Best-Performing Sector ETFs of the Second Quarter
The second quarter of 2025 saw sharp volatility in the U.S. stock market, driven by Trump's aggressive tariff policies and escalating geopolitical tensions. The S&P 500 is now less than 1% away from an all-time high, a stunning turnaround considering the index was teetering on the edge of a bear market just two months ago.
With just a few days left to end the second quarter, the Nasdaq Composite Index outperformed, jumping 15.4%, while the S&P 500 and the Dow Jones Index gained 8.5% and 2.3%, respectively.
We have highlighted five top-performing ETFs from different industries that were the leaders in the second quarter. These are Global X Uranium ETF URA, First Trust SkyBridge Crypto Industry & Digital Economy ETF CRPT, ARK Next Generation Internet ETF ARKW, Global X Video Games & Esports ETF HERO and Global X Gold Explorers ETF GOEX.
From Correction to Comeback
After nearly entering a bear market in April and erasing $9.8 trillion in market value, the S&P 500 rebounded sharply in May and June, fueled by a strong comeback in tech stocks and trade negotiation optimism. The S&P 500 jumped 6.15% in May, its best monthly gain since November 2023 and its strongest May since 1990. It has added another 3% so far in June, regaining trillions in market value.
Tech and AI Lead the Charge
Renewed enthusiasm for U.S. tech and AI stocks, especially NVIDIA NVDA and Microsoft MSFT, bolstered investors' sentiment during the quarter. The Nasdaq 100 hit a fresh record high on Tuesday, its first since February. With rates still high and volatility lingering, the mega-cap tech names are proving to be the market's new safe haven (read: 5 Stocks Driving Nasdaq 100 ETF Higher in 2025).
Trade Policies & Geopolitics
Trump has softened his stance on tariffs and taken a measured approach to trade negotiations. While only a trade deal with the UK and a tentative truce with China have been announced, many investors believe the worst of the tariff fallout may be behind them.
The average tariff rates are now at their highest in 90 years. Such elevated levels could suppress growth, reignite inflation, and keep interest rates elevated, thereby creating headwinds for stocks in the short term.
Hopes of de-escalation in the Israel-Iran conflict boosted market sentiment this week, easing risk-off pressures.
Let's dig into the details of the abovementioned ETFs:
Global X Uranium ETF (URA) – Up 55.5%
Global X Uranium ETF provides investors access to a broad range of companies involved in uranium mining and the production of nuclear components, including those in extraction, refining, exploration, or manufacturing of equipment for the uranium and nuclear industries. It tracks the Solactive Global Uranium & Nuclear Components Total Return Index and holds 48 stocks in its basket. Canadian firms make up the largest allocation in the basket at 38.2% while the United States accounts for a 20.8% share. Global X Uranium ETF has amassed $3.7 billion in its asset base and charges 69 bps in annual fees. It trades in an average daily volume of 5 million shares (read: Data Centers to Power Nuclear Energy and Uranium ETFs).
First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT) – Up 52.1%
First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economy-related innovation. SkyBridge identifies securities primarily via 'bottom-up' research focused on finding companies leading in the crypto industry ecosystem. First Trust SkyBridge Crypto Industry & Digital Economy ETF holds 24 stocks in its basket and charges 85 bps in fees per year from investors. It has amassed $127.8 million in its asset base and trades in an average daily volume of 63,000 shares.
ARK Next Generation Internet ETF (ARKW) – Up 38.5%
ARK Next Generation Internet ETF is an actively managed fund focusing on companies expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 42 stocks in its basket. ARK Next Generation Internet ETF has amassed $2 billion in its asset base and charges 82 bps in annual fees. It trades in an average daily volume of 346,000 shares.
Global X Video Games & Esports ETF (HERO) – Up 22.9%
Global X Video Games & Esports ETF offers exposure to companies developing or publishing video games, facilitating streaming and distribution of video gaming or esports content, owning and operating within competitive esports leagues or producing hardware used in video games and esports, including augmented and virtual reality. This can be easily done by the Solactive Video Games & Esports Index. Holding 45 securities in its basket, Global X Video Games & Esports ETF has an AUM of $159 million and charges 50 bps as annual fees. HERO trades in an average daily volume of 48,000 shares.
Global X Gold Explorers ETF (GOEX) – Up 22%
Global X Gold Explorers ETF provides exposure to companies involved in the exploration of gold deposits and tracks the Solactive Global Gold Explorers & Developers Total Return Index. It is home to 51 stocks. Canadian firms dominate the fund's return at 54.1%, followed by Australia (27.6%) and the United States (8.8%). Global X Gold Explorers ETF is unpopular and illiquid, with an AUM of $64.1 million and an average daily volume of 18,000 shares. The expense ratio comes in at 0.65% (read: Gold ETFs Shine in 1H: Will the Bloom Continue in 2H?).
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Microsoft Corporation (MSFT): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Global X Video Games & Esports ETF (HERO): ETF Research Reports
ARK Next Generation Internet ETF (ARKW): ETF Research Reports
Global X Gold Explorers ETF (GOEX): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
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