International Report: Q1 2022

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  • Risk-off sentiment prevailed in Q1 2022 as geopolitical tensions flared and the Omicron variant became a stumbling block for many countries.
  • The U.S.-based S&P 500 decreased by 4.6% in Q1 2022, outperforming both the MSCI Emerging Markets Index and MSCI All Country World Index.
  • The Global X MSCI Colombia ETF was the suite’s best performer, returning 21.66% over Q1 2022.

Caucasian businessman giving presentation in a conference room

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The Q1 2022 Global X International Report can be viewed here. The report summarizes market and macroeconomic developments across our International Access suite of ETFs. For a closer look at China Sectors, please see the latest China Sector Report: Q1 2022.


Risk-off sentiment prevailed in Q1 2022 as geopolitical tensions flared and the Omicron variant became a stumbling block for many countries. After Russia launched a war against Ukraine in late February, the potential knock-on effects of sanctions against Russia became a primary concern, particularly for European markets that depend on Russian gas for energy. Meanwhile, the threat of lower food supply from Ukraine and Russia, which collectively account for 28.3% of global wheat production, stoked concerns of food shortages and increased inflation.1 The Omicron variant's spread in China led to lockdowns in the major cities of Shenzhen and Shanghai towards the end of the quarter, which compounded supply chain disruptions around the world.

The U.S.-based S&P 500 decreased by 4.6% in Q1 2022, outperforming both the MSCI Emerging Markets Index (MXEF) and MSCI All Country World Index (MXWD). The MXEF underperformed the MXWD with returns of -6.97% and -5.36%, respectively, reflecting the prevailing risk-off sentiment. Despite challenges in the global economy, nine of Global X's single country and regional funds outperformed the MXWD while only two underperformed.

Global X International Report

Performance commentary is based on the NAVs of the ETFs. Performance shown is past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Returns great than one year are annualized. High short-term performance of the fund is unusual and investors should not expect such performance to be repeated. Returns for periods greater than one year are annualized. For performance data current to the most recent month-end, please click on the fund names above.

Global X International Report
Global X International Report

Notable Performers

The Global X MSCI Colombia ETF (GXG) was the suite's best performer, returning 21.66% over Q1 2022. GXG's performance can be explained in part by its sector breakdown, which results in positions that may benefit from certain trends. Over half of GXG's holdings are in Financials and Energy. Elevated oil prices are likely contributing to higher returns in Energy holdings like Ecopetrol, while rising interest rates are likely contributing to higher returns in Colombian Financials. The upcoming presidential election in May will have important implications for the Energy sector, as Colombia's reliance on oil revenue becomes a key point of contention.

With returns of 13.60%, the Global X MSCI Argentina ETF (ARGT) was the second-best performer. Argentina's negotiations with the International Monetary Fund (IMF) over the refinancing of $45bn in debt made headlines in Q1. The quarter concluded with the news of Argentina successfully securing a deal with the IMF to delay payments on its $45bn of debt to 2026, providing the country with four years of breathing room.2 As inflation remains persistently high at above 50% in each month since June 2021, Argentina has economic challenges to overcome.


The suite's worst performer in Q1 2022 was the Global X DAX Germany ETF (DAX), which returned -11.30% in Q1 2022 as Russia's invasion of Ukraine prompted a scramble among German policymakers to decouple from Russian gas. Furthermore, many German businesses opted to cutback, suspend, or terminate operations in the Russian market. This includes DAX holdings such as Linde, Siemens, SAP, Allianz, Adidas, Bayer and more.

Meanwhile, the Global X MSCI Vietnam ETF (VNAM) only slightly underperformed the MSCI ACWI, delivering returns of -5.43%. Within VNAM's holdings, Industrials and Real Estate dragged down total returns the most with returns of -14.73% and -7.12%, respectively.3 Vietnam continued to suffer from a labor shortage after COVID-19 outbreaks resulted in an exodus of workers away from urban areas. Vietnam pivoted away from the zero-COVID-19 approach in Q4 2021, and the outlook may improve as the country continues to move towards more flexible COVID-19 policies.

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  1. DW. (2022, March 21). Ukraine war increases global food insecurity.
  2. Alcoba, N. (2022, March 18). Argentina's Senate approves IMF deal, avoiding default. Al Jazeera.
  3. Data accessed from Bloomberg Data Management Services. (2022, April 13).

Investing involves risk, including the possible loss of principal. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Securities focusing on a single country and narrowly focused investments may be subject to higher volatility. The Global X International Access Suite Funds are non-diversified.

Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Beginning October 15, 2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates current NAV per share. Prior to October 15, 2020, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time. The returns shown do not represent the returns you would receive if you traded shares at other times. Indices are unmanaged and do not include the effect of fees, expenses or sales charges. One cannot invest directly in an index.

Carefully consider the funds' investment objectives, risks, and charges and expenses. This and other information can be found in the funds' full or summary prospectuses, which may be obtained at Please read the prospectus carefully before investing.

Global X Management Company LLC serves as an advisor to Global X Funds. The Funds are distributed by SEI Investments Distribution Co. (SIDCO), which is not affiliated with Global X Management Company LLC. Global X Funds are not sponsored, endorsed, issued, sold or promoted by MSCI nor does MSCI make any representations regarding the advisability of investing in the Global X Funds. Neither SIDCO nor Global X is affiliated with MSCI.

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Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

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Founded in 2008, Global X is a sponsor of exchange-traded funds (ETFs). We are distinguished by our Thematic Growth, Income, and International ETFs. Explore our insights on the trends and themes shaping global markets – from technology to commodities to emerging economies – at Global X ETFs is a member of the Mirae Asset Global Investments Group. Important disclosures:

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