Best and worst performing ETFs in Q1 2025
Tue April 01 2025
Gold mining ETFs held their spot as the top performers in Q1 as the spot price hit fresh highs, while defence ETFs continued to be boosted by the European geopolitical backdrop.
Gold mining ETFs have continued their ascent in Q1 as investors anticipate strong earnings driven by record-high gold prices, with the safe haven asset hitting an all time high on March 31 at $3127 an ounce.
Other factors including the low price of oil – a key input cost for mining gold – have contributed to reduced expenses and improved profits.
The L&G Gold Mining UCITS ETF (AUCP) has returned 38.1% in 2024, as at 31 March, the highest of any European-listed ETF. Meanwhile, the iShares Gold Producers UCITS ETF (SPGP), the VanEck Gold Miners UCITS ETF (GDGB) and the VanEck Junior Gold Miners UCITS ETF (GJGB) returned 30.6%, 30.3% and 29.5% respectively.
Defence in focus
Defence ETFs have found themselves in the spotlight as angst grew over US President Donald Trump cutting military support to the continent., resulting in spending pledges by leaders across Europe.
European Commission President Ursula von der Leyen pledged €800bn to a four-year ‘rearmament plan,’ while German Chancellor Friedrich Merz proposed a $200bn military budget boost and Denmark announced $5.5bn in new defence spending.
While this backdrop meant investors have poured into WisdomTree’s European defence ETF, the VanEck Defense UCITS ETF – which recently hit $4bn assets under management (AUM) – has returned 18.7% so far this year. Even more impressive, the younger Global X Defence Tech UCITS ETF soared 21.4% year to date.
European banks
Finally, European bank ETFs ranked among Q1’s top performers, driven by supportive fiscal and monetary policies and a shift away from the US amid tariff-related uncertainty. Leading the charge, the Amundi Euro Stoxx Banks UCITS ETF (BNKE) returned 32% so far this year.
Following closely behind, the Invesco EURO STOXX Optimised Banks UCITS ETF (S7XP) and the Invesco European Banks Sector UCITS ETF (X7PP) returned 31.9% and 27.8%, respectively.
Crypto crashes
While blockchain ETFs were supported by the approval of US spot bitcoin approvals at the start of 2024 and a saw a boost following President Trump’s reelection, they ended up as the worst-performing ETFs of Q1 this year.
Bitcoin - the best indicator of the overall crypto market performance – has fallen 10.1% this year after peaking at $103,332 in December last year.
The VanEck Crypto and Blockchain Innovators UCITS ETF (DAPP) fell 37.1% during the first three months of the year, marking a stark contrast to the same ETF returning 58.2% across 2024 and 283.3% in 2023.
Meanwhile, the Global X Blockchain UCITS ETF (BKCG) fell 35.8%, while the iShares Blockchain Technology UCITS ETF dipped 28%.
Source: https://www.etfstream.com/