Most of the money flooding into European stock funds this year is going into large-capitalization funds, but investors would do well to consider small-cap European stocks too, says Mark Luschini, chief investment officer at Janney Capital Management.

European stock mutual funds and exchange-traded funds have enjoyed an inflow of $11.9 billion since July 2012, when European Central Bank President Mario Draghi's promised to do "whatever it takes" to defend the euro, according to research firm Lipper, The Wall Street Journal reports.

And nearly 74 percent of the money going into European stock funds this year is devoted to large-cap funds, according to Morningstar.

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It's understandable that investors would start with large-caps as the eurozone economy starts to recover, Luschini tells The Journal.

But with Europe emerging from recession, "it makes sense now for investors with a large-cap bias to tilt more of their portfolios to smaller and more nimble companies that are well-suited to take advantage of Europe's recovery," he states.

The eurozone economy grew 0.3 percent in the second quarter from the first quarter.

"These [small-cap] stocks were hit harder by 2008's global financial crisis and 2011's economic slowdown, so they've got more upside potential as markets stabilize," Luschini notes.

To be sure, concern over the possibility of a U.S. attack against Syria and anticipation of a tapering of quantitative easing by the Federal Reserve are currently weighing on European stocks in general, Richard Hunter, head of equities at Hargreaves Lansdown, tells Bloomberg.

"Until such time that either or both of these twin concerns are resolved or at least addressed, there is likely to be a continuation of risk aversion from investors," he explains.

Editor’s Note: 5 Reasons Stocks Will Collapse . . .