Poland’s Stock Surge: iShares ETF Delivers Stunning 65% Gains

The iShares MSCI Poland ETF has emerged as one of this year’s standout performers, delivering remarkable returns that have captured investor attention. Through October 23, 2025, this exchange-traded fund has generated impressive year-to-date gains exceeding 65%, establishing itself as a powerhouse in emerging markets exposure.

Market Context and Fund Structure

With assets under management totaling $442 million and an expense ratio of 0.60%, this ETF provides direct access to Polish equities. The fund’s strong performance coincides with the WIG30 Index reaching record highs in late October, propelled by robust showings in the banking and construction sectors.

Concentrated Holdings Drive Performance

This physically replicated ETF maintains positions in 32 securities, with a notable concentration in its top ten holdings representing 64.77% of the portfolio. This focused approach closely ties the fund’s performance to Poland’s largest corporations:

• PKO Bank Polski: 14.08%
• Orlen: 11.67%
• Bank Pekao: 7.46%
• PZU: 7.22%
• KGHM: 4.91%

Sector allocation reveals a substantial emphasis on financials, which constitute 44.25% of the portfolio. Cyclical consumer goods follow at 12.60%, with energy representing 12.17%. Individual components have shown particular strength, with PKN Orlen hitting five-year highs while Bank Pekao reported a 4% increase in net profit for the third quarter.

Should investors sell immediately? Or is it worth buying iShares MSCI Poland ETF?

Performance Metrics and Investor Behavior

The fund’s performance metrics tell a compelling story: a one-month gain of 5.52% coupled with the substantial 65.39% advance since the start of the year. Despite these impressive returns, investor sentiment appears cautious.

Over the past four weeks, the ETF experienced net outflows of $16 million, creating a paradoxical scenario where stellar performance coincides with capital withdrawal. This divergence raises questions about whether the rally has sustainable foundations or if market participants are underestimating Poland’s economic potential.

Competitive Landscape and Market Position

The iShares MSCI Poland ETF maintains its position as the primary US-listed vehicle for comprehensive exposure to Polish equities. While alternatives exist—including the Expat Poland WIG20 UCITS ETF and Amundi MSCI Eastern Europe Ex Russia ETF—this fund offers the most extensive coverage of the Polish market.

The significant transformations within Poland’s financial landscape have created a dynamic center of economic activity that continues to surprise even seasoned market observers. As the rally extends, the critical question remains how long this exceptional performance trend can persist.