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The Best and Worst Performing Global Equity ETFs of 2025 (So Far)
- Alpesh Patel
- Jun 1
- 4 min read
Updated: Jun 2
A Year of Surprises in Global Markets
As of May 2025, global equity markets have delivered a mixed bag of performances. Some nations, like Poland and Austria, are riding high on double-digit gains, while others—including traditionally dominant markets like the U.S. and Japan—are seeing tepid or even negative returns.
A recent chart from Visual Capitalist using YCharts data (accessed via Bilello.Blog) reveals just how uneven this year’s equity ETF performance has been across geographies.
Whether you're a retail investor, fund manager, or ETF enthusiast, understanding these divergences can help shape smarter global allocation strategies.
What Are ETFs—and Why Do They Matter?
ETFs (Exchange-Traded Funds) are investment funds that trade on stock exchanges, much like individual stocks. Each ETF typically tracks a specific index, commodity, sector, or—in this case—a country’s stock market.
Why do investors love ETFs?
Diversification: Instead of betting on a single stock, ETFs give exposure to an entire basket—reducing individual company risk.
Liquidity: ETFs trade in real-time, offering easy entry and exit during market hours.
Cost-Efficiency: ETFs generally have lower fees compared to actively managed mutual funds.
Transparency: Holdings are published regularly, so investors know exactly what they own.
When you invest in, say, EPOL (iShares MSCI Poland ETF), you're effectively buying a slice of Poland’s entire stock market—making these tools ideal for geographically diversified strategies.
Top Global Equity ETF Performers (YTD as of May 13, 2025)
🇵🇱 Poland (EPOL): +47.6% Poland is topping the charts thanks to strong GDP growth (4.5% YoY), resilient domestic consumption, and booming exports, particularly in tech and energy sectors. EU development funding and investor-friendly reforms have added fuel to the rally.
🇦🇹 Austria (EWO): +34.3% Austria’s financial and industrial sectors have shown robust recovery, with tourism and export demand rebounding sharply post-pandemic. Low inflation and stable governance are keeping investor confidence high.
🇬🇷 Greece (GREK): +32.7% Greece continues its transformation from a debt-laden economy to an investment destination. The country’s credit rating was upgraded recently, and real estate, shipping, and infrastructure sectors are booming.
🇪🇸 Spain (EWP): +32.5% Strong bank profits and investment in renewables have powered Spain’s equities. GDP growth for Q1 beat expectations, and unemployment has fallen to a 16-year low.
🇨🇱 Chile (ECH): +30.0% A rising global demand for copper (crucial for electric vehicles and batteries) has placed Chile in a sweet spot. Stable governance and pro-market policies have helped attract institutional investors.
Middle Tier Markets: Solid But Not Soaring
🇩🇪 Germany (EWG): +26.2% Benefiting from a revival in industrial exports, especially to China and the U.S., Germany has seen a quiet but strong comeback.
🇲🇽 Mexico (EWW): +26.0% Nearshoring trends and U.S. trade dependency continue to favour Mexican industrial and consumer sectors.
🇬🇧 UK (EWU): +12.3% UK equities are treading water amid mixed signals. Defensive sectors like pharma and consumer goods are performing well, but Brexit overhangs and sluggish retail numbers keep growth muted.
🇮🇳 India (INDA): +2.1% India’s long-term potential remains intact, but early 2025 saw cautious sentiment due to national elections and high valuations in large-cap stocks.
Global Laggards: The ETF Under-performers of 2025
🇹🇷 Turkey (TUR): -9.5% Ongoing inflation (~35%), currency instability, and unpredictable policymaking continue to plague Turkish markets.
🇹🇭 Thailand (THD): -6.5% A drop in tourism, weak consumer demand, and policy uncertainty have weighed on Thai equities.
🇮🇩 Indonesia (EIDO): -5.1% The commodity cycle has turned against Indonesia, and foreign capital outflows have increased due to a weakening rupiah.
🇺🇸 U.S. (SPY): +0.4% Despite a strong run in 2023–2024, the S&P 500 has cooled off. While AI-heavy tech stocks remain solid, cyclicals and small-caps are lagging. Rate uncertainty remains a headwind.
What Can Investors Learn from This?
Avoid Home Bias
Investors often overweight their own country’s stocks. This data shows that diversification across geographies can enhance returns and reduce risk.
ETFs Are Tools, Not Guarantees
Just because you buy a country ETF doesn’t mean you’re guaranteed success. Always look at the underlying fundamentals, governance quality, and global trends.
Look Beyond Headlines
Media attention often focuses on U.S. or major Asian markets. Yet the top-performing ETFs in 2025 are from less-hyped regions like Eastern Europe and Latin America.
Opportunities May Lie in the Undervalued
Countries like India or South Korea are not top performers YTD, but may offer strategic entry points for long-term growth.
Strategy Suggestions for the Rest of 2025
For Growth Seekers: Consider increasing exposure to markets like Poland, Austria, and Chile—while watching for signs of overheating.
For Contrarian Investors: Keep an eye on undervalued, structurally sound markets like India and Indonesia for potential rebounds.
For Balanced Portfolios: Blend high-performing country ETFs with global ETFs (e.g., ACWI, VEU) to mitigate concentration risks.
Sources:
If you're ready to start investing beyond borders with clarity and confidence, visit www.campaignforamillion.com to explore how I help everyday investors build smarter, globally diversified portfolios—without needing a fund manager.
RISK WARNING: All investing is risky. Returns at not guaranteed. Past performance and case studies are no guarantee of future results.
Disclaimer: The content provided on this blog is for informational purposes only and does not constitute financial advice. The opinions expressed here are the author's own and do not reflect the views of any associated companies. Investing in financial markets involves risk, including the potential loss of your invested capital. Past performance is not indicative of future results.
You should not invest money that you cannot afford to lose. Mentions of specific securities, investment strategies, or financial products do not constitute an endorsement or recommendation. The author may hold positions in the securities discussed, but these should not be viewed as personalised investment advice.
Readers are encouraged to conduct their own research and seek professional advice before acting on any information provided in this blog. The author is not responsible for any investment decisions made based on the content of this blog.
Alpesh Patel OBE
Visit www.alpeshpatel.com/shares for more and see www.alpeshpatel.com/links
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