As we close out the first quarter of 2025, the markets have presented a mix of headwinds and bright spots. Below is a snapshot of how various asset classes performed year to date, based on popular exchange-traded funds (ETFs). Keep in mind that past performance does not guarantee future results, and these returns can fluctuate throughout the year.
US Equity Markets
| ETF | Investment Type | YTD Return |
| QQQ | Large Technology Oriented | -8.1% |
| VOO | Large Company Stocks | -4.3% |
| VTV | Large Company Value Stocks | 2.6% |
| IWV | US Stock Market as a Whole (98%) | -4.7% |
| FNDX | Fundamental Weighted US Stocks | 0.1% |
| IWM | Small Company Stocks | -9.5% |
US stocks have seen considerable volatility, particularly in the technology sector (QQQ: -8.1%) and small-cap space (IWM: -9.5%). Some bright spots include value-oriented large-cap holdings (VTV: +2.6%) and fundamentally weighted US stocks (FNDX: +0.1%). Overall, the broader market (IWV) is down at -4.7%. Value stocks and more fundamentally weighted approaches are showing relative resilience this quarter.
International Equities
| ETF | Investment Type | YTD Return |
| SPDW | International Developed (ex-US) Stocks | 6.7% |
| FNDF | Fundamental Weighted International Stocks | 8.8% |
| EEM | International Emerging Markets | 4.5% |
International equities have fared better than many US-focused ETFs so far in 2025. Both developed (SPDW) and fundamental-weighted (FNDF) ex-US stocks posted healthy gains of 6.7% and 8.8%, respectively. Emerging markets (EEM) also delivered positive returns (+4.5%).
Fixed Income
| ETF | Investment Type | YTD Return |
| BND | Total Bond Market | 2.8% |
| VGIT | Intermediate Bonds | 3.1% |
| SCHO | Short Term Bonds | 1.9% |
| VTIP | Inflation Protected Bonds | 3.1% |
Bonds have generally posted moderate, positive returns. Intermediate bonds (VGIT: +3.1%) and inflation-protected bonds (VTIP: +3.1%) have slightly outperformed short-term issues (SCHO: +1.9%), while the broad total bond market index (BND) is up 2.8%.
Real Assets & Commodities
| ETF | Investment Type | YTD Return |
| VNQ | Real Estate | 2.7% |
| DBC | Commodities | 5.2% |
Real estate (VNQ) managed a positive return of 2.7%, while commodities (DBC) saw a solid 5.2%. Real assets are not monolithic—while real estate has shown moderate gains, commodities have produced stronger returns as they track multiple factors.
Diversified (Multi-Asset) Funds
| ETF | Investment Type | YTD Return |
| AOA | 80% Stocks / 20% Bonds | -0.1% |
| AOR | 60% Stocks / 40% Bonds | 0.4% |
| AOM | 50% Stocks / 50% Bonds | 1.0% |
| AOK | 40% Stocks / 60% Bonds | 1.3% |
These diversified funds show how different mixes of stocks and bonds can impact returns. Funds with a higher equity allocation (AOA) were slightly down (-0.1%), while those with a higher fixed-income component (AOK) ended the quarter up 1.3%.
Key Observations and Themes
– Value-oriented US stocks outperformed tech-heavy and small-cap sectors.
– International equities delivered strong gains, especially in developed and fundamentally weighted markets.
– Bonds provided stability across the spectrum, particularly intermediate and inflation-protected categories.
– Real assets like commodities stood out, delivering strong positive returns.
– Diversified funds illustrate the buffering power of balanced portfolios during equity market drawdowns.
Disclaimer: This information is provided for informational purposes only and should not be considered investment advice. Year-to-date performance data is through March 31, 2025, based on the referenced ETFs. Past performance is not a guarantee of future results. Always consult a qualified financial advisor to discuss your individual investment objectives and risk tolerance before making decisions.