Top 5 ETFs That Defied February's Market Turmoil

Wall Street wrapped February on a gloomy note, weighed down by concerns over economic slowdown and fresh tariff threats from President Donald Trump.

The Nasdaq Composite saw a monthly decline of 4%, while the S&P 500 and Dow Jones Industrial Average shed 1.4% and around 2% respectively.

Despite the broader market downturn, several ETFs managed to deliver impressive gains. From high-yield strategies to China-focused funds, these ETFs stood out as the best performers in February 2025. Let's take a look at the top five.

Also Read: Tech Sector Hammered As Trump’s Tariff Plans Spark Market Selloff: Nvidia, ARM, Super Micro Lead Tech Bloodbath

• Defiance Daily Target 2X Long SMCI ETF SMCX is up 142.76%: Aims daily leveraged investment results of 200% the daily changes in the share price of Super Micro Computer, Inc. SMCI. Super Micro Computer stock surged 43% over the past month, with nearly half of that gain occurring after the company submitted updated and audited financials to the SEC. This move prevented a potential Nasdaq delisting, boosting investor confidence. Additionally, SMCI continued to rally in February as it remained a top pick for investors betting on the artificial intelligence (AI) boom, boosting the ETF.

• YieldMax PLTR Option Income Strategy ETF PLTY is up 20.7%: This ETF, which focuses on generating monthly income by writing call options on Palantir Technologies PLTR, saw a stellar performance in February. While Palantir's stock was volatile, gaining just 1.4% for the month, the high-yielding nature of this ETF helped it surge nearly 30%. With an annual yield of 29.52%, this actively managed fund attracted income-seeking investors.

• Global X Social Media Index ETF SOCL is up 10.45%: The fund provides exposure to social media companies around the world. It follows the Solactive Social Media Total Return Index and charges 0.65% as expense ratio.

• KraneShares Hang Seng TECH Index ETF KTEC is up 25.4%: China ETFs had a strong run in February, and KTEC was no exception. The excitement surrounding Chinese AI startup DeepSeek as well as policy stimulus from the Chinese government fueled the optimism. Despite escalating trade tensions with the U.S., Chinese tech stocks received a boost, pushing KTEC up by over 29%.

• United States Natural Gas Fund LP UNG is up 22%: A brutal Arctic blast in early February led to a surge in natural gas prices, as freezing temperatures boosted heating demand while simultaneously disrupting production. This created a favorable environment for UNG, which jumped around 22% during the month.

Looking Ahead

While February was tough for the broader stock market, these ETFs demonstrated resilience and cashed in on unique opportunities. As investors brace for more economic and geopolitical uncertainty in March, keeping an eye on sector-specific trends and alternative investment strategies could prove beneficial.

Read Next:

• Bitcoin Mining ETFs Under Pressure As Falling Profits Weigh On Miners

Photo: Shutterstock