Visualizing Asset Class Returns in Q1 2025

The New Diplomat
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  • As one of the top performing assets in Q1 2025, gold soared to record highs amid global trade uncertainty and its role as an inflation hedge.
  • European equities also had a strong quarter, with the STOXX Europe 600 outperforming the S&P 500 by 9.8 percentage points.
  • Amid concerns of weaker economic growth and rising inflation, U.S. equities had their worst quarter since 2022.

As a flurry of tariffs are upending global trade alliances, asset returns are taking a new turn.

Unlike the past two years, where U.S. stocks dominated, they are now facing a steepening selloff. Meanwhile, safe haven assets like gold and long-duration Treasuries are outperforming many other asset classes.

This graphic shows asset class returns in Q1 2025, based on various sources.

Asset Class Returns in a Shifting Landscape

Below, we rank the performance of major asset classes so far in 2025:

Asset Class Index Q1 2025 Returns
Gold London Fix 19.0%
Europe Equities STOXX Europe 600 5.2%
Emerging Market Equities iShares MSCI Emerging Index Fund 4.5%
Long Duration Treasurys iShares 20+ Year Treasury Bond ETF 4.2%
Commodities S&P Goldman Sachs Commodity Index 3.4%
U.S. REITs Dow Jones Real Estate Index 2.6%
Crude Oil WTI -0.7%
U.S. Dollar Index U.S. Dollar Index -4.0%
U.S. Large Caps S&P 500 -4.6%
U.S. Small Caps Russell 2000 -9.8%
Bitcoin -11.5%

In late March, gold hit all-time highs of over $3,100 amid ongoing trade tensions, making it a top-performing asset over the quarter.

Also driving returns are gold ETF inflows and central bank purchases. By year-end, gold is projected to reach as high as $3,300 per ounce amid sustained central bank demand.

Notably, European stocks posted their strongest quarter relative to the S&P 500 since 2015, driven by the bloc’s plans to increase defense spending by up to $840 billion. This surge in military investment is expected to fuel economic growth across the region. Overall, European stocks gained 5.2% as investors have increasingly looked to the continent.

Going further, U.S. large caps closed off the quarter with -4.6% returns, with major tech giants among the hardest hit. Meanwhile, the U.S. dollar weakened by 4% as confidence in the U.S. economy declined—boosting nearly all developed market currencies against the dollar.

Credit: Visual Capitalist

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