Top 5 Performing ETFs in 2025: Gold Miners, Silver, and Defense ETFs Analyzed

Introduction

As we wrap up August 2025, the ETF landscape has been nothing short of electrifying. I've been tracking markets for years, and this year's surge in precious metals and defense sectors feels like a perfect storm of geopolitical tensions, inflation hedges, and economic shifts. While broad-market funds like the S&P 500 ETFs chug along steadily, the real stars have been niche players capitalizing on gold's rally to all-time highs and Europe's defense spending boom. In this deep-dive blog post, we'll explore five top-performing ETFs of 2025 so far, each delivering over 70% year-to-date returns. Drawing from my experience navigating bull and bear markets, I'll provide background, technical breakdowns, expert opinions, real-world examples, and actionable takeaways. Whether you're a seasoned investor or just dipping your toes, these insights aim to equip you with strategies to potentially boost your portfolio—remember, past performance isn't a guarantee, but understanding the drivers is key to smart decisions.

Why These ETFs? A Quick Market Context

The Rise of Thematic ETFs in 2025

ETFs have exploded in popularity, with over $10 trillion in global assets under management by mid-2025, thanks to their low costs, liquidity, and diversification. This year, amid lingering inflation (U.S. CPI at 3.2% in July) and global uncertainties like the ongoing Ukraine conflict and Middle East tensions, investors have flocked to safe-haven assets and defensive plays. Gold prices have soared past $2,800 per ounce, up 35% YTD, while silver has climbed 45%. Defense budgets in Europe hit record levels, with NATO allies committing over 2% of GDP. These trends have propelled specialized ETFs to outperform broad indices like the S&P 500 (up 18% YTD). Experts like those at Morningstar note that thematic ETFs now capture 15% of inflows, up from 10% in 2024, as investors seek targeted exposure without picking individual stocks.

Selection Criteria for Our Top 5

I chose these based on year-to-date performance as of August 2025, focusing on non-leveraged funds with at least $100 million in AUM for liquidity and stability. Data from ETF.com and Morningstar highlights gold/silver miners and defense as dominant themes. We'll analyze each for holdings, risks, and potential, incorporating insights from analysts like those at etf.com who predict continued strength if commodity prices hold.

Sprott Gold Miners ETF (SGDM): Leading the Pack with 79% Gains

Background and Core Strategy

Launched in 2014 by Sprott Asset Management, SGDM tracks the Solactive Gold Miners Custom Factors Index, focusing on 30-40 mid- to large-cap gold mining companies. With $450 million in AUM and a 0.50% expense ratio, it's designed for investors betting on operational leverage—miners profit exponentially as gold prices rise due to fixed costs. In 2025, SGDM's performance has inverted the typical underperformance of miners versus physical gold, thanks to improved balance sheets and margins amid gold's bull run.

Deep Analysis: Holdings and Performance Drivers

Top holdings include Newmont Corp. (NEM, 15%), Barrick Gold (GOLD, 12%), and Agnico Eagle Mines (AEM, 10%), with heavy exposure to Canada (60%) and Australia (20%). The ETF weights stocks by factors like revenue growth and low debt, avoiding pure explorers for stability. YTD, shares have surged 79%, outpacing the SPDR Gold Shares (GLD) ETF's 35% gain. Experts at etf.com attribute this to miners' 20-30% margin expansion as gold topped $2,800— for example, Newmont's Q2 earnings beat estimates by 15% on higher output and prices.

Risks and Expert Insights

Volatility is a key risk; miners are sensitive to energy costs and labor strikes. Morningstar's Ruth Saldanha warns of "capital allocation pitfalls" from past cycles, where miners overinvested during booms. However, Sprott's CEO John Ciampaglia highlights in a 2025 interview that post-2020 discipline has led to record free cash flow, positioning SGDM for sustained outperformance if inflation persists.

Pros: High beta to gold (1.5x), dividends from holdings (average yield 1.2%), global diversification.

Cons: Geopolitical risks in mining regions, potential gold price pullback if Fed cuts rates aggressively.

Practical Takeaways

For a $10,000 investment, allocate 5-10% to SGDM in a diversified portfolio. Use dollar-cost averaging during dips below $50/share. Track gold futures for entry points—buy when prices stabilize above $2,700.

iShares MSCI Global Gold Miners ETF (RING): 77% Returns on Broad Exposure

Background and Core Strategy

Managed by BlackRock since 2012, RING follows the MSCI ACWI Select Gold Miners Investable Market Index, holding 35-40 companies with $1.2 billion AUM and a low 0.39% expense ratio. It emphasizes large-cap miners (market cap >$5B), making it less volatile than junior-focused peers.

Deep Analysis: Holdings and Performance Drivers

Key positions: Newmont (20%), Barrick (18%), Wheaton Precious Metals (WPM, 7%)—a streamer providing financing to miners for royalties. With 50% Canadian exposure, RING benefited from a weak CAD boosting exports. In 2025, it returned 77%, driven by gold's safe-haven status amid U.S. election volatility. An example: Wheaton's shares jumped 40% post-Q1 on record royalties from rising prices.

Risks and Expert Insights

Currency fluctuations and environmental regulations pose threats. US News analysts predict 10-15% more upside if gold hits $3,000, but caution against overexposure. BlackRock's Russ Koesterich notes in a July 2025 report that RING's low correlation (0.3) to equities makes it an ideal hedge.

Pros: Low cost, high liquidity (average volume 200K shares/day), ESG screens excluding controversial miners.

Cons: Concentrated top holdings (top 3 = 45%), sensitive to production disruptions.

Practical Takeaways

Pair RING with a bond ETF for balance. Monitor MSCI rebalances quarterly; reallocate if gold sentiment shifts via tools like TradingView RSI (buy below 40).

iShares MSCI Global Silver and Metals Miners ETF (SLVP): Silver's 77% Surge

Background and Core Strategy

Also from BlackRock (launched 2012), SLVP tracks the MSCI ACWI Select Silver Miners Investable Market Index with $270 million AUM and 0.39% expense. It targets silver-focused firms, capitalizing on industrial demand (solar panels, EVs) alongside monetary appeal.

Deep Analysis: Holdings and Performance Drivers

Top: Pan American Silver (PAAS, 20%), Industrias Peñoles (10%), Wheaton (8%)—Mexico and Canada dominate (60%). Silver's dual role drove 77% YTD gains; industrial use rose 15% per Silver Institute data. Example: PAAS's output increased 10% in H1 2025, lifting shares 50%.

Risks and Expert Insights

Higher volatility than gold (beta 1.8). Morningstar's August 2025 review praises SLVP's niche but warns of supply gluts. Analyst Jeff Clark from Paydirt Pros forecasts silver to $50/oz by year-end, boosting miners 2x.

Pros: Industrial tailwinds, lower entry price than gold ETFs, 1.5% yield.

Cons: Competition from copper miners, potential EV slowdown.

Practical Takeaways

Use SLVP for 3-5% allocation in growth portfolios. Watch silver-to-gold ratio (buy when >80:1); set stop-losses at 10% below entry.

Select Stoxx Europe Aerospace & Defense ETF (EUAD): 73% on Geopolitical Tensions

Background and Core Strategy

Invesco's EUAD, launched 2023, tracks the STOXX Europe Total Market Aerospace & Defense Index with $1.1 billion AUM (0.35% expense). It focuses on 20-25 European firms amid NATO's defense push.

Deep Analysis: Holdings and Performance Drivers

Leaders: Airbus (AIR, 25%), BAE Systems (BA, 20%), Safran (SAF, 15%). Europe's $500B defense spend in 2025 fueled 73% returns. Example: BAE's Q2 contracts surged 30% on Ukraine aid.

Risks and Expert Insights

Trade wars and budget cuts loom. etf.com's Sumit Roy sees 20% more growth if tensions escalate, citing $933M inflows.

Pros: Dividend yield 2.1%, sector resilience.

Cons: Eurozone economic drags, high valuations (P/E 25).

Practical Takeaways

Diversify with U.S. defense ETFs. Enter on pullbacks below €50; use geopolitical news for timing.

Global X Silver Miners ETF (SIL): 72% with Global Reach

Background and Core Strategy

Global X's SIL (2010) tracks the Solactive Global Silver Miners Total Return Index, $1.5 billion AUM, 0.65% expense, holding 40 firms.

Deep Analysis: Holdings and Performance Drivers

Top: Wheaton (15%), Pan American (12%), Korea Zinc (8%)—diverse geography (Canada 40%, U.S. 20%). 72% YTD on silver's rally; inflows $552M reflect demand.

Risks and Expert Insights

Operational risks high. US News highlights SIL's agility in volatile markets.

Pros: Broad exposure, liquidity.

Cons: Higher fees, emerging market risks.

Practical Takeaways

Allocate 5% for commodity plays. Track silver inventories; rebalance annually.

Conclusion

2025's top ETFs underscore the power of themes like precious metals and defense in uncertain times. From SGDM's gold leverage to EUAD's geopolitical edge, these funds offer real opportunities—but diversify and stay vigilant. As an investor who's ridden similar waves, I recommend starting small, using tools like Vanguard's allocator, and consulting advisors. With potential Fed cuts ahead, these could extend gains, but always align with your risk tolerance for long-term success.