The Best- and Worst-Performing ETFs of Q1 2025
- Top-performing ETFs during the first quarter of 2025 benefited from trade war worries.
- Fear extended to cryptocurrency declines during the quarter.
- Gold miners won the quarterly performance race.
What the best ETFs and worst ETFs have in common is fear.
The top-performing exchange-traded funds during the first quarter of 2025, led by the WisdomTree Efficient Gold Plus Gold Miners Strategy Fund (GDMN), all benefited from fears of an escalating trade war. The bottom performers, the worst being the ARK 21Shares Active Ethereum Futures Strategy ETF (ARKZ), were all Ethereum ETFs.
Fear of an escalating and prolonged trade war, compounded by geopolitical turmoil and the potential of higher inflation and a recession, has investors fleeing to gold, the oldest and best-known safe-haven asset.
The fear extended to cryptocurrency declines during the first quarter, especially Ethereum ETFs, following a combination of risk-off sentiment and the perception of lackluster crypto support from the Trump administration.
5 Best-Performing ETFs of Q1 2025
Gold-mining ETFs were the top performers during the first quarter, with GDMN rising more than 50% and two others, the Themes Gold Miners ETF (AUMI) and the iShares MSCI Global Gold Miners ETF (RING), in the top five. European stock ETFs, particularly in the aerospace and defense sectors, were also big winners as trade uncertainty mounted and Russia-Ukraine tensions threatened stability in Eastern Europe.
China tech stock ETFs were also standouts, as the YieldMax BABA Option Income Strategy ETF (BABO), an options strategy ETF that generates income by writing call options on Alibaba stock, rose more than 38% in the quarter.
| Ticker | Fund | Expense Ratio | AUM | Q1 Return |
| GDMN | WisdomTree Efficient Gold Plus Gold Miners Strategy Fund | 0.45% | $25.6M | 51.5% |
| EUAD | Select STOXX Europe Aerospace & Defense ETF | 0.5% | $468.1M | 38.5% |
| BABO | YieldMax BABA Option Income Strategy ETF | 1.07% | $53.2M | 38.2% |
| AUMI | Themes Gold Miners ETF | 0.35% | $7.6M | 37.3% |
| RING | iShares MSCI Global Gold Miners ETF | 0.39% | $1.3B | 36.8% |
5 Worst-Performing ETFs of Q1 2025
The bottom five worst-performing ETFs in the first quarter are all Ethereum ETFs. Over the past three months, Ether's price plummeted by 40%, as the "Trump bump" and momentum for the broader crypto market waned. Ethereum also faced intensified competition from alternative blockchain platforms like Solana and Cardano.
| Ticker | Fund | Expense Ratio | AUM | Q1 Return |
| ARKZ | ARK 21Shares Active Ethereum Futures Strategy ETF | 0.7% | $4.8M | -46.5% |
| EETH | ProShares Ether Strategy ETF | 0.95% | $42.7M | -46.4% |
| ETHE | Grayscale Ethereum Trust | 2.5% | $2.3B | -45.7% |
| ETH | Grayscale Ethereum Mini Trust | 0.15% | $854.7M | 45.4% |
| QETH | Invesco Galaxy Ethereum ETF | 0.25% | $14.1M | -45.3% |
Miners and Ethereum: Looking Forward
For the remainder of 2025, gold-mining ETFs could continue to outperform if economic uncertainty, inflation concerns and geopolitical risks persist. However, if interest rates stabilize or decline, gold prices may face resistance, and miners could see profit-taking after their strong rally.
Ethereum ETFs, which struggled during the first quarter, may rebound if sentiment around crypto improves, especially if institutional interest grows with staking approvals or regulatory clarity. A potential recovery in risk assets, combined with Ethereum’s fundamental upgrades, could provide a catalyst for ETH-related ETFs. However, continued weakness in crypto markets or regulatory setbacks could extend their underperformance.
