Top 10 ETFs Of 2016 To Date

One group of ETFs is leaps and bounds ahead of the others.

Senior ETF Analyst
Reviewed by: Sumit Roy
Edited by: Sumit Roy

With two months in the books, the outlook for financial markets in 2016 is no clearer than it was at the start of the year. The one-two punch of the oil crash and China's slowdown continues to weigh on risk assets, while buoying safe havens.

The SPDR S&P 500 (SPY | A-98) was down about 5.1% through Feb. 29 even after a muscular rally in the second half of that month. With a return like that, it's unsurprising that SPY isn't even close to the top of the pack for ETF returns so far this year.

Meanwhile, the iShares Core U.S. Aggregate Bond ETF (AGG | A-98)―which holds a basket of safe, high-quality bonds―gained 2.1% in the period.

While respectable, AGG's return also isn't enough to propel it into the top 10 nonleveraged/noninverse ETF returns for the year so far. In fact, it takes a minimum 25% return to make this list, and that's only half the return of 2016's top-performing ETF.

Gold Miners Dominate

Typically, the top10 ETF list features an eclectic mix of funds from various asset classes and sectors.

Not this time.

Each of the top performers this year is a gold or silver miners exchange-traded fund. Up until mid-January, the mining sector was one of the most-beaten-down areas of the market. But following a surprising and sharp 17% rally in the price of gold so far this year, the sector surged.

The iShares MSCI Global Gold Miners ETF (RING | B-99) took the top spot, with a 50.7% return. RING provides broad-based exposure to gold miners from around the world, and has the cheapest expense ratio in the segment—0.39%.

At the No. 2 position is the largest and most liquid of all miner ETFs, the Market Vectors Gold Miners ETF (GDX | C-80), which climbed 41.3% through Feb. 29. Many of the top holdings in GDX are the same as for RING, but the Market Vectors fund limits itself to firms traded in the U.S.

For a complete list of the gold and silver miner ETFs that made the list, see the table at the bottom of this article.

VIX & High-Duration Bonds Outperform

Outside of gold miners, there aren't many ETFs that have seen impressive gains this year. The VIX exchange-traded notes such as the VelocityShares VIX Short-Term ETN (VIIX | B-53) and the iPath S&P 500 VIX Short-Term Futures ETN (VXX | B-47) came the closest to edging into the top 10, with gains of just under 24%.

Given this year's volatile market and the rise in the CBOE Volatility Index, the strong returns in these products make sense.

Another pair of ETFs to do well so far in 2016 are zero-coupon, high-duration bond funds. These include the PIMCO 25+ Year Zero Coupon U.S Treasury ETF (ZROZ | C-57) and the Vanguard Extended Duration Treasury ETF (EDV | C-50), up 13.6% and 12.8%, respectively, for the year so far.

ZROZ and EDV hold the longest maturity bonds with no coupon payments, making these two funds extremely interest-rate sensitive. Thanks to this year's unexpected decline in U.S. interest rates, they've been big strong performers.

For international ETFs, the best performers of the year include the Market Vectors Indonesia ETF (IDX | B-90) and the iShares MSCI All Peru Capped ETF (EPU | C-40), up 9% and 8.6%, respectively.

Leverage/Inverse ETFs

Up until now, we've only mentioned nonleveraged/noninverse ETFs, but of course, there are dozens of exchange-traded products that do offer leverage and inverse exposure. These are typically designed for aggressive traders with short holding periods.

If timed right, the returns on these ETPs can be stellar. Since the start of the year, the top 10 products in this category include leveraged gold miner ETPs, inverse biotechnology ETPs and inverse natural gas ETPs.

The Direxion Daily S&P Biotech Bear 3X Shares ETF (LABD) led all gainers, with a 143.2% return. That was followed closely by the Direxion Daily Gold Miners Bull 3X ETF (NUGT), with a 139% gain, and the VelocityShares 3X Inverse Natural Gas ETN (DGAZ), with a 130.8% advance.

For a complete list of top-performing leveraged and inverse ETFs, see the table at the bottom of this article.

Top 10 ETPs (excluding leveraged/inverse)

TickerFundYTD Return (%)
RING iShares MSCI Global Gold Miners50.73
GDX Market Vectors Gold Miners41.25
PSAU PowerShares Global Gold and Precious Metals41.28
SGDJ Sprott Junior Gold Miners40.57
SGDM Sprott Gold Miners36.37
GDXJ Market Vectors Junior Gold Miners35.19
SILJ PureFunds ISE Junior Silver (Small Cap Miners/Explorers)33.73
SLVPiShares MSCI Global Silver Miners31.14
GLDX Global X Gold Explorers32.38
SIL Global X Silver Miners25.77

Top 10 Leveraged/Inverse ETPs

TickerFundYTD Return (%)
LABD Direxion Daily S&P Biotech Bear 3X Shares143.23
NUGT Direxion Daily Gold Miners Bull 3X139.04
DGAZ VelocityShares 3X Inverse Natural Gas ETN130.83
JNUG Direxion Daily Junior Gold Miners Bull 3X109.98
ZBIO ProShares UltraPro Short Nasdaq Biotechnology102.63
GDXX ProShares Ultra Gold Miners90.41
KOLD ProShares UltraShort Bloomberg Natural Gas75.48
BIS ProShares UltraShort Nasdaq Biotech64.68
GDJJ ProShares Ultra Junior Miners73.29
UGLD VelocityShares 3X Long Gold ETN56.72

Data through Feb. 29, 2016

Contact Sumit Roy at [email protected].

Sumit Roy is the senior ETF analyst for, where he has worked for 13 years. He creates a variety of content for the platform, including news articles, analysis pieces, videos and podcasts.

Before joining, Sumit was the managing editor and commodities analyst for Hard Assets Investor. In those roles, he was responsible for most of the operations of HAI, a website dedicated to education about commodities investing.

Though he still closely follows the commodities beat, Sumit covers a much broader assortment of topics for, with a particular focus on stock and bond exchange-traded funds.

He is the host of’s Talk ETFs, a popular video series that features weekly interviews with thought leaders in the ETF industry. Sumit is also co-host of Exchange Traded Fridays,’s weekly podcast series.

He lives in the San Francisco Bay Area, where he enjoys climbing the city’s steep hills, playing chess and snowboarding in Lake Tahoe.