Global conflict, rising interest rates and inflation have all contributed to a volatile year for the S&P/ASX 200 Index (ASX: XJO).
Australia's benchmark index dipped again yesterday to start the week in the red.
It is now down 2.5% over the last month.
History tells us that we can expect annual returns of between 7% and 9% for the ASX 200 on an average year.
However it's important to understand this isn't a consistent, year to year return.
Some years the ASX 200 has rocketed almost 20%, like back in 2019.
Meanwhile, other years it will drop over a 12 month period.
This is why it's important for investors to geographically diversify their portfolio by also investing in equities outside Australia.
While certain Australian equities lag, companies in other countries are performing well.
One way to do this is through ASX listed ETFs.
Here are three funds that have raced past the ASX 200 this year
Image source: Getty Images
Global X Semiconductor ETF (ASX: SEMI)
This ASX ETF enjoyed a 5% gain yesterday, taking its year to date rise to 60%.
The fund invests in companies that stand to potentially benefit from the broader adoption of tech-enabled devices that require semiconductors. This includes the development and manufacturing of semiconductors.
Semiconductors, essential for AI, are strategic assets due to their ability to control electricity and power modern electronics, likened to "brains and nerves" of devices.
Geographically, the companies that make up the fund are mostly from:
- United States (66.55%)
- Taiwan (11.38%)
- Netherlands (8.30%).
Betashares Capital – Asia Technology Tigers Etf (ASX: ASIA)
This ASX ETF tracks the performance of an index (before fees and expenses) comprising the 50 largest technology and online retail stocks in Asia (ex-Japan).
ASIA ETF provides diversified exposure to a high-growth sector that is under-represented in the Australian sharemarket, and a complement to investors with U.S. technology exposure.
This fund is up an impressive 38% year to date.
It is up more than 90% over the last 12 months.
iShares Msci Emerging Markets Ex China ETF (ASX: EMXC)
This ASX ETF aims to provide investors with the performance of the MSCI Emerging Markets ex China Index, before fees and expenses.
The index is designed to measure the equity market performance in global emerging markets, excluding China.
It includes a large exposure to information technology and financials shares.
Its top geographic exposure is to:
- Taiwan (32.6%)
- South Korea (23.9%)
- India (15.4%).
Since the start of 2026, the fund has risen more than 21%.
