Commercial city of Gdansk: Eastern Europe is on the upper. (Photo: Freepik, Eyeem)
While diplomacy is struggling with a ceasefire in Ukraine, investors are already undergoing morning air: the reconstruction of the war -destroyed country could ignite an economic sturge for all of Eastern Europe. Funds and ETFs for the Eastern Europe region – from Boomland Poland Via Austria to the Balkans – with the focus of infrastructure, banks and industry offer opportunities.
Austria takes a key role as a bridge between West and East and brings know-how and capital to the region. We present 5 promising investment vehicles.
Economic departure: Eastern Europe as a new hotspot
The signs are on growth: While Germany is fighting with stagnation, the EU Commission for Poland expects Poland in 2025 with an increase of 3.6 percent, Hungary and the Czech Republic will recommend with similarly robust. Even Greece, once a problem child of the euro zone, is 2.3 percent above the EU average. Drivers are EU funding billions, low wage costs and a young, well-trained population.
German companies are increasingly relying on the region: every second company surveyed in a KPMG study is planning to deposit production to Eastern Europe. Poland in particular, now the fourth most important sales market for German exports, benefits from this. “The region has long since become a major pillar of the German economy,” emphasizes Cathrina Claas-Mühlhäuser, chairwoman of the East Committee of the German Economy.
Austria acts as an economic bridge: With strong banks such as the first Group and Raiffeisen Bank International as well as long -term trade relationships with Eastern European countries, the country plays a central role in capital allocation and knowledge transfer in the region.
Stock -up barometer: Eastern Europe on the upper
The spirit of optimism is also reflected on the stock exchanges: the ATX has been in plus almost 15 percent since the beginning of 2025, and even 30 percent over the annual perspective. The development of the MSCI Emerging Market Eastern Europe Ex Russia Index, which in the meantime increased 20 percent in 2025 and won a whopping 56 percent in 2025.
Regional guiding indices such as the Hungarian Bux (plus 13 percent in 2025) and the Greek FTSE athex index (plus 10 percent this year, plus 82 percent in 3 years) also show strong performance – and that is still low. With Course-profit conditions (KGV) Often in the single -digit area, the Eastern European stock exchanges are among the cheapest worldwide.
Peace as a catalyst: the Ukraine scenario
The financial markets are already praising a possible end of the war. UBS UKRAINE RECONSTRUCTION Index, which focuses on 25 stocks of companies that are expected to benefit from reconstruction, recently reached record heights, driven by the performance of construction and infrastructure companies.
Bernd Meyer, chief lagarge and head of Multi Asset near Berenberg, is convinced that the effects of an armistice in Ukraine are underestimated on the financial markets and expects a continuation of the rally. The World Bank estimates the need for reconstruction at over $ 500 billion-three times the Ukrainian economic output before the war.
The neighboring countries in particular should benefit from this development: Polish banks such as PKO BP and PEKAO SA are already financing projects, German corporations provide machines and Austrian cement manufacturers such as Wienerberger cover the need for construction. Should Russian gas also flow again, JP Morgan predicts energy prices that could be far below the current level, which would mean a significant boost for industry.
Trump factor: How the US President endangers the Eastern Europe euphoria
The success story of Eastern Europe is closely associated with the political stability of the past decades. However, this stability could be endangered by a man’s policy: Donald Trump. The 78-year-old US President, known for his unpredictable foreign policy and his preference for trade wars, has raised the Angestindex VIX.
His politics could hit the fragile young democracies hard in Eastern Europe. Although direct US exports from Eastern Europe are manageable (Lithuania is the most exposed to 5 percent), an escalation of the region’s trade war could indirectly harm. Especially when the German economy, which is an important trading partner, suffers from US tariffs.
The role of NATO: The protective shield for Eastern Europe is crumbling
However, the political uncertainty that Trump causes is more serious than the economic consequences. His statements on Ukraine and his approach to Vladimir Putin fear that the United States could give up its role as a protective power in Europe. A “dictation peace” that is negotiated with Russia past European democracies could encourage Russia to continue its aggressive politics.
NATO, the western defense alliance dominated by the USA, was a guarantee of the stability and security of Eastern Europe. A crumbling US protective shield would endanger this stability and slow down the economic development of the region.
In view of these risks, Eastern European countries rely on diplomacy. They try to make Trump mild mild, be it through high defense spending (such as Poland) or through personal approaches (such as the Hungarian Prime Minister Viktor Orbán). It remains to be seen whether these strategies will be successful.
Focus on Eastern Europe: These funds and ETFs rely on the chances
While investors are often looking at the USA or Asia, Eastern Europe offers unexpected opportunities – if you know where to search. Whether active funds with a stick picker strategy or wide scattering ETFs: We portray 5 products that specialize in the dynamic markets between the Balkans and the Baltic States.
1. Trigon New Europe Fund (ISIN: LU0323575421): The evaluation champion
With a 3-year performance of plus 101.34 percent and a rich growth of 540 percent since 2009 was edited Trigon New Europe Fund, How to draw value in Eastern Europe. Manager Mehis Raud relies on an “Under-the-Radar” portfolio: Companies from Poland, Hungary or Kazakhstan, which are rated with an average KGV of only 7.4 absurd.
Top-Holdings like the Hungarian Gedeon Richter (Pharma), Raiffeisen Bank International (Austria) or the Polish insurer PTU. They combine stable cash flows with growth potential. The fund has increased 11 percent since the beginning of the year-proof that value investing also works in emerging countries.
2. East Capital Balkans (ISIN: LU0332316016): Balkan Renaissance with Sweden charm
The Swedes of East Capital, active in Eastern Europe since 1997, are sensed to the next big thing in the Balkans. Your focus: Greece (growth driver after the debt crisis), Türkiye and Slovenia. Manager Peter Elam Håkansson relies on financial values such as the Romanian Banca Transilvania or the first Group Bank, but mixes the portfolio with curiosities such as the Moldovian Premium Weingut Château Purcari (founded in 1827!).
The East Capital Balkans Fund by 109 percent – despite the current sideways (plus 5 percent in the current year). Anyone who believes in the Balkans as “Next Big Thing” is right here.
3. Avaron Emerging Europe (ISIN: EE3600108866): ESG meets Stockpicking
Valdur Jaht and Peter Priisalm manage this niche fund with +106 percent in five years no less – and without external analysts. Your recipe: strict focus on quality companies with strong management and ESG criteria. 2 thirds of the 30-40 positions are small and midcaps (less than 3 billion euros), focus is on Greece, Poland and Romania.
Top-Holdings such as Coca-Cola HBC (Greece) or the Polish energy giant Orlen show the mixture of stability and growth. With a volatility below the industry average, the fund is also suitable for rather careful Eastern Europe investors.
4. Amundi Eastern Europe ex Russia ETF (ISIN: LU1900066462): The Eastern Europe Base for ETF fans
If you are forced to avoid Russia, but still want to invest in Eastern Europe this ETF. He tracks the Msci Eastern Europe ex Russia Index with a focus on Poland (45 percent), Czech Republic (30 percent) and Hungary (20 percent). The ETF has titles such as PKO Bank Polski, Dino Polska (retail) or the Czech energy group CEZ via swap replication. With plus 58 percent in 3 years and low costs, the product is ideal for passive investors who want to rely on the long -term transformation of the region.
5. Ishares ATX ETF (ISIN: DE000A0D8Q23): Austria as Eastern Europe proxy
The Ishares ATX Filts the Viennese leading index – and thus Austria’s role as a bridge head to Eastern Europe. Top positions such as the first Group Bank, OMV or Wienerberger AG benefit from trade flows to Ukraine and neighboring countries. With plus 36 percent in 3 years, the ETF is an indirect game for the reconstruction of Eastern Europe. The highlight: Due to the weighting limit of 20 percent in the index, the lump risk remains manageable.
Conclusion
Eastern Europe is not a unit market – here the right strategy decides. Active funds such as Trigon or Avaron score with local know-how, ETFs such as Amundi or Ishares offer inexpensive exposure. If you want to keep the region in your portfolio, you should mix both approaches: stick pickers for alpha, ETFs for the silent basis. The numbers show: With patience, the adventure is worthwhile east of the EU border, especially since the Eastern European markets are cheaply rated in global comparison.
Disclaimer:
No investment advice. No call to buy or sell securities.
About the author
Sven Stoll
Sven was born in Suhl/Thuringia in 1969. He has been dealing with financial issues, business and investment funds since the 1990s. He has been investing in actively managed funds for many years and benefits from numerous contacts in the industry as well as regular discussions with renowned portfolio managers. Sven is a full -time fund analyst at GSR GmbH.
