Capital outflows from U.S. assets have lifted both European shares and the euro in 2025. For euro-based investors across every major region, this currency appreciation has trimmed several percentage points from equity gains when unhedged. Historically, a strengthening euro has weighed on returns—putting the benefits and costs of hedging squarely in focus for European investors. For advisors responding to evolving market conditions, MSCI’s indexes offer portfolio-building tools designed to help manage currency risk and support strategic investment planning.