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Exchange-traded funds (ETFs) are investment funds that trade on stock exchanges, similar to individual stocks, and typically track an index, sector, commodity, or asset class. They offer investors diversification, as a single ETF can hold a broad mix of securities, reducing risk compared to investing in individual stocks. ETFs also tend to have lower expense ratios than actively managed mutual funds and provide liquidity, allowing investors to buy and sell shares throughout the trading day at market prices.
Key Takeaways
- Leading ETFs offer investors an opportunity to broadly diversify their holdings through a single investment with a low expense ratio and/or higher returns compared to competitors.
- We screened for the equity, bond, fixed income, commodities, and currency ETFs providing the highest one-month total returns for June 2025.
- These funds include DAPP, EBND, CWB, PPLT, and FXA
Below, we outline the top equity, bond, fixed income, commodities, and currency ETFs that generated the highest returns over the last month. We have excluded leveraged and inverse ETFs, as well as funds with less than $50 million in assets under management (AUM).
All data are current as of May 27, 2025.
- One-month performance: 37.3%
- Expense Ratio: 0.51%
- Annual Dividend Yield: 4.32%
- 1-Month Average Daily Volume: 592,265
- Assets Under Management (AUM): $182.4 million
- Inception Date: April 12, 2021
- Issuer: VanEck
The VanEck Digital Transformation ETF aims to closely track the MVIS Global Digital Assets Equity Index, which includes companies involved in the digital assets economy. The fund offers diversified exposure to digital asset exchanges, crypto miners, and infrastructure firms, with a focus on those
potentially generating at least 50% of their revenue from digital assets. As of May 26, the fund’s biggest holdings include Metaplanet Inc., Microstrategy (MSTR), and Coinbase Global (COIN).
- One-month performance: 2.6%
- Expense Ratio: 0.30%
- Annual Dividend Yield: 5.48%
- 1-Month Average Daily Volume: 315,439
- Assets Under Management (AUM): $1.89 billion
- Inception Date: Feb. 23, 2011
- Issuer: State Street
EBND seeks to track the Bloomberg EM Local Currency Government Diversified Index, which includes fixed-rate sovereign bonds issued in local currencies by both investment-grade and non-investment-grade emerging market countries. The ETF offers investors the potential for higher yields compared to developed market bonds, reflecting the increased credit and currency risk.
- One-month performance: 6.2%
- Expense Ratio: 0.40%
- Annual Dividend Yield: 1.92%
- 1-Month Average Daily Volume: 536,013
- Assets Under Management (AUM): $3.8 billion
- Inception Date: April 14, 2009
- Issuer: State Street
CWB offers exposure to U.S. convertible securities, which are bonds and preferred shares that can be exchanged into common stock, providing a blend of fixed-income and equity-like upside. Investors may consider this ETF for its potential to capture equity market gains with downside protection typical of bonds.
- One-month performance: 14.3%
- Expense Ratio: 0.60%
- Annual Dividend Yield: N/A
- 1-Month Average Daily Volume: 216,174
- Assets Under Management (AUM): $1 billion
- Inception Date: Jan. 8, 2010
- Issuer: Abrdn Plc
PPLT provides exposure to the price of physical platinum by holding allocated platinum bars stored in secure London vaults. Investors may consider this ETF to diversify their portfolios with a hard asset that has low correlation to equities and is used in applications such as automotive catalytic converters, electronics, and jewelry.
- One-month performance: 9.17%
- Expense Ratio: 0.40%
- Annual Dividend Yield: N/A
- 1-Month Average Daily Volume: 236,748 shares
- AUM: $482.2 million
- Inception Date: June 21, 2006
- Issuer: Invesco
FXA is designed to track the price of the Australian dollar, providing investors with direct exposure to currency movements without the need to trade forex. It also offers indirect exposure to the Australian economy, which is closely linked to global commodity markets.
How We Chose the Best ETFs
We selected the best ETFs across five areas of focus—equities, bonds, fixed-income, commodities, and currencies—utilizing a screener by VettaFi. In each case, we sorted ETFs according to the specified category and ranked them by highest one-month returns. We then filtered out any ETFs that employ a leveraged or inverse strategy, as well as any with less than $50 million in assets under management. Finally, for currencies ETFs, we excluded any funds focused on cryptocurrencies from our screen.
How to Invest in ETFs
To invest in ETFs, start by researching and selecting an ETF that aligns with your financial goals, risk tolerance, and investment strategy—whether it tracks a broad market index, a specific sector, or a commodity. Open a brokerage account with a platform that offers ETF trading, then place an order
just like you would for a stock. Consider factors such as expense ratios, liquidity, and tracking accuracy to ensure you’re getting the best value for your money. Depending on your time horizon and risk tolerance, ETFs typically require minimal maintenance and are often considered long-term, buy-and-hold investments.
The Bottom Line
ETFs are versatile and cost-effective investment options that provide diversification, liquidity, and tax efficiency, making them ideal for both new and experienced investors. With minimal maintenance required, they offer a simple way to gain exposure to broad markets or specific sectors while managing risk.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above ETFs.
