European Equity Rotation Gathers Pace as Regional ETFs Post 23% Twelve-Month Gains
Investors reallocating away from concentrated US megacap exposure are finding valuation support and earnings breadth in Europe, while Berkshire's 658% increase in its Alphabet stake underscores selective conviction in US large caps.
Capital is rotating into European equities, with one widely held Europe ETF up 23% over twelve months as investors seek diversification away from a heavily concentrated US index complex. The move is being driven by relative valuation, improving earnings breadth and developed-market flows tracked by broad ex-US vehicles such as SPDW. At the same time, Berkshire Hathaway's decision to lift its Alphabet share count by 658% in a single quarter demonstrates that the rotation is discriminating rather than wholesale — quality US large caps at reasonable multiples still command institutional capital.