“Specifically, within Europe, investors are all aboard the periphery train, and there’s now simply no margin for error,”  Obe Ejikeme, European equity and quantitative strategist, said in the article. “Spanish and Italian equities are preferred over those in the UK and Switzerland, while eurozone periphery debt is seen as the most crowded trade globally.”

Former PIIGS – Portugal, Ireland, Italy, Greece, Spain – economies have been among the best performing markets this year, with the exception of Greece. Year-to-date, the Global X FTSE Portugal 20 ETF (NYSEArca: PGAL) is up 12.4%, the iShares MSCI Ireland Capped Index ETF (NYSEArca: EIRL) is up 6.2%, the iShares MSCI Italy Capped ETF (NYSEArca: EWI) is up 12.1% and the iShares MSCI Spain Capped ETF (NYSEArca: EWP) is up 9.4%. On the other hand, the Global X FTSE Greece 20 ETF (NYSEArca: GREK) dipped 3.3% this year. [Prodigious PIIGS: These ETFs Soar, Gain Assets]

Looking ahead, 28% of respondents say they want to be overweight Europe over the next year, up from 23% in the previous month, while 14% say European equities are undervalued.

In contrast, U.S. equities are the least favored, with 18% of respondents saying they want to underweight the area, up from 9% in April.

For more information on the ETF industry, visit our current affairs category.

Max Chen contributed to this article.