In USD terms the rotation is unambiguous: the Eurozone advances roughly 29.6%, World ex-US delivers about 21.5%, and the Total World index prints around 14.2%, while the S&P 500 trails at roughly 10.3%. Leadership has broadened beyond the United States, rewarding portfolios that were disciplined on valuation and exposure to cyclicals.

Europe’s comeback is the headline

Greece and Poland top the global table by a wide margin, with Spain and Austria close behind. Large markets add breadth: Italy and Germany post high double-digit gains and the pan-European composite rises above 25%. The drivers are straightforward—lower starting multiples, heavier weights in banks/industrials/energy, and a more predictable rates path—together translating into visible operating leverage.

Asia’s split tape

Asia runs on two speeds. Vietnam and South Korea ride an export-cycle upswing and AI-adjacent supply chains. Taiwan and Japan add respectable gains, while parts of Southeast Asia tread water and Thailand declines. India’s flat-to-negative print is the reminder that when perfection is priced in, even strong fundamentals can translate into muted USD returns. FX translation is a first-order variable in this region and helps explain the dispersion.

The Americas and EMEA: divergence with signal

Latin America leans constructive: Mexico benefits from near-shoring capex, while Brazil, Chile, Peru and Colombia post broad-based advances. In EMEA, South Africa surprises to the upside, the Gulf is mixed, and policy choices plus index composition drive spread risk. The takeaway is algorithmic: treat country exposures as distinct macro stories rather than a single emerging-markets bucket.

The US: strong franchise, softer relative print

With ~10.3% versus a ~14.2% world print, the US underperforms the very benchmark it dominates. This is not a call on the end of the US cycle; it is a signal that leadership has expanded. As profits normalize beyond mega-caps, the valuation advantage of Europe and select EMs becomes performance.

What the data is telling allocators

Reduce home-bias, be intentional about index selection, and manage FX as a design constraint rather than an afterthought. Eurozone, EAFE and World ex-US outperformance versus the S&P 500 underscores that vehicle choice shapes outcomes, not just exposures. If the dollar strengthens, non-US markets will need stronger earnings delivery to sustain the spread; if it weakens, the relative bid can persist.

Looking ahead

Durability will be a function of earnings-revision momentum and a stable rates glidepath in Europe, cash-flow conversion in Korea/Taiwan, and the trajectory of Mexico’s investment cycle. The dollar remains the swing factor. For now, 2025 is the year diversification paid and concentration risk showed its teeth.