ASEAN, Inc.: +17.8% Annually Since December 31, 2024 — How Southeast Asia Quietly Outperformed Amid Global Conflict

Key Takeaways

• ASEAN Inc. returned +22.8% total, +17.8% annualized through Apr 2026
• Vietnam ETF surged +58.3%, aided by upgrade to secondary emerging market
• Singapore ETF posted +37.9% gain, driven by higher earnings growth
• Malaysia and Indonesia showed strong earnings growth despite pessimistic sentiment
• ASEAN’s diversification delivered outperformance vs S&P 500 and near‑emerging‑market returns

Pulse Analysis

Southeast Asia’s collective equity performance has been captured in a novel construct called ASEAN, Inc., which allocates equal capital to seven country‑specific ETFs and a regional top‑40 fund. By tracking the basket from the end of 2024 to early 2026, the portfolio delivered a striking +22.8% total return, translating to a 17.8% annualized gain. Compared with the Vanguard S&P 500 Index Fund’s 12.8% annualized return and the Vanguard Emerging Markets Index’s 23.8%, ASEAN, Inc. proved that a diversified ASEAN exposure can sit comfortably between developed‑market stability and broader emerging‑market volatility.

Vietnam emerged as the standout driver, posting a +58.3% surge after FT Russell upgraded the country to secondary emerging‑market status. The reclassification is set to trigger a phased four‑tranche inclusion by index funds, potentially channeling $6‑10 billion of foreign capital over the next two years. Coupled with a modest 14.5× price‑to‑earnings multiple and projected 15% earnings growth, the upgrade underscores Vietnam’s transition from speculative rally to fundamentals‑backed expansion. Singapore, Thailand and Malaysia also delivered double‑digit returns, each buoyed by improving earnings outlooks and, in Singapore’s case, its role as a regional financial hub.

For investors, the ASEAN, Inc. case study reinforces the value of regional diversification beyond single‑country bets. The portfolio’s resilience amid the US‑Iran conflict highlights Southeast Asia’s structural strengths: youthful demographics, ongoing urbanisation, and a strategic shift of supply chains away from China. As global trade patterns fragment, capital is likely to gravitate toward markets that combine growth potential with relative stability, positioning ASEAN as a compelling long‑term allocation for risk‑aware portfolios.