Stock exchange-traded funds, or equity ETFs, are often low-cost, tax-efficient instruments for investors to track popular indexes or leverage experienced manager choices to beat the market. The best ones serve as low-cost building blocks in a portfolio, and unlike open-end mutual funds, all ETFs are traded throughout the day on an exchange.
In October 2025, the top-performing stock ETFs included mid-cap growth funds ARK Space Exploration & Innovation ETF ARKX and Innovator IBD 50 ETF FFTY. Data in this article is sourced from Morningstar Direct.
Screening for the Best-Performing ETFs
When evaluating ETFs, investors should focus on long-term returns across multiple years and market cycles. However, short-term returns can provide valuable information about biases within strategies.
To find the month’s best-performing stock ETFs, we screened the ones in the Morningstar US equity category that trade within the United States. We excluded exchange-traded notes and ETFs with less than $100 million in total assets. Within our list, six funds fell into the large growth category, where the average name rose 2.92% in October.
The 10 Best-Performing ETFs for October 2025
- ARK Space Exploration & Innovation ETF ARKX
- Innovator IBD 50 ETF FFTY
- ARS Focused Opportunities Strategy ETF AFOS
- Direxion HCM Tactical Enhanced US Equity Strategy ETF HCMT
- American Century Focused Dynamic Growth ETF FDG
- First Trust Innovation Leaders ETF ILDR
- HCM Defender 100 Index ETF QQH
- VanEck Social Sentiment ETF BUZZ
- Invesco ESG NASDAQ 100 ETF QQMG
- iShares MSCI USA Quality GARP ETF GARP
Metrics for the Best-Performing Stock ETFs
ARK Space Exploration & Innovation ETF
The $527.6 million ARK Space Exploration & Innovation ETF was the best-performing ETF in October, with a 9.88% gain. The actively managed fund beat the 0.57% gain on the average fund in Morningstar’s mid-cap growth category for the month. Over the last year, the fund has gained 93.19%, outperforming the 13.85% gain on funds in its category, placing it in the 1st percentile for the period.
The ARK Space Exploration & Innovation ETF has a Negative Medalist Rating, meaning our analysts expect it to be one of the worst performers within its category and think it is unlikely to deliver positive returns after fees.
Innovator IBD 50 ETF
- Morningstar Rating: ★
- Expense Ratio: 0.8%
- Morningstar Category: Mid-Cap Growth
The $113.3 million Innovator IBD 50 ETF ranked second for the month, returning 8.68%. The Innovator ETF, which is passively managed, beat the 0.57% gain on the average mid-cap growth fund. Over the past year, the fund has risen 53.85%, outperforming the 13.85% gain on funds in its category, placing it in the 2nd percentile for the period.
The Negative-rated Innovator IBD 50 ETF launched in April 2015.
ARS Focused Opportunities Strategy ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.45%
- Morningstar Category: Large Value
The third-best-performing ETF in October was the $198.6 million ARS Focused Opportunities Strategy ETF. The actively managed ETF returned 7.10%, outperforming the average large value fund, which dropped 0.23%. The fund was first launched in June 2025, and as a result, it does not have a one-year record.
The ARS Focused Opportunities Strategy ETF has not yet been awarded a Medalist Rating.
Direxion HCM Tactical Enhanced US Equity Strategy ETF
- Morningstar Rating: N/A
- Expense Ratio: 1.17%
- Morningstar Category: Large Blend
The $606.2 million Direxion HCM Tactical Enhanced US Equity Strategy ETF was the fourth-best-performing ETF in October, with a 6.92% gain. The actively managed Direxion ETF beat the 1.55% gain on the average fund in Morningstar’s large blend category for the month. Over the last year, the fund has gained 19.49%, outperforming the 17.48% gain on funds in its category, placing it in the 45th percentile for the period.
The Neutral-rated Direxion HCM Tactical Enhanced US Equity Strategy ETF launched in June 2023.
American Century Focused Dynamic Growth ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.45%
- Morningstar Category: Large Growth
The $386.1 million American Century Focused Dynamic Growth ETF ranked fifth for the month, returning 6.79%. The ETF, which is actively managed, beat the 2.92% gain on the average large growth fund. Over the past year, the fund has risen 38.16%, outperforming the 25.65% gain on funds in its category, placing it in the 8th percentile for the period.
The Neutral-rated American Century Focused Dynamic Growth ETF launched in March 2020.
First Trust Innovation Leaders ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.75%
- Morningstar Category: Large Growth
The $206.2 million First Trust Innovation Leaders ETF was the sixth-best-performing ETF in October, with a 6.13% gain. The actively managed First Trust ETF beat the 2.92% gain on the average fund in Morningstar’s large growth category for the month. Over the last year, the fund has gained 39.56%, outperforming the 25.65% gain on funds in its category, placing it in the 7th percentile for the period.
The Neutral-rated First Trust Innovation Leaders ETF launched in May 2021.
HCM Defender 100 Index ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 1.02%
- Morningstar Category: Large Growth
The $692.8 million HCM Defender 100 Index ETF ranked seventh for the month, returning 6.06%. The Howard Capital Management ETF, which is passively managed, beat the 2.92% gain on the average large growth fund. Over the past year, the fund has risen 31.02%, outperforming the 25.65% gain on funds in its category, placing it in the 18th percentile for the period.
The Bronze-rated HCM Defender 100 Index ETF launched in October 2019.
VanEck Social Sentiment ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.76%
- Morningstar Category: Large Growth
The $144.6 million VanEck Social Sentiment ETF was the eighth-best-performing ETF in October, with a 6.00% gain. The passively managed ETF beat the 2.92% gain on the average fund in Morningstar’s large growth category for the month. Over the last year, the fund has gained 75.88%, outperforming the 25.65% gain on funds in its category, placing it in the 1st percentile for the period.
The Bronze-rated VanEck Social Sentiment ETF launched in March 2021.
Invesco ESG NASDAQ 100 ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.2%
- Morningstar Category: Large Growth
The ninth-best-performing ETF in October was the $113.6 million Invesco ESG NASDAQ 100 ETF. The passively managed Invesco ETF returned 5.25%, outperforming the average large growth fund, which gained 2.92%. Over the last year, the fund has climbed 31.89%, outperforming the 25.65% gain on funds in its category, placing it in the 15th percentile for the period.
The Silver-rated Invesco ESG NASDAQ 100 ETF launched in October 2021.
iShares MSCI USA Quality GARP ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.15%
- Morningstar Category: Large Growth
The $1.2 billion iShares MSCI USA Quality GARP ETF was the tenth best-performing ETF in October, with a 4.78% gain. The passively managed ETF beat the 2.92% gain on the average fund in Morningstar’s large growth category for the month. Over the last year, the fund has gained 32.13%, outperforming the 25.65% gain on funds in its category, placing it in the 14th percentile for the period.
The Gold-rated iShares MSCI USA Quality GARP ETF launched in January 2020.
What Are ETFs?
Exchange-traded funds are investments that trade throughout the day on stock exchanges, much like individual stocks. They differ from traditional mutual funds—known as open-end funds—which can only be bought or sold at a single price each day. Historically, ETFs have tracked indexes, but in recent years, more ETFs have been actively managed. ETFs cover a range of asset classes, including stocks, bonds, commodities, and most recently cryptocurrency.
ETFs offer investors an efficient way to gain exposure to the markets, often with low fees and an ease of buying and selling. They also generally offer higher tax efficiency than open-end funds.
How to Find Top ETFs for the Long Term
ETFs are often equated with low-cost indexing. However, the ETF marketplace has grown increasingly complicated. Some ETFs track a very narrow part of the market or pursue specific themes. Some ETFs invest based on a particular factor or a combination of them. And now there are actively managed ETFs.
Use these Morningstar resources to help find the best ETFs for the long term:
- Learn about the types of exchange-traded funds, their costs, and how to invest in them by reading Morningstar’s Guide to ETF Investing.
- Find the highest-rated ETFs across all investment categories in The Best ETFs and How They Fit in Your Portfolio.
- Review Morningstar director of personal finance Christine Benz’s suggested ETF portfolios for those saving for or already in retirement, including Tax-Efficient Retirement-Saver Portfolios for ETF Investors, Tax-Sheltered Retirement-Saver Portfolios for ETF Investors, ESG Tax-Sheltered Retirement-Saver Portfolios for ETF Investors, Tax-Sheltered Retirement-Bucket Portfolios for ETF Investors, and Tax-Sheltered ESG Retirement-Bucket Portfolios for ETF Investors.
- Research ETFs based on your personal selection criteria by using our Morningstar Investor Screener. The tool, which is available to Morningstar Investor members, allows investors to screen ETFs based on various criteria, including asset class, Morningstar Category, Medalist Rating, and fee level.
- Visit Morningstar’s ETF page for the latest articles and videos from our ETF specialists.
This article was generated with the help of automation and reviewed by Morningstar editors.
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