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Top 10 Performing Funds – May 2025
Climbing back from their 15% drop since the start of the year that was reached at the market’s close on April 8th, stocks that make up the S&P 500 Index rose 6.1% in May—much of it realized during the first 12 trading days. This reversal led to a year-to-date gain of 1.6%, bringing the index…
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Sustainable Bottom Line: The top 10 performing funds in May were dominated by renewable energy investment funds, a segment exposed to higher levels of volatility.
Market performance in May: The S&P 500 Index rose 6.1%, Nasdaq Composite added nearly 10% while foreign stocks, which had been outperforming, gained 4.6%
Climbing back from their 15% drop since the start of the year that was reached at the market’s close on April 8th, stocks that make up the S&P 500 Index rose 6.1% in May—much of it realized during the first 12 trading days. This reversal led to a year-to-date gain of 1.6%, bringing the index to within 3.8% of the record closing high achieved in mid-February. The Dow Jones Industrial Average was up 4% while the Nasdaq Composite added nearly 10%.
The performance of foreign stocks as measured by the MSCI ACWI ex USA Index, which had been outperforming tariff-battered U.S., stocks, lagged the S&P 500 with its gain of 4.58%. On the back of a 24-basis point decline in the yield offered by 10-year Treasuries, U.S. intermediate investment-grade bonds, based on the Bloomberg US Aggregate Bond Index, dropped 0.72%.
Against this backdrop, focused long-term sustainable mutual funds and ETFs added an average of 4.20% and 3.56% year-to-date. U.S. equity funds gained an average of 6.20% but these investment vehicles are still in negative territory year-to-date at -0.20%. International equity funds underperformed U.S. stocks with a gain of 5.40% but remain ahead on a year to-date basis with an average gain of 8.58%. Taxable fixed income funds, led by high yield funds, eked out a positive 0.04% gain in May and recorded a 2.55% average gain since the start of the year.
The top ten performing funds in May recorded an average increase of 15.25% and were dominated by thematic mutual funds and ETFs focused on the renewable energy sector
The top ten performing funds in May, which recorded an average increase of 15.25% versus a gain of 4.20% posted by the universe of 1,285 focused sustainable long-term funds/share classes, were dominated by thematic mutual funds and ETFs focused on the renewable energy sector. The designated eight thematic renewable energy-oriented funds, including four that have been assigned SRA Fund Quality Ratings*, posted a slightly higher 15.8% average return in May. Results ranged from a low of 11.5% attributable to the Firsthand Alternative Energy Fund to a high of 35.55% delivered by the leveraged and highly volatile Direxion Daily Electronic and Autonomous Vehicles Bull 2X ETF. While receiving a boost due to May’s performance, the same eight funds still posted an average decline of 12.5% (-18.7% excluding Direxion) over the trailing twelve months. These results fall in line with the gain of 7.8% in May and a decline of 13.43% over the trailing twelve months registered by the S&P Global Clean Energy Transition Index, a benchmark designed to measure the performance of companies in global clean energy-related businesses from both developed and emerging markets and reflect the volatility or risk that investors should expect from this sector even as long-term trends are positive.
Interest rates, policy uncertainties, such as changes in government policies and regulations under the Trump administration and their impacts on the development and profitability of renewable energy projects, had a negative impact on the clean energy sector over the trailing twelve months. In fact, several solar energy companies either filed for bankruptcy last year or were facing financial distress. In May, however, renewable energy stocks ticked higher as investors seemed to respond to news of increasing investments in clean energy (as reported by IEA, energy sector investments in 2025 are set to rise to $3.3 trillion), a positive shift in sentiment regarding the impact that the House Republican tax reconciliation bill will have on the renewable energy sector as well as positive company specific performance results, including, for example, gains in May by First Solar, Inc. (25%) and Tesla Motors, Inc. (22.3%) (prior to the dust up between Trump and Musk), two companies whose stock was a top holding in five of the eight renewable energy funds that made up the roster of the top ten performers in May. A non-renewable energy-focused fund in the top 10, the Alger Responsible Investing Fund, benefited from significant holdings in companies such as Microsoft, Nvidia, Amazon and Apple, to mention just a few.
Total return results posted by the top 10 performing funds in May
While the total return results posted by the top 10 performing funds in May were positive, their average negative 7.13% trailing 12-months results were not yet offset.
Total return results posted by the top 10 performing funds in May 2025 and Y-T-D
Notes of Explanation: Funds are displayed in order of their May 2025 total return performance. In the case of mutual funds with multiple share classes only the best performing share class is displayed (for example, Victory Global Energy Transition Fund consists of three share classes, A, C and Y, but only the best performing Y share class is included above). Sources: Morningstar, S&P Global and Sustainable Research and Analysis LLC.
Top 10 Performing Funds-A summary
1. Direxion Daily Electric & Autonomous Vehicles Bull 2X ETF (EVAV)
SRA Fund Quality Rating: NA
Strategy: Seeks daily investment results of 200% of the performance of the Indxx US Electric and Autonomous Vehicles Index, focusing on companies involved in the development of electric and autonomous vehicles.
Investment Adviser: Direxion Fund Advisors
Size: $3.8 million
Expense ratio: 0.98%
2. Victory Global Energy Transition Fund Class Y (RSNYX)
SRA Fund Quality Rating: B
Strategy: Invests in companies positioned to benefit from the global transition to lower-carbon energy sources, including renewable energy, electrification, and energy efficiency.
Investment Adviser: Victory Capital Management Inc./SailingStone Capital Partners
Size: $343.3 million
Expense Ratio: 1.15%
3. Invesco WilderHill Clean Energy ETF (PBW)
SRA Fund Quality Rating: C
Strategy: Tracks the WilderHill Clean Energy Index, focusing on U.S. companies engaged in the advancement of cleaner energy and conservation.
Investment Adviser: Invesco Capital Management LLC
Size: $292.9 million
Expense ratio: 0.65%
4. TCW Transform Systems ETF (PWRD)
SRA Fund Quality Rating: NA
Strategy: Actively managed ETF investing in companies driving or benefiting from the transformation of systems toward sustainability, including energy, transportation, and industrial processes.
Investment Adviser: TCW Investment Management Co.
Size: $441.1 million
Expense ratio: 0.75%
5. Invesco Solar ETF (TAN)
SRA Fund Quality Rating: E
Strategy: Tracks the MAC Global Solar Energy Index, focusing on companies in the solar energy industry, including manufacturers, installers, and equipment providers.
Investment Adviser: Invesco Capital Management LLC
Size: $595.0 million
Expense ratio: 0.71%
6. SPDR Kensho Clean Power ETF (CNRG)
SRA Fund Quality Rating: B
Strategy: Tracks the S&P Kensho Clean Power Index, investing in companies involved in clean energy generation and related technologies.
Investment Adviser: State Street Globa Advisors
Size: $114.8 million
Expense ratio: 0.45%
7. ProShares S&P Kensho Cleantech ETF (CTEX)
SRA Fund Quality Rating: NA
Strategy: Tracks the S&P Kensho Cleantech Index, focusing on companies providing technologies for clean energy generation and storage.
Investment Adviser: ProShare Advisors
Size: $1.4 million
Expense ratio: 0.58%
8. Global X CleanTech ETF (CTEC)
SRA Fund Quality Rating: NA
Strategy: Invests in companies involved in the development and production of clean technologies, including renewable energy, energy storage, and energy efficiency.
Investment Adviser: Global X Management Company
Size: $19 million
Expense ratio: 0.5%
9. Alger Responsible Investing Fund Class A (ALRAX)
SRA Fund Quality Rating: NA
Strategy: Seeks long-term capital appreciation by investing in companies that demonstrate positive ESG characteristics, integrating ESG analysis into the investment process.
Investment Adviser: Fred Alger Management
Size: $85.7 million
Expense ratio: 1.09%
10. Firsthand Alternative Energy Fund (ALTEX)
SRA Fund Quality Rating: C
Strategy: Invests in companies that are involved in alternative energy and energy technology sectors, including solar, wind, and energy efficiency.
Investment Adviser: Firsthand Capital Management, LLC.
Size: $7.6 million
Expense ratio: 1.99%
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