As 2025 draws to a close, global capital markets have experienced heightened volatility, with QDII funds—a crucial bridge connecting domestic investors to overseas assets—under close scrutiny. However, not all overseas investments have yielded positive returns this year.
According to data, 43 QDII funds have underperformed the market this year, stuck in negative territory. Among them, E Fund Crude Oil (QDII-LOF-FOF) C (RMB) recorded the worst performance, with a year-to-date return of -14.03%, earning it the title of the "worst-performing QDII fund." The lagging funds show clear sector concentration, with energy, real estate, and Middle East-focused products under significant pressure.
Besides E Fund, other poor performers include Crude Oil LOF (-11.65%), Huatai-PineBridge Saudi Arabia ETF (-11.64%), and Saudi Arabia ETF (-11.39%), all declining over 11%. Three of these are Saudi or crude oil-themed funds, reflecting the impact of weak oil prices and Middle East geopolitical risks on related assets.
Why have crude oil and Saudi-themed QDIIs performed so poorly? The global energy market underwent sharp adjustments in 2025. Despite initial expectations that OPEC+ production cuts would support oil prices, sluggish economic recovery and accelerated renewable energy adoption led to weaker-than-expected crude demand, driving Brent and WTI prices lower. Additionally, Saudi stocks suffered due to slower economic reforms and foreign capital outflows, dragging down related ETFs.
Real estate-focused QDIIs also struggled. Penghua U.S. Real Estate (QDII) RMB (-11.28%) and Lion Global Income Real Estate (QDII) (-9.52%) both ranked among the bottom ten. This reflects the Fed’s prolonged high-interest-rate policy, which raised financing costs and pressured valuations for U.S. commercial real estate, leading to a broad REITs downturn.
More concerning, some seemingly diversified FOF-style QDIIs also faltered. E Fund Crude Oil (QDII-LOF-FOF), despite its fund-of-funds structure, remained heavily exposed to energy, failing to hedge against sector-specific risks and becoming the year’s worst-performing QDII.
This disappointing ranking serves as a reminder that while QDII funds expand investment horizons, they are subject to currency fluctuations, overseas policies, and sector cycles, making them far more volatile than A-share funds.
Looking ahead to 2026, global macroeconomic uncertainty persists. Investors are advised to avoid overconcentration in single countries or sectors, opting instead for funds with strong research capabilities and robust risk controls. Dollar-cost averaging may help mitigate volatility, rather than making large one-time bets. The 2025 performance divergence reaffirms that overseas investing is no guarantee of success—expertise and patience remain key to navigating market cycles.
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