As a complement to the performance reports of our portfolios at the close of June 2025, here we review the behavior of dollar-denominated ETF portfolios.
It is worth remembering that dollar portfolios are suitable only for investors who have a “dollarized” economy or who explicitly want exposure to the dollar in part of their assets. In other words, returns are measured in dollars, and conversion to another currency may be positive or negative depending on exchange rate movements between the two currencies.
Here we focus on the performance of the Standard Dollar ETF portfolios.
The returns of dollar-denominated ETF portfolios have been excellent at the close of June 2025
The returns at the close of June 2025 of our dollar ETF portfolios have clearly outperformed all portfolios at inbestMe so far this year.
Returns range from 4.5% for profile 1 to 8.7% for profile 10. On average (profiles 1 to 10), the dollar ETF portfolios have accumulated 6.8%, which is 3.4 percentage points less than euro portfolios. Expressed in euros, dollar portfolios would have decreased following the euro’s appreciation against the dollar.
Dollar ETF portfolios maintain superior long-term returns
Our investment portfolios have been designed for the medium to long term. It is over these horizons that we believe they should be analyzed, as indexing shows its greatest advantages here by compounding returns (due to the effect of compound interest) over time.
The cumulative returns of our dollar ETF portfolios since 2017 are truly exceptional, ranging from 33.7% up to 117.2% for profile 10. The average cumulative return is 76.2%. Besides profile 10, profile 9 has also exceeded 100%, reaching 105.2%.
In the top chart, we see the annualized return (TAE) of dollar portfolios ranges from 3.5% for profile 1 to 9.5% for profile 10, averaging 6.8%. The average investor profile at inbestMe is 7 out of 10 and obtains a 7.8% annualized return, 1.5 percentage points above the 6.3% achieved in euro portfolios.
Dollar ETF portfolios have achieved higher returns (6.8%) than their euro equivalents (4.6%), on average 2.2 percentage points more. This difference, although general, is relatively more significant in lower profiles due to the higher yields of dollar bonds. They also generally have higher exposure to equities.
However, they are somewhat more volatile (10% average) than euro portfolios (8% average). When comparing risk-adjusted returns in euros and dollars, these tend to even out.
If your economy is dollarized, or you want to explicitly have part of your assets exposed to the dollar, these portfolios are an excellent diversification option.
