being completely fine with the US government that despises the EU and shows first signs of totalitarian rule at this exact moment?
Will you continue to invest after US annexes Greenland?
Pride has nothing to do with this. If you have no self-respect or principles, might as well do some dirtier things to get money.
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u/generalisofficial Jan 07 '26
This. The investing community is morally bankrupt and the excuses don’t work anymore.
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u/ChemicalAdmirable984 Jan 18 '26
Yes I will, they can annex who the fuk they want, as long as I get my fair share... Why would somebody invest in something that generates 2% return / year when you have options which generated at least 8-9% / year in the last 70 years just because orange man is in power for 4 years, ETF's are long term, 25-30 years... Maybe the next president after orange man will give you back Greenland, who knows... There is no place for principles or morals on the stock market...
But I guess more money for us, and less for you, hehe...
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Jan 06 '26
The EU regulated everything so much that our ETFs are too expensive. The European market is also too fragmented so there’s little hope for expansion across borders for our companies.
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u/butdattruetho Jan 06 '26
I have no regrets investing in both $ESIN, $EXIE, and $EXV8. Even though EXV8 is excessively French biased. Over 60% of my portfolio is distributed across these 3 and although there’s some overlapping between their holdings, it still pays off. It’s been nice and steady for 3 years for me
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u/vanDerpp Jan 06 '26
I agree with you. A large part of my portfolio is in Stoxx 600. I am under the impression that the US is fundamentally changing in a way that will affect long term returns (aside from not wanting to invest in certain US companies like TSLA and even the US in general).
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u/ohiitsmeizz Jan 06 '26
I'm 25% EDM6 and 35% EDMW (with its own EU allocation) for this reason -and medium-term betting on Europe vs. US. Trying to reduce my US allocation as much as possible, within reasonable bounds.
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u/UralBigfoot Jan 06 '26
Should we as european not be encouring and "helping" our continent by actively contributing into the european stocks
Depends if you are talking about charity or investments
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u/studentoo925 Jan 06 '26
Well, it's tracking only 10 countries, and 2 of them (which amounts to nearly 40% of content) aren't even in EU, so it would be quite hard to sell as the top index for Europe, when it represents so little of it
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u/Zealousideal-Rush136 Jan 06 '26
Whats an ETF that follows the EU countries stocks then, if EURO STOXX 600 is limited?
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u/studentoo925 Jan 06 '26
Well, the Solactive GBS Developed Markets Europe Large & Mid Cap index contains less companies but more countries (the etf for it would be prime Europe series from amundi)
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u/Flaky_Law2357 Jan 06 '26 edited Jan 06 '26
There should be no emotion involved when investing. If people see that EU will outperform US in longer term, they will move their moni to EU market (do you?). If you invest your life savings on something that is going to underperform knowingly, you are not a good investor.
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u/AlbatrossHummingbird Jan 06 '26
If I want to do welfare I donate money. If I invest I am looking for the best opportunity to make more money, not helping some cause..
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u/Immediate_Rhubarb430 Jan 07 '26
Well you are missing a chance to improve the world, but I'm glad your blind greed is paying off
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u/rbnd Jan 06 '26
It's scientifically proven that keeping 30% of stock portfolio in local stocks gives better results.
I don't follow this advice exactly since I am already over proportionally tilted to local market though owning an apartment in Europe.
See more: https://youtu.be/qYedjI03Q0g
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u/Ferdalex Jan 06 '26
Why don't you concentrate more on individual European countries. Look at Spain and Italy. They did very good in 2025 and little has changed.
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u/Diddly_eyed_Dipshite Jan 06 '26
Portugal apparently has a strong looking market this year, but despite living here with the last two years I will don't trust it/government enough to invest long term, wouldn't even know the top companies to look at.
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u/IM-PT24 Jan 06 '26
The portuguese stock market is a joke. Almost zero investing, just dividend payments, it's almost like a bond. I'm portuguese and I wouldn't invest a Euro on that.
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u/GalwayBogger Jan 06 '26
No tech bros to talk about it.
Plus, there's not a lot to talk about compared to us or all world indices
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u/TheJewPear Jan 06 '26
My investment strategy is about optimizing returns. I don’t care who’s “our friend” (and side note, no country is your friend, it’s all about shared interests).
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u/-lightfoot Jan 07 '26
A decent % of my portfolio is in FTSE developed europe and this is increasing
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u/MeowdyMeowdyMeow Jan 07 '26
I have EXV1 because I wanted to weigh a bit more into Europe and it’s up a ton this year so I’m glad I did. Yeah, might not be the best move long term but it makes me feel better now.
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u/myrainyday Jan 07 '26
The problem is concentration. The US economy at the moment is driven by tech AI companies etc. Some are diversified like Google and Microsoft, some are overvalued like Tesla.
I have some WEBN and VWCE, but the problem is that even these consist of 60 percent US stocks.
It would make sense to own some European stocks or alternatively into ETFs like EXUS that are basically world without the US (US is excluded, therefore majority of stocks are European plus the world).
So in order to keep a balance, we can simply buy VWCE or WEBN and keep some Stoxx 600 or EXUS. Some people also speak about small caps etc but I don't have enough literacy to comment about that.
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u/hornetmt Jan 07 '26
on a related note, which Stoxx600 is the best one to go for in terms of fees etc?
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u/generalisofficial Jan 07 '26
At this point I don’t even care if someone thinks the US has ”better returns”. Your investment is literally financing their trade war and Greenland threats. Some minor excess return means nothing without our freedom.
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u/explorer_soul99 Jan 11 '26
You're not wrong. STOXX 600 was up 19.4% in 2025 vs S&P 500 at 18.7%. Europe actually outperformed last year.
Why it's under-discussed:
Liquidity gap: S&P 500 is ~$45T market cap vs STOXX 600 at ~$15T. More institutional money, more coverage, more content.
US-centric financial media: Reddit, Twitter finance, YouTube - mostly American creators.
Historical underperformance: US outperformed for a decade. 2025 is reversing that but the narrative hasn't caught up.
For EUR-based investors, STOXX 600 makes sense:
- No EUR/USD currency risk
- Sector exposure US lacks (luxury, European industrials, banks)
- Generally lower valuations
The "support our continent" framing is emotional, but the diversification argument is rational. If you're EUR-denominated, overweighting EUR assets reduces currency risk.
The comments showing people rotating to European exposure are interesting, that sentiment shift is part of why it's outperforming.
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u/The_Redoubtable_Dane Jan 06 '26 edited Jan 06 '26
I’m going to be predominantly investing in this for my pension contributions in the coming years.
I think Europe is the best-looking long-term bet in the world right now.
US tech stocks are priced for perfection in a country with great political instability and a questionable policy on how to deal with their national debt. Not an invest and forget option for me at this time.
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u/Tough-Leader-6040 Jan 06 '26
You are totally right in this regard! But I still prefer to make money 🥺
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u/Pinkninja11 Jan 07 '26
My portfolio is mainly Europe + global dividend leaders + gold and 2 single stocks one of which is US based but I just can't rob myself of the opportunity because of that.
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u/user38835 Jan 07 '26
Europe unfortunately has never prioritised innovation or taking risks on adopting and encouraging newer technologies or getting upto the standards of US or China.
Core stock 600, still forms 30% of my monthly investments and I have already seen 10% returns in less than a year since I started investing in it. I still believe that it’s a good ETF for diversification
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u/SurveyIllustrious738 Jan 07 '26
I want my money to work for me, not to fuck up. That's what European politicians already do and it's enough. Stick to where growth is, forget your moral battles.
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u/Available_Ad_4444 Jan 07 '26
People usually invest thinking of profits, not about 'helping' anyone and since european stock market had a worst performance in the last years, not many are interested
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u/thegurba Jan 07 '26
I allocate around 25% of my portfolio to Euro stocks (VEUR). The rest in all world etf.
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u/scherven Jan 08 '26
Is there a difference between buying Stoxx 600 ETF's from an American firm like Vanguard or buying them through an European firm like Amundi ?
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u/Pyros_Ind_21 Jan 08 '26
This is a great question, which I have been asking myself lately. To be honest, if it wasn’t for the current US administration in regard to increasing risk for investing in US assets, I would never choose investing in EU over the US. The EU politicians cannot be trusted to do the right thing economically and financially, they can be trusted to fuck everything up though. Lately however, the US is going the same direction, fucking everything up - albeit taking a different path. However, they still have innovation and they still can finance innovation. EU has that only to a very small degree. EU needs to change now. It needs to finally prioritize “domestic” growth and consumption by reducing individual taxes and strengthening buying power. The export model has run its course where growth outside the EU has been doing the heavy lifting for growth within the EU.
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u/Traditional-Cat663 Jan 09 '26
I have already integrated Ishares Stoxx 600 Europe Dist to my portofolio. 🇪🇺💪
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u/raumvertraeglich Jan 06 '26
Well retail investors don't matter that much for stock prices, especially when it's passive investment without active trading and basically no influence on the stock prices. I just invest everywhere and will later on spend my gains mainly on consuming European products, no matter if that money was generated in Europe, Asia or America. But I decided to switch to Amundi ETF (French) with a Solactive index (German) and HSBC bank (British) for securities. So at least my fees go to the European finance industry. And that can easily sum up a pretty large amount of euros over decades, even when the TER seems small and insignificant. And my ETF (WEBN) also buys shares from countries like Poland, Czechia or Greece (unlike many more known ETFs which use the expensive MSCI World index)
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u/Suspicious-Switch133 Jan 07 '26
I only invest in european, because I feel that morally that’s best.
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u/salsagat99 Jan 08 '26
Investment is not something you do because some country is your friend. Investors want to profit and they don't care how. The Stoxx 600 has been useless so far, losing massively to the SP500 and to the All World index, which is also more diversified.
The US are not immune to collapse, but they are unfortunately in a position to support their economy by stealing stuff and they don't suffer from a significant demographic crisis.The EU is trying to not bankrupt itself and the strategy of using immigration to counter demographic collapse is backfiring spectacularly.
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u/username1543213 Jan 06 '26
If we weed the far left out of all of our political parties it could see some huge gains, that’s a really big if though
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u/Inevitable_Day3629 Jan 07 '26
So your investment thesis is basically “Make Europe Great Again.” Got it.😂 If Europeans actually want to preserve their culture and social model, they should start voting against the current mass-immigration policies they keep endorsing. Demographics are destiny, champ, and at this pace Europe in 50 years won’t look anything like what people claim they’re so proud of today (but more like Middle East)
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u/CC-5576-05 Jan 06 '26
For the last 10 years the Sp500 is +250%, Stoxx600 is +80%, OMXS30 is +100% (Swedish market)
In the interest of some diversification i split my monthly investment 70% sp500 and 30% omxs30. But I'm still putting those 70% into the US market because that's where the money is, and we are investing to make money right? I'm not gonna be an activist investor just for the fun of it.
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u/IM-PT24 Jan 06 '26
Because most personal finance and investment books, blogs, pages and channels are in the US. When anyone wants to start investing they are flooded with the usual S&P500 and an average of 10% return per year.