As we reach mid-2025, many investors — both professional and retail — are actively seeking the top-performing ETFs for June 2025 to enhance portfolio returns and manage risk effectively. With macroeconomic uncertainties, sector rotations, and shifting monetary policy driving markets, choosing the right exchange-traded fund (ETF) can make a significant difference in performance. In this in-depth guide, we explore the top US & European ETFs based on their performance over the past six months, diving into their investment strategies, yield, risk profiles, and most importantly, why they are performing so well.
What Are ETFs and Why Are They a Smart Investment in 2025?
For the uninitiated, an ETF (Exchange-Traded Fund) is a type of investment fund traded on stock exchanges, much like individual shares. ETFs hold a basket of assets — such as stocks, bonds, commodities — and are designed to track the performance of an index or sector.
Why ETFs are Popular Among Retail and Professional Investors
- Diversification: Exposure to many assets in one purchase.
- Liquidity: Can be bought and sold throughout the trading day.
- Cost-effective: Usually lower fees than mutual funds.
- Transparency: Most ETFs disclose their holdings daily.
In 2025, ETFs remain a crucial tool for accessing niche markets, managing risk, and participating in sectoral themes like gold mining, defence stocks, and real estate.
Best US & European ETFs to Buy in June 2025 (Top Performers Over the Past 6 Months)
VanEck Gold Miners ETF (GDX)
- Yield: ~1.5% annually
- 2025 Performance to Date: +38.2%
- Investment Focus: Global gold mining companies
- Risk Level: High
GDX provides targeted exposure to large-cap gold mining firms like Newmont Corporation and Barrick Gold. In a time of elevated inflation and heightened geopolitical risk, gold has proven to be a reliable safe-haven asset.
Why GDX is Performing Well in 2025
As central banks adopt a more dovish stance and inflation expectations remain sticky, investors have turned to gold. The rising spot price of gold — currently trading around $2,350/oz — has driven earnings and margins for miners, boosting ETF returns.
iShares MSCI Poland ETF (EPOL)
- Yield: ~2.0% annually
- 2025 Performance to Date: +47%
- Investment Focus: Polish equities
- Risk Level: Moderate to High
This ETF offers access to Poland’s growing market across sectors such as finance, energy, and tech. With a strengthening Polish zloty and reforms boosting foreign investment, Poland has emerged as a surprise outperformer in Europe.
Why EPOL is Outperforming
Strong GDP growth (forecasted 4.2% for 2025), increased government spending, and robust corporate earnings have propelled Polish equities. Poland’s strategic location within the EU and its growing tech industry have also attracted global capital flows.
iShares MSCI Spain ETF (EWP)
- Yield: ~3.0% annually
- 2025 Performance to Date: +32%
- Investment Focus: Spanish equities
- Risk Level: Moderate
This ETF tracks Spanish companies in sectors like banking, telecom, and industrials. As Spain’s economy recovers from previous stagnation, investor confidence is returning.
Why EWP is Outperforming in 2025
The Spanish stock market has benefited from strong tourism, falling unemployment, and rising consumer confidence. The Spanish IBEX 35 index has gained over 18% YTD, and this ETF has outpaced that due to sectoral tilts toward outperforming names.
Top European ETFs to Watch in June 2025 (Based on Last 6 Months’ Returns)
Amundi EURO STOXX Banks UCITS ETF
- Yield: ~3.5% annually
- 2025 Performance to Date: +16%
- Investment Focus: Eurozone banking sector
- Risk Level: Moderate
This ETF focuses on Eurozone banks, benefiting from improved net interest margins as interest rates remain elevated. Key holdings include BNP Paribas, Santander, and ING.
Why This ETF is Doing Well
Banks are profiting from the spread between what they pay depositors and earn on loans. With ECB keeping rates relatively stable, bank stocks have seen increased investor inflows.
VanEck Defense ETF (DFNS)
- Yield: ~1.2% annually
- 2025 Performance to Date: +55.97%
- Investment Focus: Global defence and aerospace
- Risk Level: High
DFNS captures companies involved in aerospace, military contracts, and cybersecurity, like Lockheed Martin and BAE Systems.
What’s Driving DFNS Higher?
Defence budgets globally have expanded significantly amid rising global tensions and military modernisation. In May 2025 alone, NATO nations agreed to increase defence funding by 7%, boosting outlooks for major contractors.
iShares European Property Yield UCITS ETF (IPRP)
- Yield: ~4.0% annually
- 2025 Performance to Date: +10.98%
- Investment Focus: European real estate
- Risk Level: Moderate
IPRP includes commercial and residential property companies across Europe. After a rocky 2022–2023 period, European REITs have staged a recovery.
Why Real Estate is Attractive in 2025
Low-interest rates and high rental demand, especially in capital cities, have supported property prices and REIT valuations. Investors are again seeking yield through tangible assets.
Final Thoughts: Which ETF Should You Choose in June 2025?
For professional investors, ETFs like DFNS and GDX offer high-beta exposure to strong macro themes. Meanwhile, retail investors may find the stable yield and diversification of IPRP or EWP more appealing.
Regardless of your background, understanding the investment focus, historical performance, risk profile, and market context of these ETFs is key to making informed choices.
Tip: Use ETF screeners with filters like 6-month performance, expense ratio, and sector focus to find tailored opportunities.
Frequently Asked Questions (FAQs)
What Is the Best ETF to Buy in June 2025?
As of now, VanEck Defense ETF (DFNS) stands out with over 55% YTD return, driven by global defence spending.
Which ETF Has the Highest Yield in Europe?
The iShares European Property Yield ETF (IPRP) currently yields ~4.0% annually.
Are ETFs Safe in 2025?
ETFs offer diversification, but risks remain depending on sector and region. Always assess your risk appetite.
How Do I Start Investing in ETFs?
You can invest through brokerage accounts like Vanguard, Fidelity, or online platforms like eToro and Interactive Brokers.