Investing

Best ETF Investments in 2025: Top Picks, Smart Strategies & How to Start Today

Discover the best ETF investments in 2025 for U.S. investors. Explore top-performing ETFs, expert tips, and how to build a diversified portfolio with confidence

Thushan Weerakoon

May 19, 2025 — 3 min read

Best ETF investments | Image Credit : Pexels

Exchange-Traded Funds (ETFs) are the easiest and smartest method for investing in the stock market in 2025. Whether you are a beginner or attempting to supplement your portfolio, ETFs offer low costs, instant diversification, and flexibility a boon to all types of investors.

Allow us to break down the best ETF investments in 2025, how they work, and how you can start investing today.

What Are ETFs and Why They're Popular

An ETF is an investment fund that holds a basket of assets like stocks, bonds, or commodities. ETFs are traded on stock exchanges and trade like single stocks, making it easy to buy and sell them.

Why Investors Love ETFs:

Diversification: One ETF can hold dozens or hundreds of companies
Lower Fees: Most ETFs are less expensive than conventional mutual funds
Transparency: Holdings are revealed daily
Liquidity: Buy and sell anytime the market is open
Flexibility: Suitable for long-term growth and short-term strategies

Top Performing ETFs in 2025

A few of the best-performing ETFs of 2025, based on expert consensus and recent performance, include:

Innovation & Growth ETFs

ARK Innovation ETF (ARKK): Invests in technologies of the future like AI, genomics, and robotics.
ARK Space Exploration ETF (ARKX): Seeks to target companies involved in space travel, satellites, and aerospace technology.
Alpha Architect US Quantitative Momentum ETF (QMOM): Uses momentum investing strategies to select top-performing U.S. equities.

U.S. Market ETFs

Vanguard S&P 500 ETF (VOO): Offers exposure to 500 of the largest U.S. companies. Great for stability and growth.
Davis Select US Equity ETF (DUSA): Invests in high-quality U.S. companies with growth potential.

International & Commodity ETFs

Vanguard FTSE Developed Markets ETF (VEA): Diversifies your portfolio with equities from Europe, Japan, and other developed markets.
iShares Physical Gold ETC (SGLN): Tracks the price of gold—a solid choice for hedging against market volatility and inflation.

Sustainable & ESG ETFs

Putnam Sustainable Future ETF (PFUT): Invests in companies with positive environmental, social, and governance characteristics.

How to Invest in ETFs in 2025

Investing in ETFs is easier than it has ever been. Follow these simple steps:

Open a Brokerage Account: Opt for providers like Vanguard, Fidelity, or Charles Schwab.
Research ETF Options: Compare ETFs on platforms like Morningstar, justETF, or Yahoo Finance.
Decide on Your Allocation: Based on your goal—growth, income, diversificationselect a mix of ETFs.
Buy the ETFs: Place a buy order through your brokerage account during trading hours.
Review Regularly: Monitor your portfolio and rebalance if certain ETFs grow too large.

Frequently Asked Questions (FAQs)

What are the best ETFs to invest in 2025?
Top picks include ARKK for innovation, VOO for U.S. exposure, VEA for international diversification, and PFUT for ESG investing.
Are ETFs better than individual stocks?
For beginners, yes. ETFs offer instant diversification and lower risk compared to picking individual stocks.
Can I lose money with ETFs?
Yes. While diversified, ETFs still carry market risk. However, they're generally safer than single stocks.
How much money do I need to start?
Some ETFs trade for under $100, and many brokerages offer fractional shares, allowing you to start with as little as $5 or $10.
How often should I rebalance my ETF portfolio?
Review your portfolio every 6 to 12 months or when your investment goals or market conditions change.
Are ETFs good for retirement investing?
Absolutely. ETFs like VOO and VEA are perfect for long-term retirement strategies thanks to their low fees and strong historical performance.