How the Largest Europe-Domiciled ETFs Performed in 2024

Morningstar evaluated the performance of the largest Europe-domiciled ETFs in 2024, highlighting stock, bond, and active ETFs. European equities rose modestly by 4.41% over the year, while bonds fell 2.30%. Globally, stocks performed strongly, gaining 18.90%, although bonds showed a slight decline of 0.11%. Key stock ETFs stood out; Invesco S&P 500 delivered remarkable returns of 27.15% over the year, while iShares Core MSCI EM IMI lagged at 9.13%. Other top performers like iShares Core S&P 500 and Vanguard S&P 500 exceeded average fund performances for their category over the same period. Similarly, global large-cap blend equity ETFs such as iShares Core MSCI World and Vanguard FTSE All-World outpaced category averages despite slight losses in December. On the bond ETF side, iShares J.P. Morgan $ EM Bond gained 7.88%, leading its category, whereas iShares Core € Corp Bond turned in the weakest performance, losing 0.18%. Examining actives, the JPMorgan US Research Enhanced Index Equity (ESG) reached 26.71%, outperforming the average for US large-cap blend equity funds. Active ETFs coupled lower fees and tax efficiency with portfolio manager-driven strategies, spotlighting performers like PIMCO US Dollar Short Maturity and JPMorgan Global Research Enhanced Index Equity (ESG). Ultimately, the data captured the wide-ranging performance of ETFs in Europe, underscoring winners in both equity and bond categories. Investors are encouraged to examine the metrics carefully, appreciate the distinction between active and passive ETFs, and seek professional advice when making investment decisions.