News Round-up: The promise and pitfalls of Euronext’s ETF platform
Euronext’s new ETF platform is a welcome effort to address trading fragmentation and has been positively received for its potential benefits to retail investors. While the industry is broadly supporting the trading layer of the plan, uncertainty looms large over the increase in complexity and reintroduction of fragmentation, especially if it undermines the dominant ICSD model that streamlines ETF settlement across borders. While the benefits for retail investors are clear, the platform’s overall impact remains limited for now with only a small share of ETF flows currently routed through Euronext. Read the full story here.
Next up, recent ETF flow data suggests the well documented rotation from US to European equities may be losing steam, possibly due to the ‘TACO’ trade - the belief that Donald Trump often softens his initial policy stances. In the four weeks to 6 June, European investors allocated $3.3bn to US equity ETFs, outpacing the $2.2bn allocated to European equities. This marks a reversal from earlier in 2025, when Trump’s erratic tariffs and fiscal plans dented confidence in US markets. Now, easing trade tensions and questions about Europe's upside potential have shifted sentiment back toward US equities. Toby Lawes has the full story.
Finally, BlackRock has launched a Plan d’Epargne en Actions (PEA) compliant ETF that offers synthetic exposure to the S&P 500. The PEA is a French tax-advantaged investment account available to French residents. The iShares S&P 500 Swap PEA UCITS ETF (SPEA) tracks a euro-denominated version of the S&P 500 via swap-based replication, allowing exposure to US equities while remaining PEA-compliant. The launch extends BlackRock’s PEA-compliant ETF range after it launched a swap-based MSCI world ETF that was PEA eligible in April last year. Read the full story here.
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