High-Momentum ETFs Leading the Market This Year

Key Points

• Several ETFs have started 2025 with incredible momentum that, if it continues, will easily outpace the S&P 500's stellar year in 2024.
• Funds in this category to watch include BTGD, SURI, NUKZ, and PSIL.
• Each of these funds has returned at least roughly 14% year-to-date as of February 6, 2025, and some have even fared far better than that.

The S&P 500 experienced an impressive return of close to 25% in 2024, significantly outpacing its average annual growth rate over the last several decades, which is much closer to 10%. After another strong year for the broader market, investors may have entered 2025 with outsized hopes that this momentum will continue. Fortunately, though there is no guarantee the market will continue to rally going forward, there are a number of exchange-traded funds (ETFs) that have experienced massive upswings in the first weeks of the year. As of February 5, 2025, barely a month into the new year, each of the funds below has risen by at least about 14% (and sometimes quite a bit more) year-to-date, while the S&P 500 has climbed just over 3% in the same period.

STKD Bitcoin & Gold ETF: Dual Focus to Balance Risk

Launched in October 2024, the STKD Bitcoin & Gold ETF NYSEARCA: BTGD is the newest fund on our list. BTGD is an example of a so-called stacked ETF, a fund that focuses simultaneously on two assets with a common theme. The goal of BTGD is to provide double exposure to both Bitcoin and gold—the fund's provider suggests that each dollar invested is meant to provide a dollar of Bitcoin exposure and a dollar of gold exposure.

An interesting aspect of BTGD is it aims to achieve this dual focus without investing directly in either of the assets themselves. Thus, BTGD does not hold physical gold or bullion, nor does it invest directly in any digital assets. Rather, BTGD invests in futures and exchange-traded products in both gold and Bitcoin. Investors may be drawn to the counterbalance that each of these assets provides compared with the other; Bitcoin is highly volatile and remains in a murky regulatory space, while gold is a safe haven metal and a historical store of value.

Thanks to its active management, BTGD carries a reasonably high fee of 1.0%. However, investors who see that the fund has returned 13.6% year-to-date just over a month into 2025 may be willing to spend a bit extra for the fee.

Simplify Propel Opportunities ETF: High Fee for Unique Expertise

With an expense ratio of 2.54%, the Simplify Propel Opportunities ETF NYSEARCA: SURI comes at a steep price. This actively managed fund has enjoyed returns of 18.1% from the start of 2025 through February 6, though, perhaps making the high fee worthwhile.

SURI focuses on biotech, pharma, healthcare technology, and life science firms that are "overlooked by investors." The fund aims to use the expertise of sub-adviser Propel to identify promising healthcare sector firms that investors without deep knowledge of the area might not see.

The fund has a relatively narrow basket of 22 names as of the date above.

Range Nuclear Renaissance Index ETF: Capitalizing on Clean Energy Push

The Range Nuclear Renaissance Index ETF NYSEARCA: NUKZ targets companies involved in the advanced reactor, utilities, construction & services, and fuel segments of the nuclear energy industry.

With a substantial increase in demand for clean energy expected to continue into the future, nuclear sources are gaining popularity.

NUKZ has the lowest expense ratio of any on our list, at 0.85%, and a year-to-date return of more than 21% as of February 6. Investors should note that it is fairly concentrated in a few names—the top three positions account for about a third of all assets.

AdvisorShares Psychedelics ETF: Drug Potential for Mental Health

An unexpected top performer early in 2025 is the AdvisorShares Psychedelics ETF NYSEARCA: PSIL, which has returned a whopping 37.2% so far this year. The fund invests in biotech, pharmaceutical, and life sciences companies with significant revenue or other focus on the development of psychedelic drugs with potential applications in the mental healthcare industry.

PSIL is an actively managed fund but has a reasonable 0.99% expense ratio.

PSIL's unique focus means that it invests in some uncommon names in a niche portion of the biotech and pharma industries. This fund can thus offer investors exposure to companies that are not likely to show up in any other ETF portfolios. Based on returns so far this year, it appears that PSIL's strategy has paid off.