10 June 2025
Written by MYTHEO
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Key Takeaways
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• MYTHEO portfolios rebounded in May with strong gains in Growth, ESG, and Essential Products. Only Income and Inflation Hedge lagged, mainly due to Ringgit strength against the US Dollar.
• Easing trade tensions as the US cut tariffs on China, reached a deal with the UK, and paused EU threats. These moves sparked a surge in investor confidence and lifted global markets.
• Markets roared back. From April’s lows to end of May, the S&P 500 jumped 18.6%, while NASDAQ soared 39.8% — a powerful reminder to stay invested and not let emotions drive decisions.

In this monthly report, we will assess the performance of MYTHEO’s portfolios in light of the financial market developments in May 2025.

1. Growth Portfolio

‍MYTHEO’s Growth Portfolio was up by 4.46% (up by 3.05% in MYR) in May 2025.

MYTHEO’s Growth portfolio staged a strong comeback in May, fueled by a surge in investor risk appetite. The turning point came after a pivotal US-China meeting on May 10–11, where both nations agreed to suspend most previously imposed tariffs, marking a major easing in trade tensions.

Adding to the positive momentum, a landmark ruling by the US Court of International Trade declared that the sweeping tariffs introduced under former President Trump had overstepped executive authority. This legal breakthrough reinforced optimism and further boosted global equity markets, especially growth-oriented stocks.

The Vanguard Growth ETF (VUG), which had underperformed earlier in the year, emerged as a key winner in the rebound.

Canada’s market (EWC) also rallied sharply, benefiting from reduced trade uncertainty thanks to its deep economic ties with the US. Meanwhile, the UK (EWU) posted solid gains after becoming the first country to secure a new trade agreement with the US — giving investors even more reason to cheer.‍‍
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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 May 2025.

2. Income Portfolio

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In May 2025, MYTHEO's Income Portfolio rose by 0.40% (a decrease of 0.96% in MYR).

MYTHEO’s Income portfolio dipped in May, primarily due to the weakening US Dollar, which fell by 1.36% during the month. However, when measured in USD terms, the portfolio actually posted a modest gain of 0.40%.

Among the underlying holdings, only one ETF recorded a negative return in USD — the 20 Plus Year US Treasury ETF (TLT), which came under pressure as bond yields moved higher. The 10-year US Treasury yield rose to 4.397% from 4.167% a month earlier, weighing on long-duration bonds.

Beyond currency and interest rate movements, the bond market showed signs of increased risk appetite. This was reflected in the portfolio’s top performers: SRLN, which invests in loans from lower-rated companies, returned 1.62%, while SJNK, focused on high-yield corporate bonds, gained 1.20%.
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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 May 2025.

3. Inflation Hedge Portfolio

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In May 2025, MYTHEO’s Inflation Hedge Portfolio recorded a gain of 0.58% (a loss of 0.78% in MYR).

Like MYTHEO’s Income portfolio, the Inflation Hedge portfolio was impacted by the weak US Dollar in May. While it gained 0.58% in USD terms, the portfolio posted a 0.78% loss in MYR due to currency depreciation.

A softer dollar made US-based assets less appealing. This was reflected in a 0.94% decline in mortgage real estate (REM) and a 0.44% drop in US real estate (IYR). Agricultural commodities (DBA) also came under pressure, led by a steep 17.20% plunge in coffee prices following signs of a production rebound in Brazil after a prolonged drought in 2024.In contrast, global assets stood out with stronger performance. Global Clean Energy (ICLN) surged over 7%, while global infrastructure (IGF) rose 3.27%, supported by rising energy demand and renewed infrastructure spending driven by the rapid expansion of Artificial Intelligence. Silver (SLV) also gained, as investors saw it as undervalued relative to gold, which has performed strongly throughout the year.
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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 May 2025.

4. Global ESG Portfolio

MYTHEO’s Global ESG rose by 4.68% (rose by 3.26% in MYR) in May 2025.

A strong appetite for risk sparked a sharp rebound in MYTHEO’s Global ESG portfolio in May, with all underlying ETFs finishing the month in positive territory. Many earlier laggards turned into standout performers, outpacing the broader market.

A clear trend took shape — US-based and Growth-focused ESG ETFs led the charge, outperforming those with international exposure and Value-oriented strategies. The top gainers included the ESG Large Cap Growth ETF (NULG), MSCI USA ESG Select ETF (SUSA), and ESG Aware MSCI USA ETF (ESGU), which rose 6.35%, 4.37%, and 4.34%, respectively.

Meanwhile, the portfolio’s more modest performers were the ESG Aware Emerging Markets ETF (ESGE), ESG Large Cap Value ETF (ESLV), and ESG Aware EAFE ETF (ESGD), with gains of 1.10%, 2.25%, and 3.01%, 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 May 2025.

5.  Essential Products Portfolio

MYTHEO’s Essential Products portfolio gains by 3.99% (increased by 2.58% in MYR) in May 2025.

The MYTHEO Essential Products portfolio delivered a strong performance in May, led by impressive gains in the alternative energy sector. Wind Energy (FAN) surged 8.23%, while Clean Energy advanced 7.01%. The rally was driven by the European Union’s updated National Energy and Climate Plans, which reaffirmed its ambition to reduce greenhouse gas emissions by 54% from 1990 levels by 2030 — just shy of its 55% official target.

On the other hand, the Lithium ETF (LIT) continued to face headwinds, declining further after a global energy research firm forecasted a potential lithium oversupply through the end of the decade. While this near-term outlook weighs on sentiment, long-term structural demand from electric vehicles and battery storage still underpins the strategic relevance of lithium in the energy transition.
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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 May 2025.

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

Source: GAX MD Sdn Bhd, May 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 May would be 0.32%, calculated as follows: [(30% x 1.73%) + (47% x -1.03%) + (23% x 1.23%)].

Our Thoughts
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The market extended its impressive rally that began in early April, driven by major progress in global trade talks and a noticeable shift in investor sentiment. In May 2025, the S&P 500 delivered a strong return of 6.15%, while the NASDAQ outperformed with an even more robust gain of 9.04%.

‍This upward momentum was fueled by a series of encouraging trade-related developments signaling a potential easing of global tensions. It all started on May 8, when the United States and the United Kingdom announced a new trade agreement, the first since the Trump administration imposed global and reciprocal tariffs earlier in April. Although the deal’s direct economic impact was limited given the US’s existing trade surplus with the UK, it was an important diplomatic milestone, suggesting more such agreements could be on the horizon.

The most significant breakthrough came on May 13, when the US and China agreed to a 90-day pause in their escalating trade conflict. Following high-level negotiations in Switzerland, both countries committed to substantial tariff reductions as a foundation for a broader deal. Beginning May 14, US tariffs on Chinese imports were slashed from 145% to 30%, while China reciprocated by lowering additional tariffs on US goods from 125% to 10%. This dramatic de-escalation sparked a surge in market confidence.

Further relief came on May 25, when President Trump postponed his threat to raise tariffs on European Union imports from 25% to 50%, agreeing instead to extend the deadline for reaching a trade deal with the EU to July 19. While the existing 25% tariffs remained in place, the decision to hold off on escalating tariffs was welcomed by markets as it created room for continued negotiations with Europe.

On May 28, optimism deepened when the United States Court of International Trade ruled that Trump’s use of executive authority to impose global and reciprocal tariffs under emergency law was unlawful. Although the Court of Appeals temporarily paused the ruling following an appeal, investors viewed the initial decision as a positive sign, raising hopes that unilateral tariff actions could face stronger legal challenges moving forward.

Despite the initial shock from President Trump’s tariff announcements and the resulting trade turmoil, markets staged a remarkable recovery. From the low point on April 8, 2025, the S&P 500 climbed 18.64% by the end of May, while the NASDAQ Composite soared an extraordinary 39.78%. This impressive rebound highlight the significant opportunities available to investors who remained focused and acted decisively, even amid negative headlines like the April 2 tariff announcement. Clearly, those who seized the moment benefited in a big way.

What’s the takeaway?

Successful investing requires keeping an eye on long-term trends while being ready to act when short-term volatility creates opportunities, especially during periods of policy-driven uncertainty. The strong comeback of the S&P 500 and the even more striking rebound in the NASDAQ show the value of patience, discipline, and staying informed. Instead of reacting impulsively to market noise, investors who stay calm and focus on the bigger picture are best positioned to ride the market’s upward trajectory.
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This material is subject to MYTHEO’s Notice and Disclaimer.