April brought continued volatility to global financial markets, reflecting persistent investor concerns over inflationary pressures, central bank policy shifts, and uneven economic data. While fixed income markets posted modest gains, equities—particularly in the U.S.—remained under pressure. Below is a summary of how various asset classes have performed year to date through April 30, 2025.
U.S. Equities: A Tough Start for Growth Stocks
U.S. stock markets declined across most segments, with large-cap technology stocks continuing to lead the retreat. The NASDAQ-100 (QQQ) dropped -6.9% YTD, despite averaging a robust 16.9% return over the past decade. Broad-market ETFs like VOO (S&P 500) and IWV (total U.S. market) fell -5.1% and -5.6% respectively, while small-cap stocks (IWM) suffered the most with an -11.6% loss.
Value stocks held up comparatively better: VTV, which tracks large-cap value stocks, declined only -1.1%. Fundamental-weighted U.S. equity ETFs like FNDX also outperformed growth-heavy indices, though still posted a -3.2% decline.
International Equities: A Bright Spot
In contrast to domestic equities, international stocks delivered strong gains. Developed markets ex-U.S. (SPDW) rose 10.9%, while emerging markets (EEM) posted a positive 4.6% return. Fundamental-weighted international stocks (FNDF) led all equity segments with a 12.1% YTD gain.
This strength reflects currency tailwinds, stronger-than-expected economic data in Europe and Japan, and relative valuation support compared to U.S. stocks.
Fixed Income: Stability Returns
With rate volatility easing, bond markets delivered solid performance across maturities. The total U.S. bond market (BND) returned 3.2% YTD, while intermediate-term (VGIT) and inflation-protected bonds (VTIP) gained 4.4% and 3.9%, respectively. Even short-term bonds (SCHO) delivered a 2.8% return, highlighting a more stable interest rate environment.
Real Assets and Diversified Portfolios
Real estate investment trusts (VNQ) were essentially flat (+0.2%), and commodities (DBC) gave back some of their earlier gains, posting a -3.8% loss year to date.
Diversified allocation ETFs saw modest gains:
– AOA (80/20 stocks/bonds): +0.3%
– AOR (60/40): +1.0%
– AOM (50/50): +1.6%
– AOK (40/60): +1.8%
These results reinforce the benefit of balanced portfolios in volatile market environments.