The Best- and Worst-Performing ETFs of Q1 2025

By Steven Orlowski, CFP, CNPR
April 5, 2025

As the dust settles on the first quarter of 2025, the ETF market has once again demonstrated the power of thematic investing, the impact of geopolitical shifts, and the lingering influence of central bank policy. From AI-driven surges to commodity collapses, Q1 offered a revealing snapshot of how investors are positioning themselves in a dynamic economic landscape.

Here’s a look at the best- and worst-performing ETFs of the first quarter of 2025, based on total return data through March 31.

🏆 Top 5 Best-Performing ETFs – Q1 2025

1. Roundhill Generative AI & Technology ETF (CHAT)

Q1 Return: +38.4%
Riding the wave of artificial intelligence innovation, CHAT led the pack thanks to strong gains in AI infrastructure firms and next-gen chipmakers. Nvidia, AMD, and newly public AI startups fueled the rally amid surging enterprise demand and government contracts.

2. Global X Uranium ETF (URA)

Q1 Return: +29.7%
The ongoing energy crisis in Europe and Asia reignited interest in nuclear energy. Uranium prices soared to multi-year highs, with producers like Cameco and Kazatomprom benefiting from long-term demand projections.

3. SPDR S&P Kensho Clean Power ETF (CNRG)

Q1 Return: +25.1%
A renewed global push toward green energy, spurred by aggressive policy initiatives in the EU and China, sparked a rebound in clean tech stocks. Battery storage, hydrogen, and solar companies saw heavy inflows.

4. iShares MSCI India ETF (INDA)

Q1 Return: +21.6%
India’s robust GDP growth, favorable demographics, and foreign direct investment inflows powered equities higher. Investors continue to view India as a top long-term EM play amid China’s relative stagnation.

5. Defiance Quantum ETF (QTUM)

Q1 Return: +19.8%
Quantum computing saw a hype-driven mini rally as companies announced breakthroughs in error correction and quantum advantage, luring speculative capital despite unproven revenue models.

💀 Top 5 Worst-Performing ETFs – Q1 2025

1. United States Natural Gas Fund (UNG)

Q1 Return: –33.2%
A warm winter in North America and Europe, coupled with oversupply concerns, crushed natural gas prices. Speculators who bet on a cold snap were left in the cold themselves.

2. ARK Space Exploration & Innovation ETF (ARKX)

Q1 Return: –27.9%
Investor fatigue over speculative tech hit space exploration especially hard. Slower-than-expected adoption of satellite technologies and delayed commercial launches weighed on performance.

3. KraneShares CSI China Internet ETF (KWEB)

Q1 Return: –21.4%
China’s internet sector remains under pressure due to regulatory uncertainty, sluggish consumer spending, and ongoing tensions with Western governments. Alibaba and Tencent both saw double-digit declines.

4. SPDR S&P Regional Banking ETF (KRE)

Q1 Return: –19.6%
Regional banks continued to feel the sting of deposit outflows and margin pressure amid persistent uncertainty around interest rate cuts and the broader real estate downturn.

5. VanEck Gold Miners ETF (GDX)

Q1 Return: –17.2%
Despite geopolitical risk and sticky inflation, gold miners struggled due to rising production costs and flat gold prices. Investors preferred physical gold or lower-cost ETFs over mining stocks.

🔍 Key Takeaways

Tech is back—again. AI and quantum computing remain investor darlings, but valuations are beginning to stretch.
Commodities are a mixed bag. Uranium surged while natural gas plunged. Energy investors need to stay nimble.
Emerging markets are diverging. India thrives as China lags.
Speculative themes still face growing pains. Space, crypto, and frontier tech ETFs suffered as risk appetite cooled mid-quarter.
Rate policy remains a headwind. Financials and real estate-sensitive sectors underperformed as the Fed remained hawkish longer than anticipated.

🧭 Looking Ahead

As Q2 begins, investors are keeping an eye on the Federal Reserve’s next moves, corporate earnings season, and ongoing geopolitical flashpoints in the Middle East and Taiwan Strait. Thematic ETFs may continue to see wide performance dispersion, making selectivity and timing more important than ever.

Whether chasing alpha or managing risk, Q1 offered a vivid reminder that ETF performance can be as volatile—and as opportunistic—as the markets they track.

Disclosure: This article is for informational purposes only and does not constitute investment advice. Always consult a financial advisor before making investment decisions.

Steven Orlowski's "Expertise for Everyone"

Saturday, April 5, 2025