15 April 2025
Written by MYTHEO
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March’s tariff shockwave triggered the worst market plunge since 2022, hammering growth stocks and sending shockwaves through portfolios. Yet amid the chaos, hidden opportunities emerged—resilient sectors and international markets defied the downturn.

How did MYTHEO portfolios weather the storm? And more importantly, what can you do to stay on track when volatility strikes? Dive into our latest analysis to uncover strategies for navigating turbulent markets—and turning uncertainty into opportunity."

Key Takeaways
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Trump's tariff announcements in March triggered significant market turmoil, leading to the worst equity market meltdown since September 2022.

MYTHEO portfolios experienced negative performance due to the market volatility. US growth stocks were hit hardest, but US value stocks and non-US exposures provided some resilience, helping cushion overall portfolio performance.

Trump’s tariff policies have introduced unprecedented complexity beyond global trade, making market predictions extremely challenging
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‍In this monthly report, we will assess the performance of MYTHEO’s portfolios in light of the financial market developments in March 2025.

1. Growth Portfolio

‍MYTHEO’s Growth Portfolio was down by 0.67% (down by 1.23% in MYR) in March 2025.

The Trump administration's tariff policy stirred up quite a storm in global financial markets. The US imposed a 25% tariff on imports from Canada and Mexico and increased tariffs on Chinese goods from 10% to 20%. The news has fuelling market volatility and leading to a sharp sell-off, especially in the equity market.

US growth stocks were hit hard, with the Nasdaq 100 ETF (QQQM) and US Mid Cap Growth stocks (IWP) declining by 5.39% and 4.63%, respectively. However, stocks trading at relatively low valuations, known as "value" stocks, along with those with non-US exposure, managed to defy the trend. By the end of the month, US value stocks recorded gains of +2.68%, Canadian stocks rose by +2.46%, and Emerging Market stocks increased by +1.30%, providing some relief amidst the turbulence.‍‍
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Top 3 ETFs performance (Growth portfolio)

Bottom 3 ETFs performance (Growth portfolio)

Source: GAX MD Sdn Bhd, data in USD term for the month of March 2025.

2. Income Portfolio

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In March 2025, MYTHEO's Income Portfolio dropped by 0.79% (a decrease of 1.34% in MYR).

In March 2025, the MYTHEO Income Portfolio surrendered some of the gains it achieved in February as investors shifted their focus toward safer assets. This shift resulted in a decline in preferred shares (PFF) by 1.88%, high-yield bonds (SJNK) by 0.94%, and long-term treasuries with maturities exceeding 20 years by 0.47%.

However, international treasuries gained traction among investors, posting a rise of 0.69%. Additionally, there was a notable trend toward shortening bond maturities, as investors increased allocations to 3–7 year US treasuries (IEI) and floating rate bonds (FLOT), which were up by 0.37%.
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Top 3 ETFs performance (Income portfolio)

Bottom 3 ETFs performance (Income portfolio)

Source: GAX MD Sdn Bhd, data in USD term for the month of March 2025.

3. Inflation Hedge Portfolio

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In March 2025, MYTHEO’s Inflation Hedge Portfolio recorded a gain of 0.20% (a loss of 0.36% in MYR), making it the top-performing MYTHEO portfolio for the month.

US inflation data for the month of February dropped back to 2.80% compared to stronger than-expected data of 3.00% January. In light of more uncertainty in international with more and more tariffs introduce by Trump and rising geopolitical risk from the end of ceasefire in the Middle East led to spike in precious metals with gold (IAU) rose by 7.12% and Silver spiked by +6.85%. Meanwhile, Oil fund (DBO) rose by 3.67%.

The softer inflation prompted investors to lock in profits from real estate and mortgage assets, which had significantly outperformed in February. In March, these were the only two ETFs in the Inflation Hedge portfolio to post losses, with Real Estate (IYR) down 2.09% and Mortgage (REM) off by 1.97%.

‍Let me know if you'd like to fine-tune it further!
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Top 3 ETFs performance (Inflation hedge portfolio)

Bottom 3 ETFs performance (Inflation hedge portfolio)

Source: GAX MD Sdn Bhd, data in USD term for the month of March 2025.

4. Global ESG Portfolio

MYTHEO’s Global ESG dropped by 1.71% (up by 2.26% in MYR) in March 2025.

The MYTHEO ESG portfolio faced challenges in March due to a broad sell-off in the US market, with growth stocks bearing the brunt of the downturn. ESG large-cap growth stocks (NULG) experienced the steepest decline, falling by 5.05%. Other related ETFs, including USA ESG Select (SUSA) and ESG Aware US Stocks (ESGU), also posted losses of 3.49% and 3.28%, respectively.

However, like the MYTHEO Growth portfolio, emerging market stocks and US value stocks managed to defy the broader market trend. ESG Aware Emerging Markets (ESGE) and ESG Emerging Large-Cap Value (NULV) were the only assets in the ESG portfolio to record positive returns, gaining 0.75% and 0.15%, respectively.
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Top 3 ETFs performance (Global ESG portfolio)

Bottom 3 ETFs performance (Global ESG portfolio)

Source: GAX MD Sdn Bhd, data in USD term for the month of March 2025.

5.  Essential Products Portfolio

MYTHEO’s Essential Products portfolio was up by 0.66% (0.09% in MYR) in March 2025.

The MYTHEO Essential Products Portfolio delivered positive returns in March, despite highly polarized performance across its six assets. Half of the assets ended the month with gains, while the other half posted losses.

The energy sector saw strong gains following the end of the Middle East ceasefire, with the Energy ETF (XLE) up by 7.45% and Clean Energy ETF (ICLN) rising by 2.61%. Agriculture rebounded from the previous month's decline, climbing by 3.57%.

On the other hand, the Lithium and Battery ETF (LIT) extended its losing streak, dropping 3.72% as lithium prices fell to their lowest levels since 2021. Persistent oversupply and weaker-than-expected demand from the electric vehicle sector were the primary drivers of this underperformance.

Meanwhile, the Water ETF (FIW) and Global Wind Energy ETF (FAN) also posted losses, reflecting the broader negative sentiment in the market. There was no specific news impacting these sectors during the review period.
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Top 3 ETFs performance (Essential products portfolio)

Bottom 3 ETFs performance (Essential products portfolio)

Source: GAX MD Sdn Bhd, data in USD term for the month of March 2025.

Chart 1: YTD 2025 Portfolio Return in % (MYR)

Source: GAX MD Sdn Bhd, March 2025
Note: Past performance is not an indication of future performance
Balanced allocation consists of 30% Growth, 47% Income and 23% Inflation Hedge

How to calculate MYTHEO Omakase actual monthly portfolio return

For MYTHEO Omakase, the actual portfolio returns derive from the combined weighted returns of each allocated functional portfolio.
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For instance, assuming allocations of 30% to the Growth portfolio, 47% to the Income portfolio and 23% to the Inflation Hedge Portfolio, the portfolio return in MYR for March would be -1.08%, calculated as follows: [(30% x -1.23%) + (47% x -1.34%) + (23% x -0.36%)].

Our Thoughts
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The trade war escalated further in March, with the Trump administration raising the stakes by imposing a 25% tariff on imports from Canada and Mexico, alongside an additional 10% tariff on Chinese goods. This move has re-ignited fears of a potential recession, causing significant drops in equity markets.

‍The US Nasdaq Index plummeted by 8.15%, while the S&P 500 fell by 4.07%, marking the worst monthly decline since September 2022—a period marked by high inflationary pressures that forced central banks worldwide to aggressively hike interest rates.

Despite heavy market downturn, President Trump remained undeterred. In Early April, he proceeded with the 'Liberation Day' tariffs that were both larger and broader than many had anticipated. Not only did Trump make it harder for other countries by employing a tariff formula that inflated the rate of tariff barriers set by US trading partners, but he also imposed harsh tariffs without backing down, even when faced with retaliation—as seen in his ongoing confrontation with China.

Then, he paused the tariff that he announced via social platforms just hours before the tariff officially went into effect.

After the announcement, all other countries will face a 10% tariff, except China, Mexico, and Canada. Imports from China will be hit with a staggering 125% tariff, while Mexico and Canada will continue to face a 25% tariff.

This erratic tariff policy remains one of the biggest puzzles for the rest of the year—or perhaps the remainder of Trump's presidency. His policies are unpredictable, made worse by his tendency to change his mind quickly after announcements, complicating investors' ability to read market movements.

Moreover, tariffs are not the only major policy promise from Trump's election campaign. He is also considering massive tax cuts, which, if announced, could have a short-term positive impact on the equity market.

With so many moving parts in the market, the actual consequences will be very difficult to predict. The interplay of tariffs, tax cuts, and geopolitical tensions creates a complex landscape where strategic foresight and adaptability are essential for navigating the uncertain waters ahead.

One piece of advice is to stay focus with your long-term financial objective and continue to stay invested in a strategically diversified portfolio.
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Discover how MYTHEO can enhance your portfolio diversification today and embark on your financial journey with confidence. Take the first step towards your financial goals now.

This material is subject to MYTHEO’s Notice and Disclaimer.