The top-performing alternatives ETFs of FY25

If there’s one thing the past year proved, it’s this: investors wanted safety – and they found it in alternatives. From Bitcoin, the so-called digital gold, to bullion and broader precious metals, alternatives ETFs were on a tear in FY25.

The rush into these strategies was hardly surprising. Trump’s return to the White House reignited trade war fears, inflation refused to budge, and conflicts in the Middle East and Ukraine kept markets on edge.

In this wire, we break down the top-performing alternatives ETFs by theme, unpack what drove their returns, and look at whether the momentum can continue.

The top 10 ALTERNATIVES ETFs of FY25

Source: Morningstar, as at 3 July 2025

What drove Bitcoin's strong performance?

Three Bitcoin ETFs - VanEck Bitcoin ETF (ASX: VBTC), Global X 21Shares Bitcoin ETF (CBOE: EBTC) and Monochrome Bitcoin ETF (CBOE: IBTC) - topped the table in FY25, each returning nearly 78%. 

Bridget Nichols, Chief Operating Officer at Monochrome Asset Management, says the long-term case for Bitcoin continues to strengthen, particularly as institutional demand grows and retail adoption remains relatively low.

“Bitcoin continues to show long-term growth potential, supported by increasing institutional participation and relatively low retail adoption to date,” Nichols said.

“While returns can never be guaranteed, we believe the broader adoption of regulated access vehicles - such as IBTC with its two-way in-kind transfer facility - will continue to enable more investors to gain exposure without navigating the complexities of direct crypto markets.”

She points to a combination of structural and macroeconomic factors that could support Bitcoin’s price over the coming years.

“Bitcoin has increasingly been seen as a store of value, particularly during periods of geopolitical tension and monetary uncertainty. Key structural factors include the fixed supply of Bitcoin and the scheduled halvings, which reduce new issuance and intensify existing supply constraints," she says.

What drove gold's strong performance?

Six gold ETFs made the top 10 including iShares Physical Gold ETF (ASX: GLDN), VanEck Gold Bullion ETF (ASX: NUGG), and Perth Mint Gold (ASX: PMGOLD) - with each returning over 40%. The rally reflected both tactical and structural demand.

“A higher gold price correlates with investors’ increasing unease about a weakening global financial system,” says Arian Neiron, CEO and Managing Director, Asia Pacific at VanEck.

He points to a mix of inflation, debt, and geopolitical stress as key drivers. These, he says, continue to “fuel demand for gold as a safe-haven asset.”

But the case for gold isn’t just cyclical. Neiron says it remains a tangible, real store of value outside the banking system - and one that can’t default.

“It is the world’s oldest currency, but unlike fiat currencies, gold cannot default or go bankrupt," he says.

What drove other precious metals?

Gold makes up ~65% of the 10th top performing alternatives ETF, the Global X Physical Precious Metals Basket ETF (ASX: ETPMPM), with the balance invested in platinum, palladium and silver.

While often overshadowed by gold, platinum is attracting renewed interest thanks to persistent demand and tight supply.

The commodity has emerged as the top-performing metal in 2025 — up over 40% year to date. According to Justin Lin, Investment Strategist at Global X, the rally has been “driven by a supply squeeze that’s been long in the making.”

Lin says palladium has also benefited from the momentum in platinum, but he is less optimistic about its long-term trajectory.

“Palladium and platinum are linked as they can be substituted for one another for use in autocatalysts depending on relative prices. But the long-term picture for palladium is still structurally negative based on the EV transition," he says.

He noted that around 80% of palladium’s industrial use is tied to catalytic converters in internal combustion engine (ICE) vehicles — a segment facing structural decline.

Silver, meanwhile, has been pulled in two directions — part monetary metal, part industrial commodity.

“In the first half of the year, silver largely followed gold’s lead through a catch-up trade driven by the gold-silver ratio. The gold-silver ratio at one point exceeded 100x, which is one of only three times this has happened in history," says Lin.

While that relative value trade may now be largely exhausted, Lin sees further potential ahead.

“Silver can still outperform meaningfully if the secondary element, industrial demand, exceeds expectations – something that may occur if the economic outlook stabilises," he says.

How we compile these lists

We have pulled our performance numbers from Morningstar.

The ETFs are all listed on Livewire’s Find Funds menu (top right-hand side of your webpage). Needless to say, this is not an exhaustive list of all ETFs listed on the ASX and CBOE.

The filters we used are:

• In the “Fund type” box, select “ETFs”
• In the "Asset Class" box, select "Alternatives"
• We then manually filtered results based on 1-year returns

It’s worth noting that the results can change again based on 5-year returns and it’s worth looking at longer-term performance across cycles when researching funds or making investment decisions. Some of the top-performing ETFs have less than a three-year track record.