Peter Smith
Some investments are supposed to reward long-term thinking. The Ibex35 ETF isn't one of them. While American investors watched their S&P 500 holdings multiply, Spanish equity investors got a harsh lesson in local market realities. As @creandocartera puts it, this fund's journey has been "good moments and desert crossings" - and there's been way too much desert.
The Rollercoaster Ride That Led Nowhere
As highlighted by Creando cartera, looking at the 14-year chart tells the whole story. The ETF saw genuine recovery moments after 2009, solid rallies in 2013-2015, and another decent run in 2017. Each time, it looked like Spanish stocks might finally break out. Each time, reality hit back harder. The fund currently trades at 166.06€, representing that underwhelming 7.03% cumulative gain since 2008.
The problems run deep. The Ibex35 is loaded with banks and utilities - exactly the sectors that get hammered during every crisis. Spanish political drama and broader European uncertainty don't help either. Then you add global shocks from the eurozone mess to COVID, and you've got a perfect recipe for going nowhere fast.
What This Means for Your Portfolio
The lesson here isn't subtle: betting everything on your home market can be a costly mistake. The Ibex35 ETF still gives you exposure to Spanish companies if that's what you want, but expecting it to match global indices is setting yourself up for disappointment. Sometimes the smart money isn't patient money - it's diversified money.
Peter Smith
