Best ETFs to Watch in March 2025

ETFs can help investors diversify their portfolio through a single investment product

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 March 2025.
• These funds include CQQQ, ZROZ, ELD, UNG, FXY

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 Feb. 25, 2025.

Equity ETF with the Best 1-Month Return: Invesco China Technology ETF (CQQQ)

• One-month performance: 26%
• Expense Ratio: 0.65%
• Annual Dividend Yield: 0.23%
• 30-Day Average Daily Volume: 674,130
• Assets Under Management (AUM): $975 million
• Inception Date: Dec. 8, 2009
• Issuer: Invesco

The Invesco China Technology ETF (CQQQ) tracks the FTSE China Incl A 25% Technology Capped Index, investing at least 90% of its assets in Chinese technology stocks. The ETF provides exposure to China’s tech sector and is rebalanced quarterly. As of Feb. 24, its biggest holdings were in shares of Tencent Holdings Ltd, PDD Holdings Inc ADR (PDD), and Meituan.

Bond ETF with the Best 1-Month Return: PIMCO 25+ Year Zero Coupon US Treasury Index Exchange-Traded Fund (ZROZ)

• One-month performance: 4.6%    
• Expense Ratio: 0.15%
• Annual Dividend Yield: 4.54%
• 30-Day Average Daily Volume: 342,904
• Assets Under Management (AUM): $1.54 billion
• Inception Date: Oct. 30, 2009
• Issuer: Allianz Investment Management LLC

This fund seeks to closely track the total return of the BofA Merrill Lynch Long Treasury Principal STRIPS Index before fees and expenses. It provides exposure to long-term U.S. Treasuries, offering yield and duration benefits while potentially reducing trading costs.

Fixed Income ETF with the Best 1-Month Return: WisdomTree Emerging Markets Local Debt Fund (ELD)

• One-month performance: 3.9%
• Expense Ratio: 0.55%
• Annual Dividend Yield: 5.5%
• 1 Month Avg. Volume: 8,317
• Assets Under Management (AUM): $63.6 million
• Inception Date: Aug. 9, 2010
• Issuer: WisdomTree, Inc.

The WisdomTree Emerging Markets Local Debt Fund (ELD) aims to generate high total returns through income and capital appreciation by investing in locally denominated debt from emerging market countries. The ETF’s constituent countries include Brazil, Chile, Colombia, Mexico, Peru, Poland, Romania, Russia, South Africa, Turkey, China, Indonesia, Malaysia, South Korea, and Thailand.

Commodities ETF with the best 1-Month Return: United States Natural Gas Fund LP (UNG)

• One-month performance: 20.5%
• Expense Ratio: 1.06%
• Annual Dividend Yield: N/A
• 30-Day Average Daily Volume: 8,098,913
• AUM: $776.7 million
• Inception Date: April 18, 2007
• Issuer: Marygold

The United States Natural Gas Fund (UNG) is an ETF designed to closely track the daily price movements of natural gas using its Benchmark Futures Contract, primarily the near-month natural gas futures trading on the NYMEX. UNG had a strong one-month performance, as natural gas prices have continued to rally in the face of colder-than-anticipated temperatures across the U.S. and
electricity generation demand from AI.

Currency ETF with the Best 1-Month Return: Invesco Currency Shares Japanese Yen Trust (FXY)

• One-month performance: 4.67% 
• Expense Ratio: 0.4% 
• Annual Dividend Yield: N/A
• 30-Day Average Daily Volume: 204,370 
• AUM: $441 million 
• Inception Date: Feb. 12, 2007
• Issuer: Invesco

The Invesco Currency Shares Japanese Yen Trust (FXY) is an ETF designed to track the price of the Japanese yen through physical yen holdings. The yen serves as Japan’s national currency and is managed by the Bank of Japan, the country’s central bank. The Yen has been rallying recently based on speculation that the Bank of Japan could raise interest rates twice more this year if inflation continues to be elevated.

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.

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As of the date this article was written, the author does not own any of the above ETFs.