10 September 2025
Written by MYTHEO
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Key Takeaways
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• The MYTHEO Izdihar Portfolio soared by a stunning 6.34% (MYR), proving that the technology and AI innovation story is real. Non-US technology stocks unexpectedly surged ahead, stealing the spotlight from US Big Tech.
• The Federal Reserve’s first rate cut of the year, accompanied by signals of further easing, provided an immediate and material lift to long-duration bonds and interest-rate-sensitive assets.
• Rising inflation, easing yields, geopolitical tensions, and Argentina’s currency crisis fuelled a powerful rally in both gold and silver.

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

1. Growth Portfolio

‍MYTHEO’s Growth Portfolio was up by 3.57% (up by 3.16% in MYR) in September 2025.

‍MYTHEO’s Growth Portfolio delivered another strong month, marking its fifth consecutive monthly gain. All ETFs in the portfolio posted positive returns, ranging from 1.03% to 5.14%.

‍Technology stocks had a stellar month. For years, the market has celebrated the rally in US big-tech companies, and global portfolios have consistently benefited from their strength. That trend continued in September, with several of these mega-cap names delivering strong price gains. The US Growth ETF (VUG) captured this momentum, rising 4.58%. Its largest holdings such as Nvidia, Microsoft, Apple, Amazon, Meta and Broadcom all contributed meaningfully, with technology now accounting for slightly more than 50% of VUG’s allocation.

‍The real highlight in September, however, came from technology stocks outside the US, which delivered even stronger returns and created an even bigger impact on overall portfolio performance. This was most evident in emerging market equities (VWO), which led all holdings with a 5.14% increase. The rally was driven by Taiwan Semiconductor Manufacturing Co. (TSMC) together with Chinese technology leaders Tencent, Alibaba and Xiaomi. Technology is the largest sector in VWO, making up 21.5% of its exposure. TSMC alone represents nearly 9%, while Tencent, Alibaba and Xiaomi together contribute another 9%.
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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 Sep 2025.

2. Income Portfolio

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In September 2025, MYTHEO’s Income Portfolio rose by 1.55% in USD terms and gained 1.15% in MYR terms.

‍The month saw a significant positive shift in the bond market. The 10-year US Treasury yield closed at 4.15%, its lowest monthly level since September 2024, when it stood at 3.79%.

‍Falling yields provided strong support for longer-duration assets. The best performer was the US Treasury Bonds ETF (TLT), which invests in securities with maturities of more than 20 years. Lower yields also lifted the Investment Grade Corporate Bonds ETF (LQD), which tends to move closely with Treasuries. With an effective duration of more than eight years, LQD is quite sensitive to rate expectations, and the prospect of more aggressive interest rate cuts in the future.

‍On the other hand, senior loans (SRLN) were negatively affected by the lower interest rate outlook, since coupons received by investors decline when rates fall. This made SRLN the only ETF in the portfolio to record a negative return in September. Meanwhile, short-term corporates (IGSB) and floating-rate bonds (FLOT) were largely unchanged, mainly due to their low sensitivity to adjustments in Federal Reserve policy.
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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 Sep 2025.

3. Inflation Hedge Portfolio

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MYTHEO's Inflation Hedge Portfolio recorded a strong gain of 4.03% (a gain of 3.62% in MYR).

‍Precious metals delivered outstanding performance in September, with gold surging 17.08% and silver rising 11.78%. A combination of economic, market, global trade, and geopolitical factors made both metals highly attractive to investors.

‍Rising inflation expectations and growing anticipation of steeper interest rate cuts further strengthened gold’s appeal as a reliable store of value. At the same time, renewed tariffs under the Trump administration, along with heightened geopolitical tensions from anti-government protests in Indonesia, Nepal, the Philippines, and France, as well as Argentina’s deepening economic crisis, drove additional demand for precious metals as safe-haven assets.

‍Beyond precious metals, clean energy continued to perform positively. The iShares Global Clean Energy ETF (ICLN) posted another solid gain, supported by a strong rebound in solar-related stocks. First Solar, the world’s largest solar energy company and the ETF’s single largest holding at nearly 9.5%, rose 14.52% in September as investors viewed the current Trump policy as providing greater protection from Chinese competitors.
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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 Sep 2025.

4. Global ESG Portfolio

MYTHEO’s Global ESG rose by 2.93% (rose by 2.53% in MYR) in September 2025.

‍The strong performance of technology stocks in emerging markets was the key driver of gains. The iShares ESG Aware EM ETF (ESGE) was the standout performer, rising 7.32%. Much of this came from a sharp rally in non-US technology stocks, with three of ESGE’s top five holdings, Taiwan Semiconductor Manufacturing Co (TSMC), Alibaba Group, and Samsung Electronics, each gaining more than 20% during the month.

‍In the US market, both the iShares ESG Aware USA ETF (ESGU) and the iShares MSCI USA ESG Select ETF (SUSA) advanced by 3.25% and 3.02% respectively. These funds benefited from their significant exposure to US mega-cap technology leaders including Nvidia, Microsoft, Apple, Alphabet, Amazon, and Meta Platforms.

‍On the other hand, the Nuveen ESG Large-Cap Growth ETF (NULG) underperformed with a modest gain of just 0.83%. Although NULG allocates more than 15% to Nvidia, it lacks exposure to several other large-cap technology companies that delivered stronger returns during the month. Its top holdings beyond Nvidia include Broadcom, Visa, Eli Lilly, and Mastercard, all of which posted relatively muted performance in September.
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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 Sep 2025.

5.  Essential Products Portfolio

MYTHEO’s Essential Products portfolio gained 2.83% (increased by 2.43% in MYR) in September 2025.

‍The portfolio’s strength in September was driven largely by a rebound in two alternative energy sectors that had experienced prolonged downturns: EV batteries and solar. Lithium ETF prices extended their rally for a third consecutive month, climbing another 19.79%. As noted previously, tighter supply conditions and regulatory actions in China have kept the market on edge. One of the most significant developments was the suspension of a mining license held by Contemporary Amperex Technology (CATL), the world’s largest EV battery manufacturer.

‍Clean energy was another major contributor to gains. The iShares Global Clean Energy ETF (ICLN) advanced more than 7% for the second month in a row, as investors increased exposure to renewable energy stocks following the US Treasury Department’s August 19 announcement of less restrictive subsidy rules for clean energy projects. Solar remains the dominant segment within ICLN, representing over 26% of its holdings, with First Solar Inc. as the largest individual position at more than 9%.

‍Beyond energy, the Essential Products Portfolio also includes exposure to industries that support critical infrastructures and address trending global issues, such as data centres, food security, and water security. These structural themes offer long-term growth potential. For a detailed discussion, please refer to our special report: MYTHEO Essential Products: The Growth Hidden in Everyday Necessities.
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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 Sep 2025.

6.  Izdihar Portfolio

MYTHEO Izdihar portfolio surged 6.75% in September 2025 (6.34% in MYR).

‍The strong performance in September was driven by the portfolio’s substantial exposure to technology, which accounts for more than half of its allocation. An interesting trend that emerged during the month was the outperformance of non-US technology stocks relative to their US counterparts, adding an additional layer to the portfolio’s return. Even the most laggard asset still delivered 4.79%, underscoring how broad-based the gains were across holdings.

‍The Global Technology ETF (SPTE) advanced 8.64%, clearly reflecting this trend. SPTE maintains a roughly balanced allocation between US and non-US companies, with Apple and Taiwan Semiconductor Manufacturing Co. (TSMC) as its two largest holdings, together representing more than 22% of the ETF. Apple gained 9.13% following the successful launch of the new iPhone 17 series, while TSMC rallied 20.97% on news of record investment by OpenAI and Nvidia unveiled during the month.

‍The SP Funds World ETF (SPWO) also posted solid returns, climbing 7.76%. The gains were primarily driven by TSMC, which comprises nearly 16% of the ETF, and Alibaba, its second-largest holding at approximately 4.8%. Alibaba’s share price surged 32.39% after reporting stronger-than-expected earnings. Investor enthusiasm accelerated further after the company announced a partnership with Nvidia to develop global data centers and unveiled plans to invest US$53 billion into its AI business. This, combined with a 13% revenue increase in its cloud intelligence division and a 32% jump in its international digital commerce segment, deepened investor confidence in Alibaba’s long-term growth trajectory.
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Top 3 ETFs performance (Izdihar products portfolio)

Bottom 3 ETFs performance (Izdihar products portfolio)

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

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

Source: GAX MD Sdn Bhd, Sep 2025
Note: Past performance is not an indication of future performance
Balanced allocation consists of 30% Growth, 47% Income and 23% Inflation Hedge
The Izdihar portfolio YTD performance is calculated from July 17, 2025, aligning with its official launch date.

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 YTD portfolio return in MYR as of September would be 6.94%, calculated as follows: [(30% x 14.55%) + (47% x 0.82%) + (23% x 9.98%)].

Our Thoughts
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September 2025 proved to be a strong month across MYTHEO’s portfolios, driven by a combination of easing bond yields, broadening strength in global technology beyond the US, and renewed momentum in alternative energy and precious metals. The Income Portfolio benefited from lower US Treasury yields, which boosted long-duration bonds.

The MYTHEO Izdihar portfolio was in the spotlight, soaring 6.34% (in MYR), supported by an exceptional rally in technology stocks. While a strong rally in US technology is not unusual, the unexpected strength in non-US tech surprised many investors. This performance demonstrated that innovation in technology and artificial intelligence is no longer confined to the US market.

Investors in the Growth and ESG portfolios also benefited significantly from the strong performance in the technology sector, with portfolios gaining 3.16% and 2.53%, respectively.

Inflation Hedge, also a big winner, gained 3.62% in September, bringing its Year-to-Date (YTD) return to 9.98%. This performance was driven by surging gold and silver that account for 20% of the portfolio’s total holdings.

Another unexpected development was the continued rebound in the Electric Vehicle (EV) battery and solar sectors. This development helped power our Essential Portfolio to a 13.95% gain in the first nine months of this year.

The lesson from September’s performance is clear, in today’s complex and interconnected world, identifying singular winners and losers is increasingly difficult. The most effective strategy remains to invest consistently across diversified asset classes, thereby ensuring participation in every key structural theme shaping global markets.

‍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.