Highest Sharpe Ratio ETFs
The ETFs that earned the most return per unit of risk over the past year, updated every trading day.
As of the Oct 23, 2026 close, BWET (Breakwave Tanker Shipping ETF) has the highest Sharpe ratio of the 727 ETFs ranked here, at 3.95. Large Cap Value is the most common category in the top 50, with 18 funds.
| # | ETF | Category | Sharpe | 1Y Return | Volatility | Max DD |
|---|---|---|---|---|---|---|
| 1 | BWETBreakwave Tanker Shipping ETF | Commodities | 3.95 | +5279.33% | 118.40% | -41.22% |
| 2 | CRAKVanEck Oil Refiners ETF | Energy | 2.39 | +68.68% | 21.01% | -13.59% |
| 3 | SCHDSchwab U.S. Dividend Equity ETF | Dividend | 2.33 | +35.06% | 11.31% | -6.88% |
| 4 | DIVBiShares Core Dividend ETF | Dividend | 2.26 | +39.26% | 13.13% | -6.85% |
| 5 | VFLOVictoryShares Free Cash Flow ETF | Large Cap Value | 2.16 | +44.96% | 15.74% | -8.85% |
| 6 | LVHIFranklin International Low Volatility High Dividend Index ETF | Dividend | 2.09 | +26.80% | 9.47% | -6.08% |
| 7 | IXCiShares Global Energy ETF | Energy | 2.09 | +57.51% | 20.72% | -15.36% |
| 8 | IWXiShares Russell Top 200 Value ETF | Large Cap Value | 2.08 | +29.68% | 10.66% | -6.59% |
| 9 | XLEEnergy Select Sector SPDR Fund | Energy | 2.06 | +60.29% | 22.06% | -14.98% |
| 10 | PDBCInvesco Optimum Yield Diversified Commodity Strategy No K-1 ETF | Commodities | 2.05 | +55.59% | 20.55% | -16.55% |
| 11 | IYEiShares U.S. Energy ETF | Energy | 2.03 | +57.84% | 21.53% | -14.54% |
| 12 | DBCInvesco DB Commodity Index Tracking Fund | Commodities | 2.01 | +54.33% | 20.51% | -16.54% |
| 13 | FELVFidelity Enhanced Large Cap Value ETF | Large Cap Value | 2.00 | +28.94% | 10.80% | -6.85% |
| 14 | FENYFidelity MSCI Energy Index ETF | Energy | 2.00 | +57.77% | 21.90% | -14.96% |
| 15 | BNOUnited States Brent Oil Fund LP | Oil | 1.99 | +138.78% | 47.34% | -34.46% |
| 16 | VDEVanguard Energy ETF | Energy | 1.99 | +57.66% | 21.95% | -15.04% |
| 17 | VFMFVanguard U.S. Multifactor ETF | Mid Cap Value | 1.98 | +31.82% | 12.12% | -7.08% |
| 18 | HGERHarbor Commodity All-Weather Strategy ETF | Commodities | 1.98 | +47.40% | 18.29% | -14.04% |
| 19 | VLUEiShares MSCI USA Value Factor ETF | Large Cap Value | 1.98 | +53.48% | 20.56% | -9.04% |
| 20 | DFLVDimensional US Large Cap Value ETF | Large Cap Value | 1.96 | +27.88% | 10.62% | -5.48% |
| 21 | IEOiShares U.S. Oil & Gas Exploration & Production ETF | Energy | 1.95 | +69.39% | 26.70% | -16.32% |
| 22 | AVLVAvantis U.S. Large Cap Value ETF | Large Cap Value | 1.91 | +29.97% | 11.80% | -6.39% |
| 23 | HDViShares Core High Dividend ETF | Dividend | 1.89 | +29.11% | 11.53% | -6.40% |
| 24 | VONVVanguard Russell 1000 Value ETF | Large Cap Value | 1.87 | +27.66% | 11.03% | -6.81% |
| 25 | IWDiShares Russell 1000 Value ETF | Large Cap Value | 1.87 | +27.47% | 10.97% | -6.79% |
| 26 | USOUnited States Oil Fund | Oil | 1.86 | +131.31% | 49.45% | -32.49% |
| 27 | FXNFirst Trust Energy AlphaDEX Fund | Energy | 1.85 | +56.44% | 23.31% | -13.41% |
| 28 | PWVInvesco Large Cap Value ETF | Large Cap Value | 1.85 | +25.15% | 10.02% | -7.94% |
| 29 | FNDXSchwab Fundamental U.S. Large Company ETF | Large Cap Value | 1.85 | +24.73% | 9.83% | -6.06% |
| 30 | GSGiShares S&P GSCI Commodity-Indexed Trust | Commodities | 1.85 | +61.53% | 25.41% | -18.81% |
| 31 | FTGCFirst Trust Global Tactical Commodity Strategy Fund | Commodities | 1.84 | +38.09% | 15.85% | -12.34% |
| 32 | PVALPutnam Focused Large Cap Value ETF | Large Cap Value | 1.84 | +26.69% | 10.80% | -7.22% |
| 33 | DFUVDimensional US Marketwide Value ETF | Large Cap Value | 1.80 | +27.23% | 11.27% | -6.01% |
| 34 | PRFInvesco RAFI US 1000 ETF | Large Cap Value | 1.75 | +24.68% | 10.40% | -6.59% |
| 35 | ZCSHThe Zcash ETF | Cryptocurrency | 1.74 | +365.79% | 153.60% | -69.62% |
| 36 | FDLFirst Trust Morningstar Dividend Leaders Index Fund | Dividend | 1.71 | +27.83% | 12.26% | -7.19% |
| 37 | MGVVanguard Morningstar Mega Cap Value ETF | Large Cap Value | 1.66 | +23.03% | 10.11% | -6.42% |
| 38 | CALFPacer US Small Cap Cash Cows ETF | Small Cap Value | 1.66 | +34.18% | 15.80% | -7.90% |
| 39 | CLSEConvergence Long/Short Equity ETF | Alternatives | 1.65 | +28.92% | 13.28% | -4.85% |
| 40 | BCIabrdn Bloomberg All Commodity Strategy K-1 Free ETF | Commodities | 1.65 | +38.09% | 17.93% | -14.82% |
| 41 | VTVVanguard Value ETF | Large Cap Value | 1.64 | +22.67% | 10.07% | -6.35% |
| 42 | FLTWFranklin FTSE Taiwan ETF | Emerging Markets | 1.64 | +69.79% | 33.00% | -21.34% |
| 43 | IHEiShares U.S. Pharmaceuticals ETF | Health Care | 1.64 | +39.16% | 18.60% | -9.74% |
| 44 | EWTiShares MSCI Taiwan ETF | Emerging Markets | 1.63 | +66.98% | 31.88% | -19.83% |
| 45 | RWLInvesco S&P 500 Revenue ETF | Large Cap Value | 1.61 | +21.82% | 9.81% | -6.64% |
| 46 | XOPState Street SPDR S&P Oil & Gas Exploration & Production ETF | Energy | 1.61 | +58.72% | 28.57% | -18.50% |
| 47 | COWZPacer US Cash Cows 100 ETF | Large Cap Value | 1.54 | +25.28% | 12.26% | -7.57% |
| 48 | GCOWPacer Global Cash Cows Dividend ETF | Dividend | 1.54 | +23.31% | 11.18% | -7.83% |
| 49 | FBTFirst Trust NYSE Arca Biotechnology Index Fund | Health Care | 1.52 | +42.19% | 21.91% | -14.26% |
| 50 | BKDVBNY Mellon Dynamic Value ETF | Large Cap Value | 1.51 | +23.84% | 11.68% | -6.65% |
How the Ranking Works
Each fund's Sharpe ratio is its annualized return over the past year, minus a 4.5% risk-free rate, divided by the annualized volatility of its daily returns. Leveraged and inverse funds are left out, since their daily reset makes the ratio misleading, and so are funds with less than a year of history.
A high Sharpe ratio over one year often reflects one strong market, not a lasting edge. Check the Sortino ratio and the maximum drawdown before treating a fund as the safer bet.
Related Guides
Compare Any ETF's Risk-Adjusted Returns
Redstone calculates the Sharpe and Sortino ratios, drawdowns and volatility for every ETF, stock and portfolio it tracks.