Observers showed concern over Europe’s financial system, notably the vulnerability in southern Europe, as bad loans have weighed down balance sheets at European banks. Bank margins in the Eurozone are also being pressured by negative overnight interest rates.

Furthermore, the weaker economic data across the Eurozone has caused more investors to turn back to the stronger U.S. growth prospects. Citi research revealed investors injected $27.5 billion back into U.S. equity ETFs in May.

The iShares Core S&P 500 ETF (NYSEARCA: IVV) was the most popular ETF play in May, attracting $5.4 billion in net inflows. On the other hand, the iShares MSCI EMU ETF (NYSEArca: EZU) was the third least popular pick over May, experiencing $1.3 billion in net outflows.

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