Exchange-traded funds (ETFs) are cost-effective investment tools that allow investors to track popular indexes or benefit from expert manager decisions. Unlike mutual funds, all ETFs are traded on exchanges throughout the day, making them more flexible. In 2025, top-performing ETFs included L&G Gold Mining AUCO and VanEck Junior Gold Miners GDXJ, with data sourced from Morningstar Direct.

When assessing ETFs, long-term returns are crucial, but short-term performance can reveal strategy biases. The best-performing ETFs in 2025 were screened from Morningstar’s equity, allocation, or fixed-income categories available in the UK, excluding those with assets below USD 25 million and funds designed for active traders.

Among the top-performing ETFs for 2025, eight were in the equity precious metals category, with an average gain of 144.52% for the year. L&G Gold Mining UCITS ETF was the best performer, with a 161.52% gain, outperforming the category’s average and ranking in the 11th percentile over the past three years.

VanEck Junior Gold Miners UCITS ETF was the second best-performing ETF in 2025, returning 155.31% and outperforming the average equity precious metals fund over three years. Global X Silver Miners UCITS ETF ranked third, with a 152.92% gain, but received a Negative Morningstar Medalist Rating for expected poor performance.

USSolactive Global Pure Gold Miners UCITS ETF ranked fourth with a 152.62% gain, surpassing the category average over three years. VanEck Gold Miners UCITS ETF was fifth with a 138.06% gain and performed in line with the category average. Market Access NYSE Arca Gold BUSIndex UCITS ETF ranked sixth with a 136.83% gain.

iShares Gold Producers UCITS ETF was the seventh best-performing ETF in 2025, returning 136.70%. Gold Miners Screened UCITS ETF ranked eighth, with a 135.24% gain. iShares EURO STOXX Banks 30-15 UCITS ETF was ninth, with a 101.24% gain. Amundi Euro Stoxx Banks UCITS ETF ranked tenth, returning 100.45%.

ETFs trade on stock exchanges like individual stocks and offer more flexibility than traditional mutual funds. While historically tracking indexes, some ETFs are now actively managed, covering various asset classes. Investors can explore the latest ETF articles and use Morningstar’s ETF screener to find suitable options based on specific criteria.

Read more at Morningstar: The Best ETFs of 2025 for UK Investors