Best & Worst ETF Zones of Q1

The first quarter of 2025 has been marked by volatility in global stock markets, influenced by geopolitical tensions, trade policies and economic data. While some regions have demonstrated resilience and growth, others have faced notable declines. Here’s a snapshot.

A Dismal Quarter for U.S. Stocks

The U.S. stock market experienced significant losses marred by pessimism, with the Trump administration imposing tariffs on Canada, Mexico, China and other countries in preparation for a trade war. Concerns over a slowing economy also hurt investors’ sentiments.

International Stocks Shine

International stocks had the best start to a year so far this century. Inflationary pressure and concerns over the new administration’s tariffs shifted investors' interest toward international stocks. In fact, investors are growing more bullish on global equities, buoyed by solid European fundamentals and China’s recovery. Per the latest data, foreign investors have reduced their exposure to U.S. equities. In March alone, European investors withdrew a net $2.374 billion from U.S. equity ETFs, redirecting funds to markets in Europe, Asia-Pacific and emerging economies (read: 5 International ETFs Beating the S&P 500 in 2025).

Gold, Silver & Copper Reach New Heights

All three metals surged to record highs. Trade war worries and geopolitical tensions enhanced gold and silver's attractiveness among investors. Both bullions are often used as a means of preserving wealth during times of financial and political uncertainty and usually do well when other asset classes struggle. Meanwhile, copper surged, driven by the possibility of hefty import tariffs on the crucial industrial metal and on reports of halted shipments from top producer Chile.

Bitcoin, Ethereum to Post the Worst Quarter

Bitcoin and Ethereum are poised to suffer their worst first quarter in years. After reaching an all-time high of approximately $108,309 on Dec. 17, 2024, Bitcoin’s value declined substantially on speculation that the Fed may have limited scope for further interest rate cuts this year.  The delays in implementing supportive policies by President Donald Trump resulted in the decline in cryptocurrency. Ethereum has been mirroring Bitcoin's downward trend (read: Bitcoin May End Q1 in Red: What's Ahead for ETFs?).

We have highlighted three ETFs each from the best and worst-performing zones of the first quarter of 2025.

Best ETFs

iShares MSCI Poland ETF (EPOL) – Up 37.5%

iShares MSCI Poland ETF offers exposure to a broad range of companies in Poland by tracking the MSCI Poland IMI 25/50 Index. It holds 32 stocks in its basket and charges 60 bps in annual fees. iShares MSCI Poland ETF has accumulated $333.8 million in its asset base and trades in a volume of 444,000 shares a day on average.

Sprott Gold Miners ETF (SGDM) – Up 36.3%

Sprott Gold Miners ETF follows the Solactive Gold Miners Custom Factors Index, which aims to track the performance of larger-sized gold companies whose stocks are listed on Canadian and major U.S. exchanges. It holds 35 stocks in its basket. Here again, Canada takes the top spot at 79.2%, followed by 18.7% in the United States. Sprott Gold Miners ETF has amassed $326.9 million in its asset base and trades in a lower volume of around 44,000 shares a day. It charges 50 bps in annual fees from investors (read: Gold Mining ETF Tops in Q1: 5 Best-Performing Stocks). 

YieldMax BABA Option Income Strategy ETF (BABO) – Up 35.3%

YieldMax BABA Option Income Strategy ETF is an actively managed fund that seeks to generate monthly income by selling/writing call options on Alibaba (BABA). It pursues a strategy that aims to harvest compelling yields while retaining capped participation in the price gains of BABA. BABO seeks exposure to the share price of the common stock of Alibaba. YieldMax BABA Option Income Strategy ETF has AUM of $52.4 million and trades in a volume of 84,0000 shares. It charges 99 bps in annual fees.

Worst ETFs

ProShares Ether ETF (EETH) – Down 41.4%

ProShares Ether ETF is the first ETF that targets the performance of Ether, charging 5 bps in annual fees. It has amassed $45.7 million in its asset base and charges 95 bps in annual fees. EETF trades in an average daily volume of 88,000 shares.

CoinShares Valkyrie Bitcoin Miners ETF (WGMI) – Down 36.7%

CoinShares Valkyrie Bitcoin Miners ETF is an actively managed ETF that invests at least 80% of its net assets (plus borrowings for investment purposes) in securities of companies that derive at least 50% of their revenues or profits from bitcoin mining operations and/or from providing specialized chips, hardware and software or other services to companies engaged in bitcoin mining. CoinShares Valkyrie Bitcoin Miners ETF holds nine stocks in its basket, with a double-digit concentration on the top three firms. It has amassed $118.5 million in its asset base while trading in an average daily volume of 747,000 shares. WGMI charges 75 bps in annual fees (read: Tariff Relief Boosts Tech ETFs: Is More Upside Ahead?).

Roundhill Cannabis ETF (WEED) – Down 32.1%

Roundhill Cannabis ETF is designed to offer concentrated exposure to the largest U.S. cannabis companies. The fund may invest in various cannabis-related companies, including producers and distributors, cannabis-related technology companies and additional cannabis-related ancillary businesses. It offers precise exposure to five leading U.S. MSOs. Roundhill Cannabis ETF has gathered $3.7 million in its asset base. It currently has 0.00% in expense ratio and trades in 12,000 shares a day on average.

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This article originally published on Zacks Investment Research (zacks.com).

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