Exchange-traded funds, or ETFs, are often low-cost instruments for investors to track popular indexes or leverage experienced manager choices in an attempt to beat the market. The best ones serve as building blocks for a portfolio, and unlike open-end funds, all ETFs are traded throughout the day on an exchange.
In May 2024, the top-performing ETFs included equity alternative energy fund Invesco Solar Energy UCITS ETF (ISUN) and equity technology fund VanEck Crypto & Blockchain Innovators UCITS ETF (DAPP). Data in this article is sourced from Morningstar Direct.
To find the month’s best-performing ETFs, we screened those in Morningstar's equity, allocation, or fixed income categories that are available in the UK. We excluded exchange-traded notes, known as ETNs, and ETFs with less than $25 million (£19.6 million) in total assets. We also excluded funds that fall into Morningstar's "trading" categories, as these funds are designed for active traders and are not suitable for long-term investors.
The 10 Best-Performing ETFs for May 2024
1. Invesco Solar Energy UCITS ETF (ISUN)
2. VanEck Crypto & Blockchain Innovators UCITS ETF (DAPP)
3. Amundi MSCI Semiconductors ESG Screened UCITS ETF (CHIP)
4. Global X Silver Miners UCITS ETF (SILV)
5. iShares Global Clean Energy UCITS ETF (INRG)
6. Sprott Uranium Miners UCITS ETF Accumulating (URNM)
7. L&G Clean Energy UCITS ETF (RENW)
8. DNB OBX (OBXD)
9. VanEck Junior Gold Miners UCITS ETF (GDXJ)
10. VanEck Semiconductor UCITS ETF (SMH)
Metrics for the Best-Performing ETFs
Invesco Solar Energy UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.69%
• Morningstar Category: Equity Alternative Energy
The £56 million Invesco Solar Energy ETF was the best-performing ETF in May, with a 16.80% return. The passively managed Invesco ETF beat the 7.60% gain on the average fund in Morningstar’s equity alternative energy category for the month. Over the last 12 months, Invesco Solar Energy has lost 32.96%, falling further than the 7.57% loss on the average fund in its category, leaving the ETF in the 100th percentile.
Invesco Solar Energy takes environmental, social, and governance criteria into consideration. This fund has a Morningstar Medalist Rating of Neutral.
VanEck Crypto & Blockchain Innovators UCITS ETF
• Morningstar Rating: 1 star
• Expense Ratio: 0.65%
• Morningstar Category: Equity Technology
The second-best-performing ETF in May was the £107 million VanEck Crypto & Blockchain Innovators. The passively managed VanEck ETF returned 12.26%, outperforming the average equity technology fund, which gained 2.59%. Looking back over the last 12 months, VanEck Crypto & Blockchain Innovators has returned 68.68%, outperforming the 20.23% return on the average fund in its category, leaving the ETF in the second percentile.
Bronze-rated VanEck Crypto & Blockchain Innovators was launched in April 2021.
Amundi MSCI Semiconductors ESG Screened UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.35%
• Morningstar Category: Equity Technology
The £300 million Amundi MSCI Semiconductors ESG Screened ranked third for the month, returning 11.55%. The Amundi ETF, which is passively managed, topped the 2.59% average return on funds in the equity technology category for May. Over the last 12 months, the Amundi ETF has returned 69.99%, ahead of the 20.23% gain on the average fund in its category, leaving the ETF in the second percentile.
Amundi MSCI Semiconductors ESG Screened, launched in February 2019, has a Morningstar Medalist Rating of Silver.
Global X Silver Miners UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.70%
• Morningstar Category: Equity Precious Metals
With an 11.05% return, the £69 million Global X Silver Miners ranked fourth in May. The passively managed Global X ETF outperformed the 5.49% return on the average equity precious metals fund. Over the last 12 months, the fund has gained 23.23%, ahead of the 15.39% return on funds in its category, placing it in the 19th percentile for the period.
Global X Silver Miners has a Negative Morningstar Medalist Rating.
iShares Global Clean Energy UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.65%
• Morningstar Category: Equity Alternative Energy
The fifth-best-performing ETF was the £2.7 billion iShares Global Clean Energy, which gained 10.66% in May. This passively managed iShares ETF beat the 7.60% average return on funds in the equity alternative energy category. Over the past year, iShares Global Clean Energy fell 19.75%, falling further than the 7.57% drop on the average fund in its category and placing it in the 87th percentile.
The ETF, launched in July 2007, has a Morningstar Medalist Rating of Silver.
Sprott Uranium Miners UCITS ETF
• Morningstar Rating: N/A
• Expense Ratio: 0.85%
• Morningstar Category: Equity Natural Resources
The £260 million Sprott Uranium Miners was the sixth-best-performing UK ETF in May, with a 10.03% return. The return on the passively managed HANetf ETF topped the 2.02% gain on the average fund in Morningstar’s equity natural resources category. Looking back over the last 12 months, Sprott Uranium Miners has returned 89.42%, outperforming the 14.77% return on the average fund in its category, leaving the ETF in the first percentile.
The Bronze-rated Sprott Uranium Miners was launched in May 2022.
L&G Clean Energy UCITS ETF
• Morningstar Rating: 3 stars
• Expense Ratio: 0.49%
• Morningstar Category: Equity Alternative Energy
The seventh-best-performing ETF in May was the £200 million L&G Clean Energy. The passively managed Legal & General ETF returned 9.87%, outperforming the average equity alternative energy fund, which gained 7.60%. Looking back over the last 12 months, L&G Clean Energy has dropped 7.32%, roughly in line with the 7.57% loss on the average fund in its category, leaving the ETF in the 49th percentile.
L&G Clean Energy has a Morningstar Medalist Rating of Gold. It was launched in November 2020.
DNB OBX
• Morningstar Rating: 3 stars
• Expense Ratio: 0.20%
• Morningstar Category: Norway Equity
The £133 million DNB OBX ranked eighth for the month, returning 8.83%. The DNB ETF, which is passively managed, performed roughly in line with the 8.29% average gain on funds in the Norway equity category. Over the last 12 months, the ETF has returned 29.03%, ahead of the 25.23% return on the average fund in its category, leaving it in the 27th percentile for performance.
The Bronze-rated DNB OBX was launched in March 2005.
VanEck Junior Gold Miners UCITS ETF
• Morningstar Rating: 2 stars
• Expense Ratio: 0.55%
• Morningstar Category: Equity Precious Metals
With an 8.78% gain, the £358 million VanEck Junior Gold Miners ranked ninth in May. The passively managed VanEck ETF outperformed the 5.49% return on the average equity precious metals fund. Over the last 12 months, the fund has returned 20.15%, ahead of the 15.39% return on funds in its category, placing it in the 28th percentile.
VanEck Junior Gold Miners, launched in March 2015, has a Morningstar Medalist Rating of Neutral.
VanEck Semiconductor UCITS ETF
• Morningstar Rating: 5 stars
• Expense Ratio: 0.35%
• Morningstar Category: Equity Technology
The tenth-best performing ETF was the £1.6 billion VanEck Semiconductor UCITS ETF, which gained 8.50% in May. The passively managed VanEck ETF beat the 2.59% average return on funds in the equity technology category. Over the past year, the VanEck Semiconductor UCITS ETF rose 51.45%, outperforming the 20.23% return on the average fund in its category and placing it in the 4th percentile.
The VanEck Semiconductor UCITS ETF has a Morningstar Medalist Rating of Silver. It was launched in December 2020.
What Are ETFs?
Exchange-traded funds are investments that trade throughout the day on stock exchanges, much like individual stocks. They differ from traditional mutual funds – known as open-end funds – which can only be bought or sold at a single price each day. Historically, ETFs have tracked indexes, but in recent years, more ETFs have been actively managed. ETFs cover a range of asset classes, including stocks, bonds, commodities, and most recently cryptocurrency.
The Best ETFs: More Ideas to Consider
Investors who would like to find more of the top-performing or cheapest ETFs can do the following:
• Read the latest articles on ETFs.
• Use the ETF screener to find the best ETFs according to your specific criteria. You can search for funds based on their fees, Morningstar Medalist Ratings, manager tenures, and more.
• Compare funds and ETFs side by side and easily follow their valuations, ratings, and fees.
This article was compiled by Bella Albrecht, edited by Lauren Solberg, and reviewed by Sunniva Kolostyak.
As part of our mission to put more information into the hands of investors, this article was compiled from Morningstar’s data and independent research using automation technology. The original article was written by Morningstar reporters and editors. This updated version was reviewed by an editor.
