2025 was a big year for ex-U.S. equities, as a declining dollar, tariff uncertainty, and domestic concentration risk drove investors abroad. Broad ex-U.S. equities performed well and rewarded those investors, but it was some notable subregions that really delivered. While Europe was a key player for portfolios, ETF Database’s list of global ex-U.S. ETFs reveals two other regions that may surprise even the diligent market watcher.
See more: Can Africa Continue to Stand Out in Emerging Markets?
Those two regions? Africa and South America. The top ten ETFs in ETF Database’s list of global ex-U.S. equities ETFs, ranked by YTD performance, included three ETFs focusing on those continents either overall or in part. The VanEck Africa Index ETF (AFK ), the First Trust Latin America AlphaDEX Fund (FLN ), and the VanEck Brazil Small-Cap ETF (BRF ), all placed in the top ten as of December 30.
Trio of Ex-U.S. Equities Lead From Global South
AFK took the top spot among that trio and stood out as the highest non-leveraged regional performer on a YTD basis. Mining companies have played a big role for AFK this year, helping the fund return a robust 71.4% YTD as of December 30. Charging 88 basis points (bps), a relatively high fee, the passive fund is one of a handful offering exposure to Africa.
FLN and BRF, meanwhile, play in the much more popular South America ETF space. FLN charges 80 bps to focus on the broader continental market. The strategy’s index includes key commodity-producing nations like Peru, Brazil, Chile, and Mexico. Intriguingly, per ETF Database data, the ETF’s largest sectors by weight include areas like financials and utilities. The strategy has returned 53.6% YTD, outpacing the Latin American Equities category average for that time period.
Finally, focusing on the largest nation on the continent, BRF also earned a top-ten place among ex-U.S. equities ETFs this year. BRF charges less than the other two funds at just 60 bps. It offers an alternative approach to another very popular Brazil ETF, EWZ. Where the iShares MSCI Brazil ETF (EWZ ) leans on energy and financials, BRF offers comparably less energy exposure. The fund still managed strong returns with 52% YTD.
Together, the trio of funds have stood out from the pack in a big year for foreign equities. Whether they will repeat remains a question, but each may have a case for further consideration in the new year.
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