Investors seeking high returns may consider two exchange-traded funds (ETFs) that have demonstrated impressive performance. The L&G Gold Mining ETF and the iShares Digital Security ETF have achieved an average annual return of 16.2% over the past five years, positioning them as noteworthy options for those looking to diversify their portfolios.
Gold Mining ETF: Riding the Bull Market
The L&G Gold Mining ETF (LSE: AUCP) has capitalized on a surging gold market, delivering an average yearly return of 19.1% during the same period. The performance of this ETF reflects a multi-year bull run in gold prices, which has garnered extensive media attention in 2025 as the metal reaches record highs. This fund benefits from a leveraged effect, meaning it tends to rise more sharply than gold itself.
With investments in 36 different gold mining companies, including major players such as Newmont, AngloGold Ashanti, and Anglo-Eagle, the ETF minimizes risks associated with production disruptions. Analysts suggest that factors such as a weakening US dollar, interest rate cuts, and geopolitical tensions could sustain the upward trend in gold prices.
Cybersecurity ETF: A Growing Market
As concerns over an AI-driven bubble loom over technology stocks, the iShares Digital Security ETF (LSE: LOCK) appears to be a resilient choice. Since its inception in November 2020, this ETF has recorded an average yearly return of 13.2%. The frequency and severity of cyberattacks are increasing, exemplified by the recent attack on Jaguar Land Rover, which had significant repercussions on the quarterly GDP.
The urgency for robust cybersecurity measures is underscored by predictions from Global Market Insights, which estimates that the global cybersecurity market will exceed $55 billion in size over the next decade. The iShares Digital Security ETF holds a diversified portfolio of over 100 tech stocks, featuring industry leaders such as CrowdStrike, Cloudflare, and Palo Alto Networks. This diversification mitigates the risks associated with a severe failure of any single security provider.
While the cyclical nature of information technology earnings means that this ETF could face challenges during economic downturns, its long-term outlook remains positive.
Investors looking to enhance their portfolios may find these two ETFs appealing, given their strong historical performance and the potential for continued returns in their respective markets.
