Global Investment Trends Beyond Big Tech
Alphabet Inc. (NASDAQ: GOOG) has certainly made waves this year, showing impressive growth. However, it seems that investors who venture outside the U.S. tech landscape are encountering even more lucrative opportunities in various global equity markets.
Outperforming ETFs in 2025
Year-to-date, shares of Alphabet have increased by about 66%, making them the leader among the mega-cap tech giants. Not far behind is Nvidia Corp (NASDAQ: NVDA), which has reported a 42% uptick. Yet, in more surprising news, eight specific exchange-traded funds (ETFs) focusing on countries outside the U.S. have delivered stronger returns than Alphabet.
Top Country ETFs to Watch
According to insights gathered from CountryETFtracker, these eight country-focused ETFs have showcased remarkable performance this year:
- iShares MSCI South Africa ETF (NYSE: EZA), up 67.3%
- iShares MSCI Austria ETF (NYSE: EWO), up 67.9%
- Global X – MSCI Colombia ETF (NYSE: COLO), up 68.5%
- iShares MSCI Poland ETF (NYSE: EPOL), up 68.6%
- iShares MSCI Spain ETF (NYSE: EWP), up 73%
- Global X – MSCI Greece ETF (NYSE: GREK), up 77%
- iShares MSCI Peru and Global Exposure ETF (NYSE: EPU), up 85%
- iShares MSCI South Korea ETF (NYSE: EWY), up 87%
Commodities Catalyst in Emerging Markets
Interestingly, several of these high performers share a common theme: commodities. For example, nations like South Africa, Colombia, and Peru have witnessed significant boosts due to the soaring prices of precious and industrial metals.
Silver prices have surged 160% this year, while gold has increased nearly 70%. Lesser-known metals such as platinum and palladium have also recorded gains, reaching 170% and 110%, respectively.
Notable Mining Gains
The implications for mining stocks tied to these commodities are noteworthy. In South Africa, companies like AngloGold Ashanti Plc (NYSE: AU) and Gold Fields Limited Sponsored ADR (NYSE: GFI) have seen their stock prices each surge beyond 220%. Additionally, the currency strength of the South African rand has risen over 11% against the dollar, marking its best performance since 2009.
Southern Europe: A Banking Revival
Southern Europe, particularly countries like Spain and Greece, has also been making headlines due to the resurgence of their banking sectors after years of struggle. For instance, Greece’s National Bank, Eurobank, and Alpha Bank have experienced remarkable gains—up 85%, 68%, and 133%, respectively, this year.
In Spain, Banco Santander S.A. (NYSE: SAN) has pulled off a staggering 129% increase in its stock price, driven by higher interest margins and renewed investor trust.
Technological Strength of South Korea
South Korea stands out predominantly due to its technological advancements. The rally is closely linked to major chipmakers like Samsung Electronics Co. Ltd (OTC: SSNLF) and SK Hynix, which account for a substantial portion of the iShares MSCI South Korea ETF. Their shares have skyrocketed by 123% and 250%, showcasing the robust demand for memory chips worldwide.
This upward trend significantly reflects a global appetite for technology and innovation beyond U.S. borders. While Alphabet has undoubtedly had a remarkable year, the broader investment landscape provides ample evidence of opportunities lying beyond American tech giants.
Frequently Asked Questions
What are the top-performing ETFs this year?
The top-performing ETFs include the iShares MSCI South Korea ETF (EWY), iShares MSCI Peru (EPU), and iShares MSCI Spain (EWP) among others.
How did commodities affect these markets?
Commodities, such as precious and industrial metals, significantly boosted the performance of stocks in countries like South Africa and Peru.
What is driving the South Korean market surge?
The South Korean market surge is primarily driven by the success of chipmakers tied to technology and artificial intelligence.
What has changed in Southern Europe’s banking sector?
Southern Europe's banking sector has revived significantly due to improved performance in stocks tied to banks after long years of underperformance.
How does Alphabet Inc. compare to these markets?
While Alphabet has had a strong year, several international markets have outperformed it, highlighting the potential for growth outside the U.S. tech scene.