- 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.
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
