Top exchange-traded funds (ETFs) help investors diversify across various asset classes through a type of investment fund that tracks an underlying index, commodity, or asset class. ETFs trade on stock exchanges, providing investors cost-effective exposure to a diversified portfolio without having to buy individual securities. Essentially, they combine the features of stocks and mutual funds, offering easy tradability and broad market coverage. 

Below, we review five top equity, bond, fixed income, commodities, and currency ETFs that have generated superior returns over the last month, excluding inverse and leveraged ETFs as well as funds with less than $50 million in assets under management (AUM). All data below is as of Aug. 21.

Equity ETF with the Best 1-Month Return: Invesco Dynamic Energy Exploration & Production ETF (PXE)

• Performance 1 Month: 15.37%
• Expense Ratio: 0.63%
• Annual Dividend Yield: 3.4%
• 30-Day Average Daily Volume: 52,651
• Assets Under Management: $162.55 million
• Inception Date: Oct. 26, 2005
• Issuer: Invesco

PXE tracks the Dynamic Energy Exploration & Production Intellidex Index, a benchmark comprising U.S. companies involved in the exploration and production of natural resources used to produce energy.

This ETF’s top three holdings are natural gas producer Ovintiv Inc. (OVV) with a 5.59% weighting, independent energy company HF Sinclair Corp. (DINO) with a 5.54% weighting, and Marathon Petroleum Corp., (MPC), a petroleum refining, marketing, and transportation company that was a subsidiary of Marathon Oil Corp. until a spinoff in 2011, with a 5.49% weighting. The fund has benefited from a nearly 20% rise in West Texas Intermediate (WTI) oil prices since late June.

Bond ETF with the Best 1-Month Return: iShares iBonds Dec 2023 Term Muni Bond ETF (IBML)

• Performance 1 Month: 0.28%
• Expense Ratio: 0.18%
• Annual Dividend Yield: 1.44%
• 30-Day Average Daily Volume: 72,003
• Assets Under Management: $455.06 million
• Inception Date: April 11, 2017
• Issuer: BlackRock

IBML tracks the S&P AMT-Free Municipal Series Dec 2023 Index. The benchmark includes municipal bonds primarily from issuers that are U.S. state, federal district, or local government agencies.

The ETF’s top allocations include District of Columbia Income Tax Rev 5.0% maturing on Dec. 1, 2023, at 3.61%; University of Texas University Revs VAR maturing Aug. 1, 2032, at 3.58%; and University of California Revs VAR maturing May 15, 2048 at 3.39%. The fund capitalized on rising bond yields throughout August.

Fixed Income ETF with the Best 1-Month Return: FolioBeyond Alternative Income & Interest Rate Hedge ETF (RISR)

• Performance 1 Month: 4.34%
• Expense Ratio: 0.99%
• Annual Dividend Yield: 6.83%
• 30-Day Average Daily Volume: 26,427
• Assets Under Management: $57.5 million
• Inception Date: Sept. 30, 2021
• Issuer: Tidal/FolioBeyond

RISR tracks the ICE BofA All Maturity US Government Index, a benchmark consisting of interest-only mortgage-backed securities (MBS) and U.S. Treasury bonds.

The fund’s top three holdings are the Ginnie Mae REMIC Trust 2022-101 JI 4.5% maturing April 20, 2050, with a 6.27% allocation; the Ginnie Mae REMIC Trust 2022-006 PI 3.5% maturing Jan. 20, 2052, with a 5.4% allocation; and the Fannie Mae REMIC Trust 2020-98 OI 4.5% maturing Jan. 25, 2051, with a 4.74% allocation. RISR, which helps to manage risk from interest rate volatility, has benefited from a more hawkish Federal Reserve over the last month.

Commodities ETF with the Best 1-Month Return: Breakwave Dry Bulk Shipping ETF (BDRY)

• Performance 1 Month: 12.6%
• Expense Ratio: 2.85%
• Annual Dividend Yield: N/A
• 30-Day Average Daily Volume: 365,886
• Assets Under Management: $77.95 million
• Inception Date: March 22, 2018
• Issuer: etfmg

BDRY tracks the Breakwave Dry Freight Futures Index, a benchmark made up of a combination of Capesize, Panamax and Supramax freight derivatives.

The ETF’s top three holdings—Baltic Exchange Panamax September 2023 futures, Baltic Capesize Time Charter September 2023 futures, and Baltic Capesize Time Charter August 2023 futures—carry a combined portfolio allocation of 47.29%. The fund has benefited after Sea-Intelligence data in August showed an increase in annualized growth in North American East Coast imports volume compared with 2019, the last pre-pandemic year used for comparison by this research firm.

Currency ETF with the Best 1-Month Return: Invesco DB US Dollar Index Bullish Fund (UUP)

• Performance 1 Month: 4.2%
• Expense Ratio: 0.78%
• Annual Dividend Yield: 0.87%
• 30-Day Average Daily Volume: 1,304,056
• Assets Under Management: $536.21 million
• Inception Date: Feb. 20, 2007
• Issuer: Invesco

UUP tracks the DB Long USD Currency Portfolio Index ER, a benchmark that reflects changes in the value of the U.S. dollar relative to a basket of world currencies. However, it differs from its benchmark by having overweight euro exposure.

Specifically, the fund shorts the euro (EUR), Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD), Swedish krona (SEK), and Swiss franc (CHF). UUP has outperformed other currency funds over the last month on broad-based dollar strength amid the Fed’s commitment to maintaining a tighter policy stance for an extended period.

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As of the date this article was written, the author did not own any of the above ETFs.