- Gold and precious metal funds have dominated the performance charts in the first quarter of 2025.
- The 2 most popular sector with UK investors were the worst performing sectors in the first quarter with both North America and Technology sectors averaging the largest losses for the period.
- The iShares Gold Producers UCITS ETF, which aims to replicate the performance of the S&P Commodity Producers Gold Index, returned growth of 24.44% in the first quarter of 2025, the highest of any other funds in the IA Global sector.
Gold and precious metal funds, alongside Chinese equity funds, topped the performance charts in the first quarter of 2025. The period was marked by strong gains in commodities and specialist strategies - particularly within the IA Specialist sector while North American equities, technology, and Indian equity funds experienced the largest drop in performance.
In this article, we take a closer look at the sector performances and identify some of the best performing funds in Q1 2025. We will also feature some of the worst performing funds and sectors of the quarter.
Gold and Precious Metals Funds Dominated In Q1 2025
Many global investment sectors experienced a sharp drop in value during the first quarter of 2025, with US equity and technology funds among the hardest hit. These two areas have long been relied upon by investors to drive portfolio growth, but recent market conditions highlighted their vulnerability.
While the year began with optimism, conditions worsened in March as concerns around global trade and economic stability escalated. Technology stocks, which had been a major engine of growth in recent years, came under pressure due to high valuations, weaker earnings forecasts, and concerns over continued consumer spending. These factors triggered a broad sell-off across the sector.
US equity funds also fell back, weighed down by slowing growth expectations and persistent inflation concerns. However, the biggest blow came towards the end of the quarter when former President Trump announced plans to reintroduce tariffs on Chinese imports. This unexpected move reignited fears of a trade war and raised doubts about the near-term outlook for global markets.
As investor sentiment shifted, many sought to reduce exposure to riskier assets. Funds heavily exposed to US and technology stocks were hit hardest, and their poor performance had a significant impact on overall portfolio returns for many investors. The events of Q1 served as a reminder that even the most popular and previously reliable sectors can be vulnerable to sudden shifts in global policy and sentiment.
Best Performing Funds in Q1 2025
The majority of the best-performing funds in the first quarter of 2025 came from the IA Specialist sector. While this sector is diverse, what stood out was the dominance of gold and precious metals funds.
The table above lists the 10 best-performing funds in 2025 so far. Each of these funds ranks within the top 25% of their respective sectors over the past 1, 3, and 6 months. Their 5 year fund rating is also provided, which is based upon their performance over a 1, 3 & 5 year period.
However, it is important to note that the performance data and commentary for these funds are based solely on their first-quarter results, covering the period up to the end of March 2025—prior to Donald Trump's 'Liberation Day' tariff announcement on 2 April, which may have a material impact on future market conditions and fund performance.
How Yodelar Rate Fund Performance
Amundi Euro Stoxx Banks
Launched in December 2013, the Amundi Euro Stoxx Banks fund offers focused access to Europe’s leading banks. It aims to closely match the performance of the EURO STOXX® Banks Index, which includes major banking groups across the eurozone.
The fund invests directly in the shares of the banks in the index, giving it a strong link to the actual performance of the sector. It includes a mix of large and medium-sized banks from established European markets, providing a clear and targeted route into the region’s financial industry.
With £1.33 billion under management, it has delivered standout results in recent months. In the past month alone, it grew by 14.59%, well ahead of the average loss of 1.88% seen across similar funds. Over three months, it returned 39.50%, compared to a sector average of just 3.71%, placing it at the top of its peer group. Its six-month return of 37.83% also significantly outpaced the sector’s 3.83%.
These strong returns reflect a combination of improving economic conditions in the eurozone and rising interest rates, which have boosted bank profits. Positive changes in financial regulation and a broader recovery in the sector have also helped lift investor confidence.
Looking ahead, potential trade agreements between Europe and the United States—particularly around tariff reductions—could further strengthen the outlook for eurozone banks. Easing trade tensions and improved transatlantic financial cooperation could increase cross-border investment and credit flows, benefiting European financial institutions. If such deals are struck, they could create additional tailwinds for the fund by supporting loan growth, corporate activity, and overall sector profitability.
With a low annual fee of 0.30%, the fund continues to offer a cost-effective and efficient route for investors looking to benefit from the evolving dynamics of the eurozone banking sector.
iShares MSCI Poland UCITS ETF
Launched in January 2011, the iShares MSCI Poland UCITS ETF offers investors focused exposure to the Polish stock market by tracking the MSCI Poland Index. The fund holds a mix of large and mid-sized Polish companies and aims to deliver long-term growth by reinvesting the income it receives from its investments. With approximately £151.25 million in assets under management, it provides a straightforward, low-cost way to access Poland’s equity market.
Its recent performance has been notably strong. Over the last month of the quarter, the fund returned 7.60%, ahead of the sector average of -1.88%. Over three months, it gained 31.02%, placing it second out of 210 funds in its category and significantly outperforming the sector average of 8.77%. Its six-month return of 24.41% also stands out against the 7.19% sector average.
The fund’s gains have been driven by its heavy exposure to Poland’s financial sector—currently over 50% of the portfolio—as well as meaningful positions in energy and industrials.
Looking ahead, the fund’s outlook may be influenced by broader geopolitical and trade developments. Discussions around new trade agreements between the United States and European nations, including Poland, could play a key role in shaping investor confidence and capital flows into the region.
iShares Gold Producers UCITS ETF
The iShares Gold Producers UCITS ETF has emerged as a standout performer within the IA Global sector, consistently ranking among the top funds by delivering strong, risk-adjusted returns. With £1.72 billion in assets under management, the fund has shown clear outperformance over the first quarter of 2025. In March alone, it returned 4.58%—significantly ahead of the sector average of -6.75%—ranking 1st out of 530 funds. Its year-to-date return of 27.44% also places it firmly at the top of its peer group, compared to a sector average decline of -2.13%.
The fund tracks the S&P Commodity Producers Gold Index and provides investors with targeted exposure to companies involved in the global exploration and production of gold. Rather than holding physical gold, the fund invests in mining equities, offering indirect participation in gold price movements with added growth potential from company earnings.
The fund’s strong performance has been driven by several converging factors. Rising geopolitical tensions and growing fears of a global trade conflict have fuelled a surge in gold prices, as investors moved into safe-haven assets. This shift in sentiment led to record inflows into gold-backed ETFs, lifting the broader market for precious metals. At the same time, leading gold producers benefitted from steady production costs, robust free cash flow, and improved capital discipline, including enhanced shareholder returns through share buybacks and dividends.
This combination of favourable market dynamics and operational strength among gold miners has supported the fund’s dominant position in 2025 so far. Looking ahead, any escalation in global trade disputes or continued uncertainty could sustain investor interest in gold-related assets, potentially reinforcing the fund’s positive momentum.
Jupiter Gold & Silver Fund
The Jupiter Gold & Silver Fund is an actively managed investment that focuses on companies involved in gold and silver mining, with some exposure to physical precious metals. At least 70% of the fund is invested in listed mining firms of all sizes from around the world, while a portion may also be allocated to ETFs to boost exposure to movements in gold and silver prices. The portfolio is intentionally concentrated, typically holding fewer than 60 stocks to maintain a high-conviction approach.
Since its launch on 8 March 2016, the fund has grown to manage approximately £802.67 million. Its performance in early 2025 has been particularly strong, driven by rising precious metal prices and growing investor demand for safe-haven assets.
In March, the fund returned growth of 7.93%, outperforming the sector average of -1.88%. Over three months, it delivered returns of 27.25%, well above the sector’s 3.71% average. Its six-month return of 27.13% also far exceeded the sector average of 4.25%, placing it firmly among the best performers in its sector for the quarter. The fund also has a high 4 star rating for its consistent performance over the past 5 years which reflects the funds longer term performance levels.
Germany AlphaDEX® UCITS ETF
The Germany AlphaDEX® UCITS ETF offers investors access to a broad mix of German companies, but instead of picking stocks based on size, it selects them using financial measures such as growth and value potential. It follows the NASDAQ AlphaDEX® Germany Index, which aims to prioritise company fundamentals over market capitalisation.
The fund has delivered consistently strong results and holds a top 5 star rating based on its five year performance. Over the past month, it returned 12.16%, well ahead of the sector average of -1.88%, ranking 2nd out of 209 funds. Its three-month return of 27.19% and six-month return of 31.39% also significantly outperformed the sector averages of 3.71% and 4.25% respectively.
The fund is broadly diversified, with major exposure to industrials, consumer-focused businesses, and financials - core sectors that reflect the strength of Germany’s export-driven economy. Strong global demand for German engineering and manufacturing has played a major role in the fund’s recent success.
However, with the outlook for international trade now more uncertain following recent tariff announcements, future performance may depend on how Germany’s key industries adapt to any disruption in cross-border supply chains and demand.
Ninety One Global Gold
The Ninety One Global Gold fund manages £361.16 million in assets and aims to deliver capital growth over a minimum 5 five years. It invests at least two-thirds of its portfolio in shares of companies involved in gold mining worldwide, alongside related derivatives linked to the performance of these companies.
The fund is actively managed, focusing on a combination of established gold producers and emerging exploration firms with strong balance sheets and attractive growth potential. Geographically, the portfolio is diversified across major gold-producing regions, including Canada, Australasia, Africa, and the United States.
Over the past 1, 3, and 6 months, the fund has delivered returns of 5.23%, 26.87%, and 18.25%, respectively. These results stand well above the IA Specialist sector averages of -1.88%, 3.71%, and 4.25% for the same periods. The fund's track record highlights its ability to harness positive market movements alongside effective stock selection in the gold mining sector.
WS Charteris Gold & Precious Metals
The WS Charteris Gold & Precious Metals Fund has been the standout performer in the IA Commodity/Natural Resources sector so far in 2025. This actively managed fund focuses on companies involved in gold and silver mining, particularly smaller and mid-sized firms that are often undervalued or overlooked by mainstream investors. Its strategy leans towards a contrarian style, seeking growth in areas others may have discounted.
The portfolio typically includes 20 to 50 well-established mining and metals companies involved in the extraction, refining, and distribution of precious metals. To enhance diversification, the fund may also invest in exchange-traded products, collective funds, and short-term cash instruments.
Despite a small £17.80 million under management, the fund has delivered strong short-term performance. It returned 7.73% over the past month and 25.26% over three months, well ahead of the sector averages of -2.09% and 4.29% respectively—ranking it as the top fund in its category. Its six-month return of 15.99% also outpaced the sector average of 1.99%.
However, while the fund has shown a sharp recovery in recent months, its longer-term track record remains less compelling. It currently holds a 2-star rating over five years, reflecting weaker historical consistency.
BlackRock Gold & General
The BlackRock Gold & General Fund is one of the UK’s most established and widely held gold-focused funds, with £1.097 billion under management. Its core aim is to deliver long-term growth by investing in companies involved in gold mining and other precious metals, with at least 70% of its assets allocated to this space. Designed for investors with a time horizon of five years or more, the fund takes an actively managed approach to identifying opportunities within the global mining sector.
So far in 2025, the fund has produced strong results. Over the past month, it returned 3.87%, followed by a three-month return of 25.30%, and 18.02% over six months. These gains compare favourably against the sector averages of -1.88%, 3.71%, and 4.25% respectively, placing the fund among the top performers in the IA Specialist sector.
The fund’s consistent outperformance reflects a combination of experienced management, disciplined stock selection, and a focus on high-quality mining firms with strong fundamentals. For investors seeking exposure to gold and precious metals through a well-established and actively managed fund, BlackRock Gold & General remains a compelling option with a strong track record across multiple market cycles - hence its 4 star rating.
SVS Baker Steel Gold & Precious Metals
The SVS Baker Steel Gold & Precious Metals Fund is an actively managed strategy focused on delivering long-term capital growth, with a target to outperform the MSCI ACWI Select Gold Miners IMI Index over rolling five-year periods, after fees. The fund invests at least 70% of its assets in companies involved in the gold and precious metals sector, including mining, refining, production, and distribution.
With a high-conviction approach, the fund concentrates on global gold mining companies, often favouring mid-tier and junior producers where it sees the greatest potential for growth. This selective style allows it to take advantage of opportunities that may be missed by more broadly diversified funds.
Currently managing £27.36 million in assets, the fund has delivered impressive results in early 2025. Over the past month, it returned 7.46%, significantly ahead of the sector average of -1.88%. Over three months, it gained 25.18% versus the sector’s 3.71%, while its six-month return of 14.49% also comfortably outperformed the 4.25% sector average.
Key contributors to performance include strong gains from core holdings such as Pan American Silver Corp and Fresnillo PLC, both of which have benefited from rising precious metal prices and improved operational performance.
iShares BIC 50 UCITS ETF
The iShares BIC 50 UCITS ETF, launched on 20 April 2007, manages approximately £118.71 million in assets and provides investors with access to 50 of the largest companies across Brazil, India, and China—three of the world’s most prominent emerging markets. The fund directly holds all the companies in the FTSE BIC 50 Index in line with their weighting, offering a simple and diversified way to invest in these regions.
Recent performance has been strong. Over the past month, the fund returned 5.36%, and over three months, it gained 25.18%, outperforming sector averages. Its six-month return of 14.49% ranks it 2nd out of 209 funds in the IA Specialist sector and places it firmly in the top quartile. However, over a five-year period, performance has been more moderate, reflected in its 3-star rating.
The fund has benefited from its exposure to fast-growing sectors such as consumer goods, financial services, and communications, with a particular focus on China and India. Leading holdings like Tencent and Alibaba have played a key role in boosting returns, as investor confidence in Asian tech and consumer markets continues to rebound.
However, the fund now faces a growing level of risk due to rising geopolitical tensions. The recent announcement of US tariffs on Chinese imports poses a material threat to Chinese growth and, by extension, to the fund’s future performance. As a significant portion of the portfolio is allocated to Chinese companies that are closely tied to global trade, any escalation in tariffs or restrictions could have a direct impact on earnings and investor sentiment.
Worst Performing Funds of the First Quarter in 2025
The funds with the worst performance in the first quarter were North American equity funds, with Indian equity funds and technology funds not far behind. This underperformance is largely attributed to uncertainty through out the first quarter as to the threat of extensive trade tariffs by President Donald Trump, which heightened market volatility and economic uncertainty - particularly towards the end of the quarter.
The table above highlights 10 of the poorest performing funds in the first quarter of 2025, with a significant number being North American equity funds.
Why Growth Markets Were Among The Worst Performers
Investor confidence took a clear hit in the first quarter of 2025, as growing fears about US trade tariffs weighed heavily on global markets - especially in countries and sectors that depend on exports. Even though the new tariffs weren’t officially announced until April, the worry that they were coming was enough to drag down performance. This highlights how markets don’t just react to confirmed policies - they often move in response to fear and uncertainty.
Now that the tariffs have been formally introduced, those concerns have become reality. The new US trade policy includes a blanket 10% tax on all imports, plus extra tariffs aimed at countries with large trade surpluses, like China. While the goal was to boost US manufacturing and fix trade imbalances, the immediate result has been one of the sharpest market sell-offs in recent years.
Sectors that were already struggling - such as manufacturing, consumer goods, and global exporters - were hit the hardest once the tariffs came into force. These industries are sensitive to rising costs and rely on smooth international supply chains, which are now under pressure. Smaller companies have suffered more than most, as they have less ability to absorb higher costs or adjust quickly. This has added to the losses in both the IA North America and IA North American Smaller Companies sectors, which were already underperforming in Q1.
The combination of rising prices and slowing economic growth has renewed fears of stagflation - a difficult environment for both businesses and consumers. Markets that had previously led the post-COVID recovery have seen their momentum reversed, showing just how quickly sentiment can shift.
This is why it’s so important to have an adviser who not only understands market movements but also has a deep knowledge of fund and fund manager performance. A well-informed adviser actively tracks global events and policy changes, helping investors position their portfolios more effectively through all market cycles. In uncertain times, expert guidance can make the difference between reacting to volatility and navigating it with clarity and purpose.
Summary
The first quarter of 2025 proved to be a stark reminder of how quickly market conditions can shift. Gold and precious metals funds were the clear winners, benefiting from rising commodity prices, growing demand for safe-haven assets, and increasing geopolitical uncertainty. Meanwhile, previously strong sectors - such as US equities, technology, and Indian equity funds - saw sharp declines, reversing much of their prior momentum.
The return of aggressive trade policies, particularly President Trump’s sweeping tariffs introduced in April, created significant market anxiety long before they were officially confirmed. The resulting uncertainty weighed on investor confidence, causing many of the markets and sectors that had driven global growth in recent years to fall sharply. When the tariffs were enacted, they triggered one of the most significant market sell-offs in recent history, with the hardest-hit sectors being those already under pressure in Q1.
While this period has underscored the defensive value of specialist strategies and commodities in times of stress, it also highlights a broader truth: market cycles are shaped as much by sentiment and speculation as by economic data. In this environment, having an adviser who deeply understands market dynamics, fund performance, and geopolitical developments is more valuable than ever. An expert adviser can help investors cut through the noise, avoid emotional decisions, and ensure their portfolios remain efficiently positioned through both stable and uncertain periods.
As global markets adjust to a more volatile and policy-sensitive landscape, the first quarter of 2025 has shown that a well-informed, proactive investment strategy - built on deep analysis and supported by expert advice - is not just beneficial but essential.
Is Your Investment Portfolio Positioned for the Year Ahead?
The first quarter of 2025 has served as a timely reminder of how quickly market conditions can shift. As highlighted in this article, sectors that have traditionally driven portfolio growth - such as US equities, Indian funds, and technology - faced unexpected challenges, while areas like gold and precious metals led performance during a period of heightened uncertainty and geopolitical tension.
These shifts underline the importance of regularly reviewing your portfolio to ensure it remains well positioned for changing market dynamics. At Yodelar, our analysis of thousands of UK investor portfolios has identified that many contain inefficiencies - often in the form of underperforming funds or unbalanced exposure - that can quietly limit long-term growth potential.
Our portfolio review service offers a clear, data-driven way to assess how your investments compare with similarly risk-rated portfolios. It provides a transparent view of your portfolio’s strengths, areas for improvement, and overall competitiveness.
With markets entering a more uncertain and policy-sensitive phase, having greater visibility into the quality of your holdings can help ensure your strategy remains efficient, resilient, and aligned with your financial goals.
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