Best Performing ETFs for 2023

2023 started on a much different note than 2022, which was a year that saw a decline for stocks of more than 18%. Just a few months into this year, risk assets, especially crypto-related investments, have produced double-digit gains.  

Whether an investor wants to see where the momentum is now or if they want to see what’s potentially overpriced, seeing details on the best-performing ETFs of 2023 can be insightful. 

The 10 Best-Performing ETFs of 2023 

To arrive at our final list of 10 best-performing ETFs of 2023, we started with the entire universe of more than 3,000 ETFs. We excluded ETFs that engage in alternative strategies, such as leveraged ETFs and ETNs, which are generally not used by the typical ETF investor. We then sorted the 10 best ETFs by year-to-date performance through March 1, 2023. 

The 10 best performing ETFs of 2023 are: 

Valkyrie Bitcoin Miners ETF 

The Valkyrie Bitcoin Miners ETF (WGMI) is an actively managed ETF that invests in companies that derive at least 50% of their income from mining bitcoin, providing specialized chips, hardware and software or other services to companies in the bitcoin mining industry. WGMI does not invest directly or indirectly in physical bitcoin or bitcoin future contracts; instead, the fund invests in equity securities. 

• Year-to-date return: 69.35% 
• Assets under management: $4.91M 
• Expense ratio: 0.75% 
• As of date: March 1, 2023 

VanEck Digital Assets Mining ETF 

The VanEck Digital Assets Mining ETF (DAM) tracks a tiered market-cap-weighted index of global digital companies with diverse exposure to the crypto asset mining industry. The fund’s underlying index is composed of diversified firms that derive or have the potential to earn at least 50% of their revenue from digital asset activities or projects, including mining-technology companies.  

• Year-to-date return: 62.82% 
• Assets under management: $1.23M 
• Expense ratio: 0.50% 
• As of date: March 1, 2023 

VanEck Digital Transformation ETF 

The VanEck Digital Transformation ETF (DAPP) tracks a market-cap-weighted index of global innovative companies that are involved in the digitalization of the world’s economy through a diverse range of digital assets. The fund’s underlying index is composed of diversified companies of all capitalization defined as “digital assets stocks” that derive at least 50% of their revenue from digital asset projects.  

• Year-to-date return: 57.30% 
• Assets under management: $26.50M 
• Expense ratio: 0.50% 
• As of date: March 1, 2023 

Bitwise Crypto Industry Innovators ETF 

The Bitwise Crypto Industry Innovators ETF (BITQ) is a passively managed ETF that tracks an index of 30 crypto companies from around the world, including emerging markets. The index includes those that derive more than 75% of their revenue directly from crypto assets, as well as large cap firms involved with at least one significant business focused on the crypto economy.  

• Year-to-date return: 56.34% 
• Assets under management: $52.49M 
• Expense ratio: 0.85% 
• As of date: March 1, 2023 

Global X Blockchain and Bitcoin Strategy ETF 

The Global X Blockchain and Bitcoin Strategy ETF (BITS) is an actively managed ETF that aims to capture the long-term growth potential of blockchain companies and bitcoin futures. Blockchain companies include those involved in crypto mining, blockchain and digital asset transactions, applications, hardware and integration, and may include those with direct ownership of digital assets. 

• Year-to-date return: 47.31% 
• Assets under management: $9.49M 
• Expense ratio: 0.65% 
• As of date: March 1, 2023 

iShares Blockchain and Tech ETF 

The iShares Blockchain and Tech ETF (IBLC) tracks an index of global companies that are involved in the development, innovation and utilization of blockchain and crypto technologies. The index includes companies involved in cryptocurrency mining, cryptocurrency trading and exchanges, or blockchain technology. It also may select companies that design and manufacture graphics processing unit (GPU) chips necessary for mining.  

• Year-to-date return: 46.67% 
• Assets under management: $5.81M 
• Expense ratio: 0.47% 
• As of date: March 1, 2023 

Invesco Alerian Galaxy Crypto Economy ETF 

The Invesco Alerian Galaxy Crypto Economy ETF (SATO) tracks an index that holds cryptocurrency-focused equities and crypto exchange-traded products and trusts. The equity portion of the index comprises stocks of pure-play digital asset companies that are engaged in cryptocurrency and its relative mining, buying or enabling technologies.  

• Year-to-date return: 46.41% 
• Assets under management: $2.53M 
• Expense ratio: 0.61% 
• As of date: March 1, 2023 

VanEck Bitcoin Strategy ETF 

The VanEck Bitcoin Strategy ETF (XBTF) provides indirect exposure to bitcoin by investing in front-month bitcoin futures contracts. XBTF expects to hold cash, cash instruments and debt securities to provide liquidity and serve as collateral. The fund may also hold equities of "bitcoin-related companies" if the fund approaches or exceeds its allowed position limits. 

• Year-to-date return: 40.23% 
• Assets under management: $29.26M 
• Expense ratio: 0.65% 
• As of date: March 1, 2023 

ProShares Bitcoin Strategy ETF 

The ProShares Bitcoin Strategy ETF (BITO) is an actively managed ETF consisting of front-month bitcoin futures trading on commodity exchanges, such as the Chicago Mercantile Exchange (CME). Therefore, BITO does not invest directly in bitcoin. Instead, the fund provides indirect exposure to bitcoin returns in an ETF wrapper. 

• Year-to-date return: 39.75% 
• Assets under management: $777.93M 
• Expense ratio: 0.95% 
• As of date: March 1, 2023  

Grayscale Future of Finance ETF 

The Grayscale Future of Finance ETF (GFOF) is a passively managed ETF that tracks a market-cap-weighted index of global stocks identified as shaping the “future of finance.” GFOF holdings may include companies involved in digital transactions, applications and infrastructure around the digital asset ecosystem classified under three categories: financial foundations, technology solutions and digital asset infrastructure. 

• Year-to-date return: 39.49% 
• Assets under management: $4.65M 
• Expense ratio: 0.70% 
• As of date: March 1, 2023 

Bottom Line 

Investors should use caution when evaluating the best-performing ETFs of 2023 by short-term performance alone. For example, although some of 2023’s best performers had short-term gains of more than 60%, those same funds have one-year declines of more than –70%.  

When choosing the right ETF to add to a portfolio, investors should also evaluate long-term performance, assets under management, expense ratios and holdings. 

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