Visual Capitalist: Visualizing Asset Class Returns In Q1 2025
Key Takeaways
- 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.
Source: https://www.visualcapitalist.com/asset-class-returns-in-q1-2025/