We are midway through the first quarter. Wall Street has been on a bull run, outplaying tariff trade war fears and concerns over a prolonged pause on Fed rate cuts. The S&P 500 has been hitting new record highs while the Dow Jones and the Nasdaq Composite Index are just a few points away from record highs.

We have highlighted five top-performing ETFs from different sectors that have been the leaders so far in the first quarter. These are AdvisorShares Psychedelics ETF (PSIL Quick QuotePSIL - Free Report) , iShares MSCI Global Gold Miners ETF (RING Quick QuoteRING - Free Report) , Range Nuclear Renaissance Index ETF (NUKZ Quick QuoteNUKZ - Free Report) , iShares MSCI Global Silver and Metals Miners ETF (SLVP Quick QuoteSLVP - Free Report) , and Roundhill Video Games ETF (NERD Quick QuoteNERD - Free Report) .

A combination of strong economic indicators, advancements in AI and solid corporate earnings season are driving the rally. The U.S. economy has demonstrated robust growth, bolstered by strong consumer confidence, declining unemployment rates, rising wages and positive manufacturing surveys. Significant investments in AI and related technologies have spurred optimism about future productivity gains and economic expansion. Companies are allocating substantial capital toward AI, anticipating long-term benefits that justify current valuations.

Meanwhile, this reporting cycle has been a good one, with the growth pace showing a notable accelerating trend and companies comfortably beating consensus estimates. Total earnings for 74% of the S&P 500 are up 12.1% from the same period last year on 5.6% higher revenues, with 77.8% beating EPS estimates and 64.6% beating revenue estimates. This is notably a better performance relative to other recent periods, particularly in terms of the growth pace.

Further, the rally has now broadened beyond the "Magnificent Seven" to other sectors like financials and industrials (read: AI Winners Following the DeepSeek Disruption). 

Lower interest rates add to the strength. Though the Fed has signaled no rush to reduce interest rates further as inflation remains elevated, since September 2024 it has made a series of rate cuts, by a total of 100 bps.

Trade Worries Lingers

President Donald Trump's tariff talks, which could lead to a global trade war, have been weighing on the stock market. Trump’s 25% tariff on goods from Mexico and Canada, which was delayed by a month, is set to take effect next month. Last week, Trump announced global 25% tariffs on steel and aluminum imports, which is expected to take effect on March 12. He also signed plans for reciprocal tariffs but delayed their implementation until April to allow his administration to negotiate on a one-by-one basis with countries that could be impacted.

Another tariff threat came this week when Donald Trump threatened to impose tariffs of 25% on automobile, semiconductor and pharmaceutical imports as soon as April.

Let’s dig into the details of the abovementioned ETFs:

AdvisorShares Psychedelics ETF (PSIL Quick QuotePSIL - Free Report) – Up 32.9%

AdvisorShares Psychedelics ETF invests in the emerging psychedelic drugs sector, offering exposure to biotechnology, pharmaceutical and life sciences companies that it sees as leading the way in this nascent industry. It is an actively managed fund and holds 24 stocks in its basket with large concentration on the top two firms. AdvisorShares Psychedelics ETF has accumulated $11 million in its asset base and charges 99 bps in annual fees. It trades in an average daily volume of 14,000 shares. 

iShares MSCI Global Gold Miners ETF (RING Quick QuoteRING - Free Report) – Up 23.4%

iShares MSCI Global Gold Miners ETF offers exposure to companies that derive the majority of their revenues from gold mining. It follows the MSCI ACWI Select Gold Miners Investable Market Index and holds 38 securities in its portfolio. Canadian firms take more than half of the portfolio, while the United States takes the next spot at 20% share. RING is the cheapest choice in the gold mining space, charging just 39 bps in fees and expenses. It has been able to manage assets worth $1.1 billion and trades in a good volume of 229,000 shares per day (read: Gold Rally to Continue: Leveraged ETFs to Make Profits). 

Range Nuclear Renaissance Index ETF (NUKZ Quick QuoteNUKZ - Free Report) – Up 21.3%

Range Nuclear Renaissance Index ETF is designed to provide exposure to companies that are involved in the following segments: advanced reactor, utilities, construction & services, and fuel. It tracks the Range Nuclear Renaissance Index and holds 38 stocks in its basket, with the largest concentration on the top firm. Range Nuclear Renaissance Index ETF has accumulated $246.3 million in its asset base while trading in an average daily volume of 160,000 shares. It charges 85 bps in annual fees. 

iShares MSCI Global Silver and Metals Miners ETF (SLVP Quick QuoteSLVP - Free Report) – Up 18.5%

iShares MSCI Global Silver and Metals Miners ETF follows the MSCI ACWI Select Silver Miners Investable Market Index, providing investors exposure to companies that derive the majority of revenues from silver exploration or metals mining. It holds 27 stocks in its basket, with Canadian firms making up the lion’s share at 72.3%, while the United States and Mexico round off the next spots. iShares MSCI Global Silver and Metals Miners ETF has an AUM of $241.7 million and an average daily volume of about 133,000 shares. It charges 39 bps in annual fees (read: 5 Best-Performing Sector ETFs of Volatile January). 

Roundhill Video Games ETF (NERD Quick QuoteNERD - Free Report) – Up 18.3%

Roundhill Video Games ETF offers exposure to 35 companies engaged in video game publishing and/or video game development. NERD follows the Nasdaq CTA Global Video Games Software Index, charging investors 50 bps as annual fees. Roundhill Video Games ETF accumulated $23.4 million in its asset base while trading in an average daily volume of 4,000 shares.