The ever-promising FTSE 100 is extremely close to the levels of five years ago, while other leading global stock indexes, such as the Euro Stoxx 50 and the S&P 500, showed much better dynamics. Five years ago (June 23, 2016), the British held a referendum on Brexit, at which they decided to leave the European Union by a majority of votes. Since then, the UK stock market, represented by the FTSE 100 blue-chip index, has rarely pleased investors with its dynamics.

Brexit has reduced the attractiveness of British companies in the eyes of investors. Today, the FTSE 100 continues to be close to the levels that preceded the referendum, while other leading world stock indexes showed much better dynamics.

The British index of mid-cap FTSE 250 companies showed slightly better dynamics than its older counterpart, but also noticeably lagged behind the Euro Stoxx 50 and S&P 500 indices.

The Vanguard FTSE Europe ETF Phenomenon (NYSE: VGK)

Investors continue to actively buy shares of European companies: first, they are cheaper than their American counterparts, if we compare financial ratios. And, secondly, they work in cyclical sectors that are the beneficiaries of the removal of lockdowns and the ongoing recovery of the global economy after the coronavirus crisis.

In one of the trading sessions last week, net capital inflows to the largest exchange-traded fund (ETF) focused on the European stock market amounted to $266 million, which is a record value since June 2017. Bloomberg writes about this, without specifying on what day it happened.

For example: now Vanguard FTSE Europe ETF (NYSE: VGK) with assets of about $25 billion

Earlier, the agency reported that for the period from the beginning of the year to May 27, inclusive, ETFs traded on US exchanges and focused on the European stock market attracted approximately $5.6 billion. This is a record capital inflow since 2015.