7 Best ETFs to Buy Now in 2025
7 Best ETFs to Buy Now in 2025
Generally, there are two ways to define the kinds of investments that are rotating into favor on Wall Street. One strategy is to favor "risk on" investments that are a bit more uncertain but have the potential to cash in significantly if things go well. The other is to favor "risk off" investments that are designed to weather potential economic disruptions and hang tough amid periods of stock market volatility.
With talk of dramatic policy shifts in Washington, investors are favoring "risk off" trades. These include proven sectors, large corporations and dividend-paying stocks that hang tough during market declines. That's not to say there aren't a few "risk on" pockets out there, such as artificial intelligence, that are still seeing attention on Wall Street. But generally, the best ETFs to buy now tend to favor the defensive side of things.
The following exchange-traded funds are among the best based on market dynamics:
ETF Expense Ratio
Health Care Select Sector SPDR Fund (ticker: XLV) 0.09%
iShares MSCI Poland ETF (EPOL) 0.60%
VanEck Gold Miners ETF (GDX) 0.51%
ARK Fintech Innovation ETF (ARKF) 0.75%
VanEck Uranium and Nuclear ETF (NLR) 0.61%
Alerian MLP ETF (AMLP) 0.85%
iShares MSCI USA Min Vol Factor ETF (USMV) 0.15%
With talk of dramatic policy shifts in Washington, investors are favoring "risk off" trades. These include proven sectors, large corporations and dividend-paying stocks that hang tough during market declines. That's not to say there aren't a few "risk on" pockets out there, such as artificial intelligence, that are still seeing attention on Wall Street. But generally, the best ETFs to buy now tend to favor the defensive side of things.
The following exchange-traded funds are among the best based on market dynamics:
ETF Expense Ratio
Health Care Select Sector SPDR Fund (ticker: XLV) 0.09%
iShares MSCI Poland ETF (EPOL) 0.60%
VanEck Gold Miners ETF (GDX) 0.51%
ARK Fintech Innovation ETF (ARKF) 0.75%
VanEck Uranium and Nuclear ETF (NLR) 0.61%
Alerian MLP ETF (AMLP) 0.85%
iShares MSCI USA Min Vol Factor ETF (USMV) 0.15%
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Re: 7 Best ETFs to Buy Now in 2025
Health Care Select Sector SPDR Fund (XLV)
Expense ratio: 0.09%
One of the rare certainties in life is that we will all need greater care as we get older and our bodies break down. As demographics shift across the U.S., with the number of Americans 65 and older projected to increase to 82 million by 2050 from 58 million in 2022, there are plenty of patients generating reliable revenue for health care companies these days. Though there is uncertainty around trade policies and broader economic growth in the coming years, XLV provides a bit of stability in investor portfolios. As the largest dedicated health care sector fund out there, it offers diversified exposure to 60 dominant stocks, including Eli Lilly and Co. (LLY), UnitedHealth Group Inc. (UNH) and Johnson & Johnson (JNJ).
Expense ratio: 0.09%
One of the rare certainties in life is that we will all need greater care as we get older and our bodies break down. As demographics shift across the U.S., with the number of Americans 65 and older projected to increase to 82 million by 2050 from 58 million in 2022, there are plenty of patients generating reliable revenue for health care companies these days. Though there is uncertainty around trade policies and broader economic growth in the coming years, XLV provides a bit of stability in investor portfolios. As the largest dedicated health care sector fund out there, it offers diversified exposure to 60 dominant stocks, including Eli Lilly and Co. (LLY), UnitedHealth Group Inc. (UNH) and Johnson & Johnson (JNJ).
Re: 7 Best ETFs to Buy Now in 2025
iShares MSCI Poland ETF (EPOL)
Expense ratio: 0.6%
After the Russian invasion of Ukraine in 2022, much of Europe's economy was thrown into turmoil – but Central and Eastern Europe, in particular, were among the hardest hit. Since then, there has been improvement for these countries coupled with partnerships across the EU to develop "strategic autonomy" from other regions. As a result, the outlook for Poland has improved, and the EU predicts a 3.6% gross domestic product expansion in 2025 even as the rest of the world struggles with stagnant growth. Top companies won't be recognizable to many U.S. investors, including leading regional financial institution PKO Bank Polski SA (P90.MU) and energy company Orlen SA (PKY1.MU). But for those looking for a laser-focused investment in one of the fastest-growing nations in Europe this year, EPOL is a tactical ETF worth a look.
Expense ratio: 0.6%
After the Russian invasion of Ukraine in 2022, much of Europe's economy was thrown into turmoil – but Central and Eastern Europe, in particular, were among the hardest hit. Since then, there has been improvement for these countries coupled with partnerships across the EU to develop "strategic autonomy" from other regions. As a result, the outlook for Poland has improved, and the EU predicts a 3.6% gross domestic product expansion in 2025 even as the rest of the world struggles with stagnant growth. Top companies won't be recognizable to many U.S. investors, including leading regional financial institution PKO Bank Polski SA (P90.MU) and energy company Orlen SA (PKY1.MU). But for those looking for a laser-focused investment in one of the fastest-growing nations in Europe this year, EPOL is a tactical ETF worth a look.
Re: 7 Best ETFs to Buy Now in 2025
VanEck Gold Miners ETF (GDX)
Expense ratio: 0.51%
During times of uncertainty, gold really shines. And while physical gold bullion has done quite well in recent months, this VanEck ETF has outperformed the precious metal itself in 2025. GDX is focused on the publicly traded gold miners that manage gold reserves and extract the precious metal from the ground, meaning it is a bit more indirect in its exposure to gold markets. With the fund up about 18% since Jan. 1, however, there is clearly a case for investing in miners – and considering the volatility in other assets, this outperformance is even more noteworthy.
Expense ratio: 0.51%
During times of uncertainty, gold really shines. And while physical gold bullion has done quite well in recent months, this VanEck ETF has outperformed the precious metal itself in 2025. GDX is focused on the publicly traded gold miners that manage gold reserves and extract the precious metal from the ground, meaning it is a bit more indirect in its exposure to gold markets. With the fund up about 18% since Jan. 1, however, there is clearly a case for investing in miners – and considering the volatility in other assets, this outperformance is even more noteworthy.
Re: 7 Best ETFs to Buy Now in 2025
ARK Fintech Innovation ETF (ARKF)
Expense ratio: 0.75%
The news has been full of commentary about technocrats who have cozied up to President Donald Trump in the last month or two, resulting in increased optimism that the White House will be friendly toward Big Tech companies looking to move fast on next-generation business ideas. This ARK ETF is focused on companies that are rethinking the financial sector through things like blockchain technology, digital assets and mobile payments. Leading components include e-commerce infrastructure provider Shopify Inc. (SHOP) and crypto exchange Coinbase Global Inc. (COIN). ARKF is up about 13% this year and has gained about 65% in the last six months on optimism around the future of fintech.
Expense ratio: 0.75%
The news has been full of commentary about technocrats who have cozied up to President Donald Trump in the last month or two, resulting in increased optimism that the White House will be friendly toward Big Tech companies looking to move fast on next-generation business ideas. This ARK ETF is focused on companies that are rethinking the financial sector through things like blockchain technology, digital assets and mobile payments. Leading components include e-commerce infrastructure provider Shopify Inc. (SHOP) and crypto exchange Coinbase Global Inc. (COIN). ARKF is up about 13% this year and has gained about 65% in the last six months on optimism around the future of fintech.
Re: 7 Best ETFs to Buy Now in 2025
VanEck Uranium and Nuclear ETF (NLR)
Expense ratio: 0.61%
With Republicans steadily moving policy away from green energy, there has been an increased focus on fossil fuel companies and their potential opportunity in 2025. However, nuclear power seems to be a middle ground that has both Trump's support and appeal on the left. When used safely, nuclear power has an extremely low carbon footprint, and it's not as intermittent or difficult to transmit as wind or solar. NLR is the leading ETF to play nuclear energy, including both uranium companies and engineering firms involved with reactors, as well as utilities like Constellation Energy Corp. (CEG) that have significant nuclear generation operations as part of their power mix.
Expense ratio: 0.61%
With Republicans steadily moving policy away from green energy, there has been an increased focus on fossil fuel companies and their potential opportunity in 2025. However, nuclear power seems to be a middle ground that has both Trump's support and appeal on the left. When used safely, nuclear power has an extremely low carbon footprint, and it's not as intermittent or difficult to transmit as wind or solar. NLR is the leading ETF to play nuclear energy, including both uranium companies and engineering firms involved with reactors, as well as utilities like Constellation Energy Corp. (CEG) that have significant nuclear generation operations as part of their power mix.
Re: 7 Best ETFs to Buy Now in 2025
Alerian MLP ETF (AMLP)
Expense ratio: 0.85%
AMLP is among the largest energy ETFs out there and is the preeminent fund tied directly to MLPs, or master limited partnerships. This class of company is granted special tax status thanks to capital-intensive infrastructure costs, such as building pipelines or storage facilities. In exchange, MLPs must deliver the lion's share of profits back to shareholders via generous dividends. This Alerian MLP ETF yields a tremendous 7.7% thanks to holdings like Plains All American Pipeline LP (PAA) and Energy Transfer LP (ET), two of the largest energy infrastructure names on Wall Street. Though MLPs don't cash in as much as explorers when oil prices rise, they have more stable businesses that can hang tough in periods of uncertainty and volatility.
Expense ratio: 0.85%
AMLP is among the largest energy ETFs out there and is the preeminent fund tied directly to MLPs, or master limited partnerships. This class of company is granted special tax status thanks to capital-intensive infrastructure costs, such as building pipelines or storage facilities. In exchange, MLPs must deliver the lion's share of profits back to shareholders via generous dividends. This Alerian MLP ETF yields a tremendous 7.7% thanks to holdings like Plains All American Pipeline LP (PAA) and Energy Transfer LP (ET), two of the largest energy infrastructure names on Wall Street. Though MLPs don't cash in as much as explorers when oil prices rise, they have more stable businesses that can hang tough in periods of uncertainty and volatility.
Re: 7 Best ETFs to Buy Now in 2025
iShares MSCI USA Min Vol Factor ETF (USMV)
Expense ratio: 0.15%
If the prior funds still seem too risky in these uncertain times, USMV is an established ETF that offers a way to layer on a low-risk approach to the core holdings in your portfolio. Its holdings generally have lower volatility characteristics relative to the average movement of U.S. stocks. For example, its top holdings include Microsoft Corp. (MSFT) and Walmart Inc. (WMT). To be clear, this "minimum volatility" fund isn't a sure thing. All investors should know that there's no investment anywhere that's guaranteed to always move higher, and USMV is no exception. It is, however, designed to protect you from big moves to the downside while still keeping you invested in leading domestic stocks.
Expense ratio: 0.15%
If the prior funds still seem too risky in these uncertain times, USMV is an established ETF that offers a way to layer on a low-risk approach to the core holdings in your portfolio. Its holdings generally have lower volatility characteristics relative to the average movement of U.S. stocks. For example, its top holdings include Microsoft Corp. (MSFT) and Walmart Inc. (WMT). To be clear, this "minimum volatility" fund isn't a sure thing. All investors should know that there's no investment anywhere that's guaranteed to always move higher, and USMV is no exception. It is, however, designed to protect you from big moves to the downside while still keeping you invested in leading domestic stocks.