After a remarkable rally in 2024 that propelled U.S. equities to record levels, the global investment landscape is beginning to look more balanced. While American stocks delivered exceptional gains last year, investors are now finding stronger short-term performance opportunities outside the United States.

Since President Donald Trump began his new term on January 20, equity markets in Europe and China have outperformed their U.S. counterparts by a noticeable margin. The S&P 500 has gained just over 1% since the inauguration, even after a recent pullback. In contrast, the MSCI China ETF has surged approximately 17% over the same period. European equities have also advanced steadily, with the iShares Eurozone ETF climbing around 6%. Meanwhile, the iShares China Large Cap ETF has risen roughly 16%.

Blue-chip U.S. stocks are also struggling to maintain momentum. The Dow Jones Industrial Average is barely holding onto positive territory over the past month, underscoring how modest domestic returns have been compared with global peers.

The contrast becomes even clearer in the technology sector. The Invesco QQQ ETF, which tracks many of America’s largest technology names, has gained about 2.5% since the inauguration. By comparison, the KraneShares CSI China Internet ETF has rallied close to 20%, reflecting renewed investor appetite for Chinese internet and platform companies.

Emerging markets beyond China are also participating in the global upswing. The iShares MSCI Emerging Markets ETF has climbed nearly 6%, outpacing U.S. benchmarks, although it trails the strongest performers in Europe and China. Still, this renewed interest suggests that capital is beginning to rotate toward markets that had previously lagged during America’s extended bull run.

One strategy drawing attention is the Freedom 100 Emerging Market ETF, managed by Life + Liberty Indexes and founded by Perth Tolle. Since Trump’s inauguration, the fund has delivered returns comparable to the broader emerging market benchmark, rising around 6%.

The Freedom 100 Emerging Market Index places significant weight on Taiwan, Chile, South Korea, Poland, and Brazil, with companies from these five markets accounting for roughly three-quarters of the portfolio. Among its largest holdings are Samsung at 8%, Taiwan Semiconductor Manufacturing Company at 7%, Banco de Chile and Bank Polska at approximately 4% each, and companies such as Hon Hai Precision Industry (widely known as Foxconn), SK Hynix, and LATAM Airlines Group at about 3% apiece.

Emerging markets are often viewed as volatile and politically unpredictable. Regulatory uncertainty, currency fluctuations, and governance concerns can amplify risks. However, the Freedom 100 strategy attempts to mitigate some of these challenges by selecting companies from countries evaluated across 86 different indicators. These metrics include freedom of capital movement, rule of law, and personal economic liberty, aiming to assess how investable each market truly is.

India has long been a focal point for emerging market investors, thanks to its demographic expansion and growing middle class. Yet within the Freedom 100 framework, India receives a relatively lower weighting. High tariff barriers—among the highest average rates globally—along with concerns surrounding personal and economic freedoms, have weighed on its ranking.

Nevertheless, India’s structural strengths remain difficult to ignore. The country has recently surpassed China in population, offering a vast and increasingly consumer-driven domestic market. Its workforce is highly educated, with English widely spoken, providing competitive advantages in services, technology, and global trade. Demographically, the outlook appears favorable over the long term.

Despite these positive fundamentals, the iShares MSCI India ETF has declined about 1.5% since Trump returned to office. Trade policy concerns have contributed to investor caution. Tariffs, in particular, are widely viewed as a drag on economic growth, especially for export-oriented economies.

Trade relations between Washington and New Delhi have drawn renewed attention. Indian Prime Minister Narendra Modi was among the first foreign leaders to visit the White House during Trump’s second term. On the same day reciprocal tariff proposals were announced affecting several countries, including India, both sides signaled an intention to address and potentially resolve outstanding trade disputes.

Government policy uncertainty has become a central factor shaping global markets. As geopolitical tensions and trade negotiations evolve, investors are paying closer attention to how policy decisions influence capital flows and corporate profitability.

For funds like Freedom 100, the guiding principle remains consistent: prioritize companies operating in environments where private enterprise can function independently of excessive state intervention. The underlying philosophy is that businesses should be free to pursue shareholder value without being subordinated to government agendas.

Historically, skepticism toward emerging markets has often stemmed from governance concerns. Many investors hesitate to allocate capital to countries perceived as authoritarian or politically unstable. Questions about transparency, civil liberties, and the rule of law frequently weigh on long-term investment decisions.

Yet as 2025 unfolds, the global equity narrative appears to be shifting. After years of U.S. market dominance, diversification beyond American borders is once again demonstrating its value. Whether this trend proves temporary or marks the beginning of a broader rebalancing remains uncertain. What is clear, however, is that international markets—from Europe to China and select emerging economies—are commanding renewed attention in portfolios that had previously been heavily concentrated in U.S. assets.

In a market environment shaped by policy shifts, demographic trends, and evolving trade dynamics, investors are being reminded of a familiar lesson: global opportunities extend well beyond national borders, and leadership in equity performance can rotate when least expected.