The Spanish stock market shines in Europe’s “Champions League”: here’s how MAPFRE AM's Iberian funds are doing

“Yo soy español, español, español…” Anyone who calls themselves a Spanish soccer fan (and even those who don’t) has chanted this at some point to celebrate the victories of the Spanish national football team. This year, more than one investor with exposure to the Spanish stock market might feel like singing that familiar tune—or may have already done so—thanks to the strong performance of domestic stocks.

The Ibex 35 has been turning heads with above-average returns. Driven by the banking and energy sectors, the benchmark index of the Spanish stock market has gained over 21% so far in 2025 (as of June 6). It closed May above the 14,000-point mark, marking its third-best May on record with a 6.5% increase.

Between January and June, the Ibex 35 has outperformed both the Euro Stoxx 50—which has delivered a return of around 10%—and the U.S. S&P 500, which has seen a modest gain of just 1% (as of June 6).

The most profitable of the year

In recent months, the main European markets have been influenced by two decisive forces: on the one hand, the European Central Bank (ECB) began to reduce interest rates after a period of increase to contain inflation. The last decrease was in June 2025, when the ECB cut the deposit rate to 2%, its eighth decrease in one year.

On the other hand, there is still hope that the economy of the EU region will strengthen, with a rebound in business activity across the Eurozone driven by improving domestic demand and Brussels’ plans to boost growth.

In this context, it’s important to remember the strong position of the Spanish economy. In the first quarter of 2025, GDP grew by 2.8% year-on-year, well above the Eurozone’s average increase of 1.2%. And although the current economic outlook remains uncertain due to trade tensions and geopolitical conflicts, forecasts from institutions like the International Monetary Fund (IMF) paint a moderately positive picture, considering the impact of tariffs imposed by Donald Trump on the Spanish economy to be very limited.  

In the sectoral review, it is worth highlighting the strength shown by the Spanish banking sector. Return on equity (ROE) remains high at 14.1% in 2024, according to the Bank of Spain. This has provided overall support for the Ibex 35, where financial institutions account for more than 35% of the index.

But it’s not only Spanish financial institutions driving the Spanish stock market; energy companies like Iberdrola have also played a key role, reaching a new all-time high above €16 per share in May and recording a 17.6% rise so far in 2025. Overall, the relatively low presence of industries such as automotive, luxury goods, technology, pharmaceuticals, and cyclical consumer goods in the index has worked in favor of the Spanish stock market’s relative performance compared to its European counterparts. At the same time, sectors that are more defensive and less sensitive to trade wars, such as telecommunications, utilities, and construction/concessions have made a decisive contribution to the good performance of the Ibex.

In this context, the Spanish Stock Exchange has managed to position itself as the one with the best performance in the old continent. Thanks to this, as of June 6, 2025, equity funds focused on the Spanish market have achieved a return of 22.5% so far this year. Surpassing others, such as Italian equities, which gained 20% over the same period, or Chinese equities, which have only risen 2.26% since January.

MAPFRE AM: the “winning lineup” of Iberian funds

Within this context, MAPFRE AM’s Iberian equity funds have brought plenty of good news to investors looking to capitalize on the strength of the Spanish (and also Portuguese) market.

“We are seeing a very strong moment for the Spanish stock market, which had already experienced two positive years. But now, we’re also noticing that not only large-cap stocks are rising, but mid- and small-cap stocks as well,” explains Javier Miralles, an equity fund manager at MAPFRE AM and Fondmapfre Bolsa Iberia, who believes that “the market is refocusing on previously overlooked companies,” making this “a very good opportunity for active management.”

“The dynamics are very favorable for an investing approach like the one we apply at MAPFRE AM and in our Iberia-focused funds,” adds Javier Miralles, who expects this trend to continue over time and keep delivering significant positive returns.

Fondmapfre Bolsa Iberia

This fund focuses on companies from Spain and Portugal, with a stock-picking strategy based on fundamental analysis, investing primarily in medium and small caps. So far in 2025 (as of June 6, 2025), it has achieved a return close to 22%. Over two years, the annualized return stands at 19%. It manages assets exceeding €16 million. Among its main holdings are the following companies: Almirall, Grupo Catalana Occidente, and CAF. The following table shows the first 10 positions of the fund.

Compared to the previous year, this fund continues to back Almirall SA as its top holding, while placing Grenergy Renovables SA as its second most important position, replacing Construcciones y Auxiliar de Ferrocarriles.

MAPFRE AM Iberian Equities

With a similar approach, this fund also reached returns of more than 22% in the same period (as on June 6, 2025). Over two years, the annualized return stands at 19.3%. It was recently classified as an Article 8 fund under the Sustainable Finance Disclosure Regulation (SFDR), incorporating environmental, social, and governance (ESG) criteria into its investment process. It manages assets close to €39 million. The following table shows the fund’s ten largest holdings.