## [# Best Performing ETFs Of 2021](/sections/news/best-performing-etfs-2021)
# Best Performing ETFs Of 2021
The top performers gained from 61% to 283% over the course of 2021.
[](/contributors/jessica-ferringer)
[By Jessica Ferringer](/contributors/jessica-ferringer)
Jan 04, 2022
Edited by: Jessica Ferringer
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Developed equity markets around the world saw strong gains in 2021, with domestic equity markets leading international for yet another year. Large cap equities, as represented by the [**SPDR S&P 500 ETF Trust (SPY)**](https://www.etf.com/SPY) notched a 28.7% gain. Small cap equities, as represented by the [**iShares Russell 2000 ETF (IWM)**](https://www.etf.com/iwm) rose by 14.5%.
Developed international markets as represented by the [**iShares MSCI EAFE ETF (EFA)**](https://www.etf.com/EFA) trailed SPY significantly, gaining just 11.5% for the year. And emerging market equities, as represented by the [**iShares MSCI Emerging Markets ETF (EEM)**](https://www.etf.com/EEM) were on a downward trend for the second half of the year, ending in a loss of 3.6%.
Natural gas and energy ETFs dominated the list of best-performing ETFs for the year, with carbon credit strategies, rare metals, coffee futures and freight futures also making an appearance.
**Best-Performing ETFs Of 2021 (Ex. Leveraged/Inverse)**
TickerFund2021 Return**[BDRY](https://www.etf.com/BDRY)****[Breakwave Dry Bulk Shipping ETF](https://www.etf.com/BDRY)****282.99%****[GRN](https://www.etf.com/GRN)****[iPath Series B Carbon ETN](https://www.etf.com/GRN)****147.21%****[JJT](https://www.etf.com/JJT)****[iPath Series B Bloomberg Tin Subindex Total Return ETN](https://www.etf.com/JJT)****119.91%****[KRBN](https://www.etf.com/KRBN)****[KraneShares Global Carbon Strategy ETF](https://www.etf.com/KRBN)****107.69%****[FCG](https://www.etf.com/FCG)****[First Trust Natural Gas ETF](https://www.etf.com/FCG)****98.48%****[PXE](https://www.etf.com/PXE)****[Invesco Dynamic Energy Exploration & Production ETF](https://www.etf.com/PXE)****94.04%****[REMX](https://www.etf.com/REMX)****[VanEck Rare Earth/Strategic Metals ETF](https://www.etf.com/REMX)****79.81%****[URNM](https://www.etf.com/URNM)****[North Shore Global Uranium Mining ETF](https://www.etf.com/URNM)****78.32%****[IEO](https://www.etf.com/IEO)****[iShares U.S. Oil & Gas Exploration & Production ETF](https://www.etf.com/IEO)****75.56%****[PXI](https://www.etf.com/PXI)****[Invesco DWA Energy Momentum ETF](https://www.etf.com/PXI)****75.05%****[FTXN](https://www.etf.com/FTXN)****[First Trust Nasdaq Oil & Gas ETF](https://www.etf.com/FTXN)****69.21%****[UGA](https://www.etf.com/UGA)****[United States Gasoline Fund LP](https://www.etf.com/UGA)****68.49%****[XOP](https://www.etf.com/XOP)****[SPDR S&P Oil & Gas Exploration & Production ETF](https://www.etf.com/XOP)****66.74%****[OIL](https://www.etf.com/OIL)****[iPath Pure Beta Crude Oil ETN](https://www.etf.com/OIL)****66.17%****[USO](https://www.etf.com/USO)****[United States Oil Fund LP](https://www.etf.com/USO)****64.68%****[JO](https://www.etf.com/JO)****[iPath Series B Bloomberg Coffee Subindex Total Return ETN](https://www.etf.com/JO)****63.65%****[USL](https://www.etf.com/USL)****[United States 12 Month Oil Fund LP](https://www.etf.com/USL)****62.48%****[BNO](https://www.etf.com/BNO)****[United States Brent Oil Fund LP](https://www.etf.com/BNO)****62.34%****[RJN](https://www.etf.com/RJN)****[Elements Rogers International Commodity Index-Energy TR ETN](https://www.etf.com/RJN)****61.96%****[DBO](https://www.etf.com/DBO)****[Invesco DB Oil Fund](https://www.etf.com/DBO)****60.74%***Data measures total returns for the year-to-date period through Dec. 31, 2021*
**Energy Booms**
Natural gas and energy prices soared over the course of the year. As economies around the world recovered from the pandemic, the higher level of demand caused energy prices to spike. The supply side also saw disruptions over the course of the year, adding to price pressure.
ETFs that are focused on the exploration and production side were some of the best performers for the year. The [**First Trust Natural Gas ETF (FCG)**,](https://www.etf.com/FCG) a fund that tracks an index of companies that derive a substantial portion of revenue from the exploration and production of natural gas, gained 98.5% over the course of 2021.
More broad-based energy funds also made the list. The [**Invesco Dynamic Energy Exploration & Production ETF (PXE)**](https://www.etf.com/PXE) focuses on companies involved in the exploration and production of oil & gas. The fund was up 94% for the year.
Several carbon credit funds also made the list. The [**iPath Series B Carbon ETN (GRN)**](https://www.etf.com/GRN) and the [**KraneShares Global Carbon ETF (KRBN**)](https://www.etf.com/KRBN) invest in the global carbon credit market and were up 147.2% and 107.7%, respectively, with particularly strong gains in the fourth quarter.
**Rare Earth ETFs Shine**
Uranium and rare earth ETFs rocketed higher, with Reddit being partially responsible for the surge of the [**North Shore Global Uranium Mining ETF (URNM)**](https://www.etf.com/URNM), which gained 78.3% this year. However, there is also rising demand for the metal due to growing support for nuclear energy as a clean alternative to fossil fuels.
The [**VanEck Rare Earth/Strategic Metals ETF (REMX)**](https://www.etf.com/REMX) also had a strong year, gaining 79.8%. This ETF tracks an index of global companies that mine, refine or recycle rare earth and strategic metals. These metals are used in the production of tech components and electric vehicles, the latter of which got a boost from the infrastructure bill’s passage in November.
**Supply Chain Snarls Boost ETFs**
The [**iPath Series B Bloomberg Coffee Subindex Total Return ETN (JO)**](https://www.etf.com/JO) entered the best performers list after coffee futures hit their highest levels in a decade in December. Supply chain issues and shortages in container capacity combined with drought and frost that hit crops earlier this year are behind the surge.
But the impact of the global supply chain crisis is most evident in 2021’s top-performing ETF, the [**Breakwave Dry Bulk Shipping ETF (BDRY)**](https://www.etf.com/BDRY). Though the ETF fell by more than 18% in the fourth quarter, BDRY still logged a 283% gain over the course of 2021.
This fund’s performance has been driven by supply chain inefficiencies that have caused the cost of ocean freight to increase at an exponential rate.
*Contact Jessica Ferringer at* [*jferringer@etf.com*](mailto:jferringer@etf.com) *and follow her on* [*Twitter*](https://twitter.com/JessFerringer)
[ Jessica Ferringer ](/contributors/jessica-ferringer)
Jessica Ferringer, CFA, is a writer and analyst for etf.com. She has 10 years of experience in investment research and due diligence, including… [View Bio](/contributors/jessica-ferringer)
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