European large-cap ETFs suffer in March amid worsening macro environment

Data from TrackInsight

European large-cap ETFs posted outflows last month as Italy's political situation remains unresolved and the European Central Bank (ECB) adopts a more hawkish tone.

According to data from TrackInsight, the asset class reported outflows of €3.9bn over the month, reflecting investor concern over Italy's failure to form a government following the expected hung parliament on 4 March. However, what was not expected was Matteo Salvini's right-wing League party winning more votes than coalition partner ex-Prime Minister Silvio Berlusconi's Forza Italia, which only won 13.9%. Along with Salvini's 18% gain, anti-establishment party M5S posted stronger-than-expected results by winning 32% of the vote and becoming the country's biggest party. The situati...