Israel & Brazil Shine in MarketGrader’s Latest Global Index Report Card

MarketGrader’s US Indexes continue their strong run in 2025, with 21 of our 26 core indexes outpacing their benchmarks through the first three quarters of the year. Their average excess return to date is 473 basis points (bps), while the average excess return across all US core indexes, including those trailing their benchmarks, is 326 bps.

As impressive as these results are, they pale next to the returns of MarketGrader’s international indexes, which have shone even brighter throughout 2025. In fact, the top 24 performing indexes year-to-date in MarketGrader’s latest report card—tracking 65 of our indexes—are all non-US[1]. And few come close to the returns of our two Israel indexes and our two Brazil indexes.

Israel & Brazil Lead Our 2025 YTD Returns

Our Israeli indexes have been standouts not just in 2025, but also over the last 1, 3, and 5 years, which we track regularly in our quarterly index report cards. The MarketGrader Israel Large Cap 30 Index gained 68.1% through September 30, leading its benchmark, the MSCI Israel Index, by 4,307 bps in just nine months. The index has led the benchmark handily over the last 1, 3, and 5 years as well. Its sibling, the MarketGrader Israel All-Cap 40 Index, is not far behind—up 57.7% through September and 3,264 bps ahead of the benchmark. Both MarketGrader Israel indexes are equally weighted, while the benchmark is market-cap weighted. Figure 1 summarizes their returns.

Figure 1. Annualized Total Returns for MarketGrader ‘s Israel Indexes vs. Their Benchmark

While the performance of our Israeli indexes has been hard to match, our Brazilian indexes came close. As in Israel, MarketGrader calculates two Brazil indexes: a large-cap version, designed to serve as core exposure to Brazil’s market, and an all-cap index. And, as in Israel, both MarketGrader Brazil indexes are equally weighted. Unlike Israel—where our large-cap index has led historically—in Brazil our all-cap index has outperformed its larger sibling not only year-to-date, but also over the last 1, 3, and 5 years. Through September 30, the MarketGrader Brazil Large Cap 30 Index gained 50.7%, comfortably leading MSCI Brazil by 1,037 bps, but trailing the MarketGrader Brazil All-Cap Index, which has gained 54.1% YTD. Figure 2 summarizes both indexes’ returns.

Figure 2. Annualized Total Returns for MarketGrader ‘s Brazil Indexes vs. Their Benchmark

Developed Markets

Beyond our Israel indexes, two core exposures within developed markets stand out in our latest report card: our Developed Markets ex-US Income Indexes and our UK Indexes. The MarketGrader Developed Markets ex-US Income 100 and 200 Indexes gained 35% and 34.6% through September, outpacing their benchmark, the MSCI World ex-US High Dividend Yield Index, which returned 25.3%. Notably, both MarketGrader indexes outperformed the benchmark in terms of price and dividend return—a continuation of the trend over the last 3 and 5 years (Figure 3). Over the last three years, the two MarketGrader indexes have produced annualized dividend returns of 7.4% and 7.3%, respectively—significant in markets where dividends are a key component of shareholder payouts, in contrast to the US, where buybacks play a larger role.

Figure 3. Annualized Total Returns for MarketGrader ‘s Developed Markets (ex-US)

Income Indexes vs. Their Benchmark

Our two UK indexes also continue their strong run. Both the MarketGrader UK Large Cap 50 Index and the MarketGrader UK Small Cap 100 Index are outperforming their benchmarks year-to-date by 2,034 bps and 479 bps[2], respectively, and they maintain sizable advantages over the last 1, 3, and 5 years (Figure 4).

Figure 4. Annualized Total Returns for MarketGrader ‘s UK Indexes vs. their Benchmarks

Emerging Markets

Aside from our Brazil indexes, MarketGrader’s China indexes have stood out so far in 2025, as Chinese markets have roared back from a prolonged three-year slump. Among our two core China indexes, the MarketGrader China Large Cap 100 Index has shone brightest in 2025, with a year-to-date return of 39.2%, handily beating its benchmark, the CSI 300 Index, at 23.7%. Our other core index, the MarketGrader China Small Cap 200 Index, trails its benchmark by 639 bps YTD; nevertheless, it maintains healthy advantages over the last 1, 3, and 5 years.

Our two Chinese thematic indexes have also done well. The MarketGrader China New Economy Index—tracked by the ASX-listed VanEck China New Economy ETF (CNEW)—gained 18.7% YTD and 29% in the last year through September 30, outpacing its benchmark, the CSI 800 Index (all returns in AUD). And our MarketGrader New China ESG Index—tracked by VanEck’s New China UCITS ETF (CNEW) and listed across several European exchanges—has had a stellar 2025, up 32.9% YTD, 632 bps ahead of its benchmark, also the CSI 800 Index.

Results across our India indexes were mixed as the market cooled after an exceptional two-year run in 2023 and 2024, which stretched valuations ahead of underlying company fundamentals amid expectations that India is the next go-to emerging market for global investors. While that may still prove true, investors seem to be waiting for the dust to settle after the U.S. imposed 50% tariffs on the country’s exports—well above most other emerging markets. Most India observers expect this tariff level to drop significantly and for India and the U.S. to strike a broader, more comprehensive trade and economic cooperation agenda. This could be a catalyst for improved returns for Indian equities.

Among our Indian indexes, our two core exposures—large and small caps—have done well, while our two thematic, growth-oriented exposures have had mixed results. The MarketGrader India Large Cap 50 Index (EW) leads its benchmark YTD by 593 bps, while the MarketGrader India Small Cap 100 Index (EW) is ahead by 593 bps. Our MarketGrader India All-Cap Growth Leaders Index—tracked in the US by the VanEck India Growth Leaders ETF (GLIN)—has struggled since the market’s correction began about a year ago, with the index down 15.2% through September 30, a larger decline than the benchmark’s −11.1%. It’s worth noting, however, that our index is equally weighted, whereas the benchmark, MSCI India, is not. Even so, our index maintains a healthy 454 bps (annualized) advantage over the benchmark in the last three years. Our other growth-leaning India exposure, the MarketGrader India Growth Leaders 50 Index, has fared better than its all-cap sibling: while down 6.7% over the last year, it leads MSCI India by 440 bps and maintains healthy annualized advantages over the last 3 and 5 years. That index is tracked by the VanEck India Growth Leaders ETF in Australia (ASX: GRIN).

MarketGrader’s Global Index Platform

Across developed and emerging markets alike, MarketGrader’s index platform demonstrates the power of our proprietary Growth-at-a-Reasonable-Price (GARP) and Quality framework. Our intellectual property underpins a broad range of investment solutions—enabling asset managers, ETF sponsors, and wealth managers to build differentiated, research-driven exposures across equities, factors, and geographies. By licensing MarketGrader Indexes, partners can offer disciplined, transparent portfolios designed to capture long-term growth and quality wherever it resides in global equity markets.

For a complete list of MarketGrader Indexes, please visit our index library here.

[1] The MarketGrader Global Index Report Cards do not include all indexes calculated and published by MarketGrader. Certain indexes are excluded for brevity and ease of reference. For a complete list of all MarketGrader Indexes and their latest updated performance, please refer to our complete index library, which is updated daily: https://www.marketgraderindexes.com/indexes/

[2] Results for the MarketGrader UK Indexes and their benchmarks are reported in GBP.