Global equity markets have bifurcated sharply in 2026. The Iran war, which began on February 27, divided the world's country ETFs along a single fault line — energy trade balance — producing one of the widest performance dispersions across country ETFs in recent market history. Norway is up +24.3% year-to-date. Indonesia is down -17.7%. South Korea surged +35.6% on pre-war technology momentum before reversing hard. Brazil is up +14.1% on commodity tailwinds.

For investors tracking global rotation, CountryETFTracker.com monitors the full universe of U.S.-listed country ETFs in real time — performance, valuation, seasonality, correlation and top holdings for every market. The data in this article is sourced directly from the platform as of March 19, 2026.

This ranking covers the full universe across three dimensions: year-to-date performance, forward P/E valuation and post-February 27 momentum. Together, these three lenses identify which country ETFs have led, which are cheap relative to history and the global benchmark, and which have the strongest or weakest directional signal since the war began.

Year-to-Date Performance Rankings (as of March 19, 2026

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Top 10 Country ETFs by YTD Retur

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South Korea's +35.65% YTD figure is substantially a pre-war story. EWY surged through January and February on semiconductor demand and AI infrastructure spending before the Iran war reversed the trade sharply — the fund has declined approximately -16.7% since February 27. Norway's +24.32% is the opposite: almost entirely a post-war energy windfall compounding onto a modestly positive start to the year.

Brazil's iShares MSCI Brazil ETF (EWZ) at +14.13% reflects the commodity exporter dynamic — Petrobras, Vale and the broader resource complex have all benefited from elevated energy and materials prices since the conflict began. Turkey's +12.52% is driven by a combination of improving fiscal metrics and the country's position as an energy transit hub between Russia and Europe.

Bottom 10 Country ETFs by YTD Retur

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Indonesia's -17.70% is the starkest expression of the energy importer penalty. The country's fuel import bill has exploded since Hormuz disruption began, the rupiah has weakened, and the government has faced pressure to maintain costly fuel subsidies. India's -11.71% reflects a similar structure, compounded by the country's pre-existing fiscal deficit and the rupee's depreciation.

UAE (-6.49%) and Kuwait (-6.17%) represent the painful paradox of conflict-zone energy exporters: they benefit from the oil price but absorb direct geopolitical risk, infrastructure disruption and capital flight. Being a net energy exporter is necessary but not sufficient — geographic insulation from the conflict zone is the second variable that separates Norway from the Gulf states.

Valuation Rankings: The Cheapest and Most Expensive Country ETF

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Forward P/E ratios across the country ETF universe reveal significant valuation dispersion — from Turkey at 7.35x to New Zealand at 39.55x. The MSCI ACWI trades at 18.83x, providing the global benchmark.

Cheapest Country ETFs by Forward P/

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Most Expensive Country ETFs by Forward P/

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South Korea at 10.29x forward P/E stands out as both a momentum leader YTD (+35.65%) and one of the cheapest markets in the universe. The combination of a large pre-war tech rally and a sharp post-war correction has produced a market trading at a 45% discount to the ACWI — a valuation that reflects the oil import shock penalty rather than any deterioration in the fundamental earnings outlook of Samsung, SK Hynix or Hyundai. Indonesia at 11.83x and Brazil at 10.47x are similarly cheap on forward earnings relative to history and to the global benchmark.

Momentum Rankings: Performance Since the Iran War (Feb 27

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The post-February 27 momentum ranking strips out all pre-war noise and isolates the pure geopolitical and energy trade balance signal. It is the single most analytically clean ranking available in the current market environment.

The momentum ranking is the energy trade balance map rendered in equity returns. Every market above zero since February 27 is a net energy exporter with geographic insulation from the conflict zone. Every market significantly below zero is a net energy importer whose import bill has exploded since Hormuz disruption began.

The Combined View: Performance + Valuation + Momentu

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Combining all three dimensions identifies markets with the most compelling risk-reward profiles in the current environment.

Strongest combined score — Energy exporters with valuation support:

ENOR leads on momentum (+5.0% since Feb 27, +24.3% YTD) and trades at 14.33x forward P/E — a 23.9% discount to the ACWI. The combination of earnings expansion, geographic safety and valuation discount is unusual and directly linked to the structural dynamics described above.

EWZ at +14.13% YTD and 10.47x forward P/E represents the deepest value in the energy exporter category. Brazil's energy and materials export exposure provides the same commodity tailwind as Norway, with a far steeper valuation discount.

Compelling value despite war headwinds:

EWY at 10.29x forward P/E and +35.65% YTD has experienced a severe post-war correction. The pre-war tech earnings story — Samsung, SK Hynix, TSMC supply chain — remains structurally intact. The oil shock is a real headwind, but a market trading at a 45% discount to global peers with world-class technology exporters is pricing in a protracted disruption that prediction markets do not confirm beyond Q2.

Avoid or underweight — Expensive + war headwind:

INDA at 21.31x forward P/E — the second most expensive market in the universe after the US — while simultaneously absorbing a -11.71% YTD drawdown driven by energy import costs. Premium valuation plus structural energy headwind is the most challenging combination in the current universe.

Key Takeaway

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The 2026 country ETF rankings as of March 19 reflect a world in which a single geopolitical event — the Iran war — has become the dominant factor driving cross-country equity performance. Energy trade balance is not a background variable; it is the primary return driver. Markets that benefited from pre-war secular trends (South Korea's technology cycle, India's domestic growth premium) have been overwhelmed by the energy cost shock since February 27.

The key forward signals to monitor are the three Polymarket chokepoint markets: Hormuz normalisation probability (26% by April 30), Bab el-Mandeb closure (22% by April 30) and Kharg Island regime change (13% by March 31). These markets define how long the current performance regime persists. A sustained Hormuz disruption through Q2 favours the current momentum leaders. A ceasefire — currently priced at 57% probability by June 30 — would compress the exporter/importer spread and potentially restore the pre-war rotation logic.

Explore the full live rankings, valuation data and performance charts for every country ETF at countryetftracker.com.

Frequently Asked Question

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What is the best performing country ETF in 2026?

As of March 19, 2026, South Korea's iShares MSCI South Korea ETF (EWY) leads at +35.65% YTD, driven by a pre-war technology rally. Norway's iShares MSCI Norway ETF (ENOR) is second at +24.32%, driven almost entirely by the post-February 27 Iran war energy shock.

Which country ETFs are the cheapest by valuation in 2026?

Turkey (TUR) trades at 7.35x forward P/E, the cheapest in the universe. Brazil (EWZ) at 10.47x, South Korea (EWY) at 10.29x and Greece (GREK) at 9.38x also trade at deep discounts to the MSCI ACWI benchmark of 18.83x.

Which country ETFs have performed best since the Iran war began on February 27?

Norway (ENOR) at approximately +5.0%, Malaysia (EWM) at +2.8% and Saudi Arabia (KSA) at +1.7% are the only country ETFs with positive returns since February 27. All three are net energy exporters geographically insulated from the conflict zone.

Where can I track live country ETF performance?

CountryETFTracker.com provides live performance data, valuation metrics, correlation analysis and seasonality patterns for the full universe of U.S.-listed country ETFs, updated in real time.