Australian shares have had a good year by their own measure, with the ASX 200 climbing past 9,000 points for the first time and returning roughly 8% so far in 2025. Measured against the rest of the world, though, the market now sits in the middle of the pack, a reminder that a national success can look modest beside the gains elsewhere. The explanation offered by fund managers is less about the Australian economy's health than about its composition: an index built on miners and banks, which benefit less when a sweeping new technology reshapes markets, paired with a weaker US dollar that has li
ASX Lags Global Peers in 2025, Ranking 22nd of 30 Major Exchanges Year to Date
A record-setting year, and still 22nd of 30
Mark
Australia's market is at record highs. Why is it being called a laggard?
Mimi
Because the comparison is relative. The ASX 200 is up about 8% this year, but a report puts it 22nd of 30 major exchanges. Several markets have returned well over 10%.
Mark
Who is ahead?
Mimi
South Korea, Hong Kong, China, Canada, Turkey, Japan, the US and the UK. Emerging markets like Vietnam, Mexico, Brazil and Indonesia are also near the top.
Luke
Worth flagging that the ranking comes from one report, and the article says it "alleges" it. We don't see the methodology or the full table.
Mark
What explains the gap?
Mimi
Anna Milne of Wilson Asset Management says the market is heavy in miners and financials, which gain less from shifts like AI. John Stavliotis of Antipodes says a weaker US dollar helps emerging markets.
Luke
Those are two fund managers' explanations. They sound plausible, but nothing in the piece measures how much each factor contributed.
Mark
And the longer-term picture?
Mimi
Strong. The index averaged 13.04% a year over three years to 31 August, against a long-term average of 8.86%.
Luke
Also, the article points to ETFs that fund managers' industry sells. It adds a caveat about past performance, and that caveat matters. Last year's leaders aren't guaranteed to lead next year.
O Pulso
- The ASX 200 has crossed 9,000 for the first time, yet a cited ranking places Australia 22nd of 30 major exchanges, trailing most of its developed peers.
- Heavy reliance on miners and financials leaves the index exposed, as fund managers say these old-economy sectors gain little from the artificial intelligence boom.
- A falling US dollar is fueling strong runs in Vietnam, Mexico, Brazil and Indonesia, while Australian stocks miss out on the tailwind.
- Investors frustrated by the gap are being pointed toward ASX-listed ETFs such as IVV, F100, IJP and IKO as a route to global exposure, with the usual warning that past performance guarantees nothing.
Australian shares have had a good year by their own measure, with the ASX 200 climbing past 9,000 points for the first time and returning roughly 8% so far in 2025. Measured against the rest of the world, though, the market now sits in the middle of the pack, a reminder that a national success can look modest beside the gains elsewhere. The explanation offered by fund managers is less about the Australian economy's health than about its composition: an index built on miners and banks, which benefit less when a sweeping new technology reshapes markets, paired with a weaker US dollar that has lifted emerging economies more than Australia. Whether that gap closes will depend on forces that no single portfolio can control.
The S&P/ASX 200 crossed 9,000 points for the first time in August and has climbed as high as 9,054.5. For a local investor, 2025 has been a respectable year, with the index up roughly 8% so far. Set against the rest of the world, however, it looks ordinary. A report cited by The Motley Fool Australia ranks Australia 22nd of 30 major exchanges on year-to-date returns, with South Korea, Hong Kong, China, Japan, the United States and the United Kingdom all gaining well over 10%.
The lag is relative rather than absolute. Over three years to 31 August, the index averaged 13.04% a year including dividends, comfortably above its long-term average of 8.86%, and it has set a run of record highs this year. The shortfall is a matter of comparison, not decline.
Two fund managers explain the gap. Anna Milne of Wilson Asset Management points to an index dominated by miners and financials, sectors that gain little when a transformative force like artificial intelligence arrives, and notes that Australian large caps have not doubled in value as some overseas peers have. John Stavliotis of Antipodes points to a weakening US dollar, which has given emerging markets such as Vietnam, Mexico, Brazil and Indonesia a strong tailwind.
For those who want exposure beyond the ASX, the article highlights locally listed ETFs covering the US, UK, Japan and South Korea. The closing caution applies: past performance is no guarantee. The question to watch is whether the dollar keeps weakening and whether Australian large caps begin to close the valuation gap.
The S&P/ASX 200 crossed 9,000 points for the first time in its history in August, and has since reached as high as 9,054.5. By most measures it has been a good year for Australian shares. The index has returned roughly 8% in 2025 to date. A report published this week suggests that, against the rest of the world, it is only a middling one.
That report, as described by The Motley Fool Australia, ranks Australia 22nd out of the world's 30 major stock exchanges on year-to-date returns. South Korea, Hong Kong, China, Canada, Turkey, Japan, the United States and the United Kingdom have all returned well over 10% so far this year. Australia did beat four markets: India, France, Switzerland and New Zealand. The ranking is the report's claim, and the article attributes it rather than verifying it independently.
The lag sits against a strong longer run. As of 31 August, the ASX 200 had returned an average of 13.04% a year over the previous three years, dividends included. That is well above its long-term average of 8.86%. The index has set a string of record highs in 2025, so the underperformance is relative, not absolute.
The report quotes two fund managers on the cause. Anna Milne of Wilson Asset Management points to the makeup of the Australian market, which leans heavily on what she calls old world industries such as miners and financial stocks. When big world-shifting events like artificial intelligence arrive, she says, those sectors benefit less. In her words, Australia has not seen large-cap valuations double the way some have offshore.
John Stavliotis of fund manager Antipodes adds a second factor: a weakening US dollar. He describes it as a strong tailwind for emerging market returns, particularly in ASEAN countries, which are constantly fighting capital flight when the dollar is strong and US interest rates are high. Several of this year's best performers are emerging markets, including Vietnam, Mexico, Brazil and Indonesia.
For investors who look at those returns with envy, the article notes that many of these markets can be reached through exchange-traded funds listed on the ASX. The US, UK, Japanese and South Korean markets all have funds available locally. Examples named are the iShares S&P 500 ETF (ASX: IVV), the BetaShares FTSE 100 ETF (ASX: F100), the iShares MSCI Japan ETF (ASX: IJP) and the iShares MSCI South Korea ETF (ASX: IKO).
The article closes with the standard caution that past performance does not guarantee future results. Its argument is that 2025's lag shows again how an internationally diversified portfolio can lift returns for Australian investors. Watch whether the dollar's weakness persists and whether Australian large caps start to close the valuation gap Milne describes.
Citações Notáveis
Big world-shifting events like AI benefit old world industries such as miners and financials less, and Australian large-cap valuations haven't doubled like some offshore.— Anna Milne, Wilson Asset Management (paraphrased)
The weakening US dollar is a strong tailwind for emerging market returns, particularly in ASEAN.— John Stavliotis, Antipodes
Quer a matéria completa?
Leia o original em The Motley Fool Australia ↗
Business