Top 5 Performing ETFs of 2025: Motilal Oswal Defence ETF Leads with 35% Return

The Indian ETF market has seen notable developments in 2025, especially with sector-focused and international indices gaining investor attention. While this article does not offer investment advice, it provides an overview of the best-performing exchange-traded funds based on year-to-date returns, asset size, and expense ratios.

Here Are the Top 5 Performing ETFs of 2025

Note: Performance as of June 13, 2025. 

Motilal Oswal Nifty India Defence ETF

With a year-to-date return of 34.65% in 2025, Motilal Oswal Nifty India Defence ETF has emerged as the strongest performer. It manages an asset size of ₹462.6 crore and has a low expense ratio of 0.41%. The fund aims to closely replicate the performance of the Nifty India Defence Total Return Index, tracking companies that contribute significantly to India's defence sector.

Groww Nifty India Defence ETF

Groww Nifty India Defence ETF has posted a return of 34.36% in 2025, closely following its Motilal Oswal counterpart. It has an asset size of ₹182.6 crore and an expense ratio of 0.43%. The scheme is structured to generate long-term capital appreciation by investing in securities included in the Nifty India Defence Index, while attempting to minimise tracking error.

Nippon India ETF Hang Seng BeES

The Nippon India Hang Seng BeES has delivered a return of 20.39% this year. With assets under management of ₹865.4 crore, it is the largest among the 5 in terms of fund size. The investment objective of the Scheme is to provide returns that, before expenses, closely correspond to the total returns of securities as represented by the Hang Seng Index of Hang Seng Data Services Limited, by investing in the securities in the same proportion as in the Index.

ICICI Prudential Nifty Financial Services Ex-Bank ETF

ICICI Prudential Nifty Financial Services Ex-Bank ETF focuses on financial services excluding the banking sector and has delivered a 17.62% return in 2025, so far. The fund has an asset base of ₹140.9 crore and maintains a low expense ratio of 0.2%. 

Mirae Asset Hang Seng TECH ETF

Rounding off the list is the Mirae Asset Hang Seng TECH ETF with a 17.12% return this year. It manages ₹365.2 crore in assets and carries an expense ratio of 0.56%. This ETF aims to track the Hang Seng TECH Total Return Index, which includes major technology players listed in Hong Kong, and is subject to both index tracking and currency exchange fluctuations.

Read More: Silver ETFs See 126% AUM Growth in One Year!

Conclusion 

These top-performing ETFs highlight the growing appeal of thematic and global investing. Their returns reflect the momentum seen in specific sectors and regions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.