As the markets continue to evolve, investors are constantly on the lookout for the next big thing. With the rise of exchange-traded funds (ETFs), it’s easier than ever to diversify your portfolio and mitigate risk. But with so many ETFs on the market, it can be overwhelming to know where to start.
In this article, we’ll highlight the top 10 ETFs to consider in 2025. From technology to healthcare, and from growth to value, we’ll cover a wide range of sectors and investment strategies to help you make informed decisions about your portfolio.
1. Vanguard Information Technology ETF (VIT)
Technology is one of the fastest-growing sectors in the economy, and the Vanguard Information Technology ETF is a great way to tap into this trend. With a portfolio of 369 holdings, including top tech stocks like Apple, Microsoft, and Amazon, this ETF is a great option for investors looking to ride the wave.
Diversification: 69%
Expense Ratio: 0.10%
Tracking Error: 0.94%
2. iShares MSCI ACWI ex U.S. ETF (ACWX)
MSCI ACWI ex U.S. is a broad-based index that covers over 90% of the non-U.S. developed and emerging markets. The iShares MSCI ACWI ex U.S. ETF tracks this index, giving investors exposure to some of the fastest-growing economies in the world.
Diversification: 84%
Expense Ratio: 0.45%
Tracking Error: 1.14%
3. Invesco QQQ ETF (QQQ)
The Invesco QQQ ETF tracks the popular Nasdaq-100 Index, which is comprised of the 100 largest and most liquid non-financial stocks listed on the Nasdaq exchange. This ETF is a great way to invest in the next big thing in technology and growth stocks.
Diversification: 13%
Expense Ratio: 0.20%
Tracking Error: 3.55%
4. iShares Core S&P 500 ETF (IVV)
The S&P 500 is one of the most widely followed stock market indexes in the world, and the iShares Core S&P 500 ETF is a great way to invest in this diverse set of stocks. With a portfolio of 500 holdings, this ETF offers broad exposure to the U.S. stock market.
Diversification: 76%
Expense Ratio: 0.03%
Tracking Error: 1.14%
5. SPDR S&P 400 Mid Cap ETF (MDY)
The SPDR S&P 400 Mid Cap ETF tracks the S&P 400 Mid Cap Index, which is a subset of the S&P 500 Index that focuses on mid-capitalization stocks. This ETF is a great way to diversify your portfolio and tap into the growth potential of mid-sized companies.
Diversification: 22%
Expense Ratio: 0.17%
Tracking Error: 0.86%
6. Schwab U.S. Broad Market ETF (SCHB)
The Schwab U.S. Broad Market ETF tracks the Dow Jones US Broad Stock Market Index, which is designed to provide broad exposure to the U.S. stock market. With a portfolio of over 2,500 holdings, this ETF offers a diversified portfolio that’s hard to beat.
Diversification: 95%
Expense Ratio: 0.03%
Tracking Error: 1.14%
7. PowerShares QQQ ETF (QQQQ)
The PowerShares QQQ ETF is a highly traded ETF that tracks the Nasdaq-100 Index. With a portfolio of 100 holdings, this ETF offers a diversified set of growth-oriented stocks that are often the next big thing.
Diversification: 13%
Expense Ratio: 0.20%
Tracking Error: 3.55%
8. iShares Core U.S. Aggregate Bond ETF (AGG)
Fixed income is an essential component of any investment portfolio, and the iShares Core U.S. Aggregate Bond ETF is a great way to tap into this market. With a portfolio of over 8,500 bonds, this ETF offers broad exposure to the U.S. fixed income market.
Diversification: 56%
Expense Ratio: 0.04%
Tracking Error: 0.29%
9. Invesco DB Commodity Index Tracking Fund (DBC)
Commodities are a great way to diversify your portfolio and hedge against inflation, and the Invesco DB Commodity Index Tracking Fund is a great way to invest in this market. With a portfolio of 14 commodities, this ETF offers a diversified set of exposure to the markets.
Diversification: 21%
Expense Ratio: 0.85%
Tracking Error: 2.18%
10. VanEck Vectors Environmental Services ETF (EVX)
The VanEck Vectors Environmental Services ETF is a great way to invest in the rapidly growing field of sustainable energy and infrastructure. With a portfolio of 35 holdings, this ETF offers a diversified set of growth-oriented stocks that are shaping the future of our planet.
Diversification: 22%
Expense Ratio: 0.47%
Tracking Error: 2.56%
In conclusion, these 10 ETFs are just a few of the many options available to investors in 2025. From technology to healthcare, and from growth to value, there’s an ETF out there to suit every investment strategy.
As you consider adding these ETFs to your portfolio, keep in mind the following tips:
- Diversification is key: With so many ETFs to choose from, it’s essential to diversify your portfolio and spread your risk across multiple sectors and asset classes.
- Expense ratio matters: The lower the expense ratio, the more of your investment goes into the actual investment.
- Tracking error: Look for ETFs with low tracking error, which indicates how closely the ETF follows its underlying index.
- Tax efficiency: Consider the potential tax implications of buying and selling ETFs, and choose the most tax-efficient option for your portfolio.
By following these tips and incorporating one or more of these ETFs into your portfolio, you can make informed decisions about your investment strategy and ride the wave of market trends in 2025.