The Q3 2020 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: Q3 2020.


Following a global rally in Q2 which saw strong performance in the US and in international equity markets, Q3 exhibited greater divergence. Each economy took different approaches to fiscal and monetary stimulus and containing the spread of COVID-19, driving varying results in GDP growth, corporate profitability, and ultimately equity returns.

From a high level, the US-based S&P 500 outperformed international developed equity markets during the quarter, returning 8.93% versus 8.13% for the MSCI ACWI Index. Yet emerging markets exceeded both, with the MSCI Emerging Markets Index rising 9.56%, driven by strong growth from China. Within Global X’s suite of single country and regional ETFs, five outperformed the MSCI All World Country Index (NASDAQ:ACWI) while seven lagged.

One and three-month performance is based on the NAVs of the underlying sector ETFs. Performance shown is past performance and does not guarantee future results. High short-term performance of the fund is unusual and investors should not expect such performance to be repeated. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please visit

(1) Fee waivers are contractual and in effect until at least March 1, 2021.

The performance data quoted represents past performance. Past performance 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 for periods greater than one year are annualized. For performance data current to the most recent month end, please call 1-888-493-8631, or visit

Notable Performers

The Global X MSCI Pakistan ETF (NYSEARCA:PAK) was the best-performing single-country ETF within the International Access family, returning 18.05% during the quarter. After a spike in COVID-19 infections in early summer, Pakistan was able to flatten the curve and keep the number of new infections very low, while leaders forged a deal with China to allow the country to distribute potential COVID-19 vaccinations.

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Another top-performing single-country ETF for the quarter was the Global X FTSE Nordic Region ETF (NYSEARCA:GXF), which returned 14.19% in Q3, with strength coming from Sweden’s auto and software industries as global demand ticked back up, while Danish pharmaceuticals and shipping companies also helped boost the region’s returns.

Worst Performers

Among the worst performers for the quarter were the Global X MSCI Portugal ETF (NYSEARCA:PGAL), the Global X MSCI Argentina ETF (NYSEARCA:ARGT), and the Global X FTSE Southeast Asia ETF (NYSEARCA:ASEA).

Portuguese markets turned negative in Q3 as Energy and Financials firms struggled amid a second wave of COVID-19 infections and the virus continued to suppress key tourist driven business activity. As a result, quarterly returns of PGAL were down -2.28%

Argentine markets again pulled back after Argentine authorities introduced a new round of capital controls in an effort to ease the deep recession and prevent further capital flight to protect the country’s dwindling currency reserves. The country also requested talks with the IMF for more support, after finally restructuring $64 billion in debt with the IMF’s help. Argentine farmers also grappled with an outbreak of wildfires in critical soybean-producing regions of the country responsible for roughly half of the nation’s dollar inflows. As a result, ARGT ended the quarter down -2.43%.

Last, a slump in Southeast Asian markets were led by underperformance in the Financials and Communication Services sectors, as well as negative contributions from Thailand and Indonesia. ASEA fared worst among the International Sector ETFs, finishing the quarter down -7.62%.


Countries handling of the COVID-19 pandemic has a major impact on returns this quarter and throughout the year. Results from the quarter only further reflect how bumpy market conditions have been globally. In response to these market swings and COVID-19 resurgences, we’ve seen a number of countries expand their aggressive monetary and fiscal packages aimed to buffer the long-term economic impact of the virus and related lockdowns. These events will shape the economic prospects and policy responses within countries as well as overseas. In the US, for example, greater fiscal spending could put downward pressure on the dollar and in effect give a boost to foreign currencies. Such a chain-linked reaction could entice investors to look towards emerging markets, which may benefit emerging markets disproportionately, as dollar-denominated debt becomes cheaper to service and higher-growth emerging markets offer an alternative to lower-growth developed ones.

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Related ETFs

  • ARGT – Global X MSCI Argentina ETF
  • ASEA – Global X FTSE Southeast Asia ETF
  • CHIL – Global X MSCI China Large-Cap 50 ETF
  • DAX – Global X DAX Germany ETF
  • GREK – The Global X MSCI Greece ETF
  • GXF – Global X FTSE Nordic Region ETF
  • GXG – Global X MSCI Colombia ETF
  • PAK – Global X MSCI Pakistan ETF
  • PGAL – Global X MSCI Portugal ETF
  • NORW – Global X MSCI Norway ETF

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.

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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Original post

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