European stocks and the related exchange traded funds have not been immune from this year’s downside in global markets. Just look at the Vanguard FTSE Europe ETF (NYSEArca: VGK).

VGK, one of the largest Europe-focused ETFs trading in the U.S., is off nearly 18% year-to-date and is experiencing massive outflows this year. This year, European stocks have been hindered by geopolitical risk and trade fears.

Europe has been among the least loved areas of the global markets. According to Bank of America Merrill Lynch, Europe equities experienced 25 straight weeks of fund outflows and was the only region recording meaningful outflows this year through the middle of the third quarter.

“The Vanguard FTSE Europe ETF has given up $2.16 billion in outflows this year, the second-worst year of redemptions since the fund’s launch in 2005,” reports Bloomberg. “Only 2016 saw a faster exit by investors, according to data compiled by Bloomberg.”

What’s Next

VGK, which had $14.2 billion in assets under management as of Nov. 30, 2018, follows the FTSE Developed Europe All Cap Index. The fund holds nearly 1,350 stocks.

The ETF “holds stocks of companies located in Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy,  the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom,” according to Vanguard.

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