7 Best ETFs to Buy Now for 2025
7 Best ETFs to Buy Now for 2025
After two straight 20%-plus up years for the S&P 500 in 2023 and 2024, many investors have learned to be content with what the market gives them. In 2025, that's proving to be a much less attractive option.
The S&P 500 is down about 5% through March 31, with market losses steeply accelerating in early April after the Trump administration's hard-handed and sudden tariffs that ignited market panic and started a string of retaliatory tariffs from U.S. trading partners. The market is now firmly in the red compared with where it was on Election Day 2024. That is perhaps the most tangible sign that businesses are struggling to make sense of the policy environment in Washington, and that investors are fearful that deep government cuts and combative trade policies could have serious negative consequences for the stock market in the months ahead.
If you're looking to take a more tactical approach to avoid the widespread volatility and general declines on Wall Street, consider one of the following seven leading exchange-traded funds. The following list of the best ETFs to buy now each commands more than $7 billion in total assets, but each represents its own unique take on current market conditions:
ETFAssetsExpense ratio
iShares China Large-Cap ETF (ticker: FXI)$7.4 billion0.74%
Vanguard FTSE Europe ETF (VGK)$19.4 billion0.06%
Utilities Select Sector SPDR ETF (XLU)$18 billion0.08%
Vanguard International High Dividend Yield ETF (VYMI)$8.3 billion0.17%
Health Care Select Sector SPDR ETF (XLV)$37.7 billion0.08%
iShares Gold Trust (IAU)$42.7 billion0.25%
Vanguard S&P 500 ETF (VOO)$622 billion0.03%
The S&P 500 is down about 5% through March 31, with market losses steeply accelerating in early April after the Trump administration's hard-handed and sudden tariffs that ignited market panic and started a string of retaliatory tariffs from U.S. trading partners. The market is now firmly in the red compared with where it was on Election Day 2024. That is perhaps the most tangible sign that businesses are struggling to make sense of the policy environment in Washington, and that investors are fearful that deep government cuts and combative trade policies could have serious negative consequences for the stock market in the months ahead.
If you're looking to take a more tactical approach to avoid the widespread volatility and general declines on Wall Street, consider one of the following seven leading exchange-traded funds. The following list of the best ETFs to buy now each commands more than $7 billion in total assets, but each represents its own unique take on current market conditions:
ETFAssetsExpense ratio
iShares China Large-Cap ETF (ticker: FXI)$7.4 billion0.74%
Vanguard FTSE Europe ETF (VGK)$19.4 billion0.06%
Utilities Select Sector SPDR ETF (XLU)$18 billion0.08%
Vanguard International High Dividend Yield ETF (VYMI)$8.3 billion0.17%
Health Care Select Sector SPDR ETF (XLV)$37.7 billion0.08%
iShares Gold Trust (IAU)$42.7 billion0.25%
Vanguard S&P 500 ETF (VOO)$622 billion0.03%
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Re: 7 Best ETFs to Buy Now for 2025
iShares China Large-Cap ETF (FXI)
Expense ratio: 0.74%
Assets: $7.4 billion
This leading iShares fund has surged almost 10% since Jan. 1 and is up a spectacular 35% or so in the last 12 months. There are only about 50 total stocks in the portfolio, but top holdings are the biggest names in the nation including tech giant Tencent Holdings (OTC: TCEHY) and megabank China Construction Bank Corporation (OTC: CICHF). And with China still targeting GDP growth of around 5% even in the face of the current geopolitical tensions, there's good reason investors are cozying up to the nation even if Washington is less receptive these days. Keep an eye on the developing tit-for-tat trade war with this one, as it has the potential to slow the recent momentum of Chinese names.
Expense ratio: 0.74%
Assets: $7.4 billion
This leading iShares fund has surged almost 10% since Jan. 1 and is up a spectacular 35% or so in the last 12 months. There are only about 50 total stocks in the portfolio, but top holdings are the biggest names in the nation including tech giant Tencent Holdings (OTC: TCEHY) and megabank China Construction Bank Corporation (OTC: CICHF). And with China still targeting GDP growth of around 5% even in the face of the current geopolitical tensions, there's good reason investors are cozying up to the nation even if Washington is less receptive these days. Keep an eye on the developing tit-for-tat trade war with this one, as it has the potential to slow the recent momentum of Chinese names.
Re: 7 Best ETFs to Buy Now for 2025
Vanguard FTSE Europe ETF (VGK)
Expense ratio: 0.06%
Assets: $19.4 billion
One of the top Vanguard ETFs of the year, this ranks as the top Vanguard ETF of 2025 through the end of March, with a return of around 12%. This fund owns nearly 1,300 different companies to touch all major markets on the continent, from France to Germany to Spain to the United Kingdom. Like most domestic Vanguard index funds, VGK's portfolio is weighted by market value, so it's led by prominent multinationals including Germany's SAP SE (SAP), Denmark-based health care leader Novo Nordisk (NVO) and Swiss consumer giant Nestle SA (OTC: NSRGY), among others. If you're looking to invest abroad but would rather not put your money in the People's Republic of China, this top-performing Europe ETF is also worth a look right now.
Expense ratio: 0.06%
Assets: $19.4 billion
One of the top Vanguard ETFs of the year, this ranks as the top Vanguard ETF of 2025 through the end of March, with a return of around 12%. This fund owns nearly 1,300 different companies to touch all major markets on the continent, from France to Germany to Spain to the United Kingdom. Like most domestic Vanguard index funds, VGK's portfolio is weighted by market value, so it's led by prominent multinationals including Germany's SAP SE (SAP), Denmark-based health care leader Novo Nordisk (NVO) and Swiss consumer giant Nestle SA (OTC: NSRGY), among others. If you're looking to invest abroad but would rather not put your money in the People's Republic of China, this top-performing Europe ETF is also worth a look right now.
Re: 7 Best ETFs to Buy Now for 2025
Utilities Select Sector SPDR ETF (XLU)
Expense ratio: 0.08%
Assets: $18 billion
U.S.-based utilities book nearly every penny of their revenue right here at home, making them relatively insulated from troubles with trade. Furthermore, the highly regulated nature of this industry, coupled with a strong baseline demand from customers, means that it's highly unlikely we are going to see significant variability in the profits of leading utility stocks in the coming months. Throw in the fact that utility stocks are generally known as low-risk, high-dividend investments and it's easy to see why XLU is sitting on modest gains this year while other sectors are in the red. A nearly 3% dividend yield from this fund is a decent sweetener on top of that, too.
Expense ratio: 0.08%
Assets: $18 billion
U.S.-based utilities book nearly every penny of their revenue right here at home, making them relatively insulated from troubles with trade. Furthermore, the highly regulated nature of this industry, coupled with a strong baseline demand from customers, means that it's highly unlikely we are going to see significant variability in the profits of leading utility stocks in the coming months. Throw in the fact that utility stocks are generally known as low-risk, high-dividend investments and it's easy to see why XLU is sitting on modest gains this year while other sectors are in the red. A nearly 3% dividend yield from this fund is a decent sweetener on top of that, too.
Re: 7 Best ETFs to Buy Now for 2025
Vanguard International High Dividend Yield ETF (VYMI)
Expense ratio: 0.17%
Assets: $8.3 billion
If you like those prior two funds, then VYMI is a good example of blending both an overseas focus as well as prioritizing low-risk dividend stocks. This leading Vanguard ETF focuses on international stocks that offer above-average dividend yields, right now offering a trailing yield of 4.5% to provide roughly three times the yield of the S&P 500 at present. It's not overly reliant on just a few picks, either, with a portfolio of nearly 1,500 international leaders including U.K. megabank HSBC Holdings PLC (HSBC) and Swiss pharma leader Roche Holding AG (OTC: RHHBY). About half of the Vanguard International High Dividend Yield ETF's stocks are based in Europe, but other regions including Japan (14%) and Canada (8%) are also well-represented.
Expense ratio: 0.17%
Assets: $8.3 billion
If you like those prior two funds, then VYMI is a good example of blending both an overseas focus as well as prioritizing low-risk dividend stocks. This leading Vanguard ETF focuses on international stocks that offer above-average dividend yields, right now offering a trailing yield of 4.5% to provide roughly three times the yield of the S&P 500 at present. It's not overly reliant on just a few picks, either, with a portfolio of nearly 1,500 international leaders including U.K. megabank HSBC Holdings PLC (HSBC) and Swiss pharma leader Roche Holding AG (OTC: RHHBY). About half of the Vanguard International High Dividend Yield ETF's stocks are based in Europe, but other regions including Japan (14%) and Canada (8%) are also well-represented.
Re: 7 Best ETFs to Buy Now for 2025
Health Care Select Sector SPDR ETF (XLV)
Expense ratio: 0.08%
Assets: $37.7 billion
Another leading sector ETF that has outperformed in 2025 is XLV, which has also risen despite troubles for the broader domestic stock market. That's in part because healthcare is one of the most reliable sectors in a downturn, thanks to patients getting medical care and prescription drugs regardless of whether it's a bull market or a bear market. XLV is a who's who of the sector, with entrenched giants including Eli Lilly & Co. (LLY), UnitedHealth Group Inc. (UNH) and Johnson & Johnson (JNJ) at the top of the portfolio. These stable health care leaders have attracted "risk off" investors over the last few weeks to drive about 5% returns for XLV through March 31.
Expense ratio: 0.08%
Assets: $37.7 billion
Another leading sector ETF that has outperformed in 2025 is XLV, which has also risen despite troubles for the broader domestic stock market. That's in part because healthcare is one of the most reliable sectors in a downturn, thanks to patients getting medical care and prescription drugs regardless of whether it's a bull market or a bear market. XLV is a who's who of the sector, with entrenched giants including Eli Lilly & Co. (LLY), UnitedHealth Group Inc. (UNH) and Johnson & Johnson (JNJ) at the top of the portfolio. These stable health care leaders have attracted "risk off" investors over the last few weeks to drive about 5% returns for XLV through March 31.
Re: 7 Best ETFs to Buy Now for 2025
iShares Gold Trust (IAU)
Expense ratio: 0.25%
Assets: $42.7 billion
Looking beyond just investing in stocks, it's worth noting that gold has significantly outperformed most equities in 2025. That's for obvious reasons, thanks to the precious metal's reputation as a low-risk store of value that is particularly well-positioned to protect portfolios from inflation. IAU one of the largest and most affordable ETFs to get direct exposure to gold, as the fund is tied to physical bullion prices rather than gold miners or other related investments. Shares are up 15% this year to prove the potential of IAU to hold firm in tough times. Sure, there isn't as much growth potential in a bar of gold – but right now, it's not growth that many investors are concerned with.
Expense ratio: 0.25%
Assets: $42.7 billion
Looking beyond just investing in stocks, it's worth noting that gold has significantly outperformed most equities in 2025. That's for obvious reasons, thanks to the precious metal's reputation as a low-risk store of value that is particularly well-positioned to protect portfolios from inflation. IAU one of the largest and most affordable ETFs to get direct exposure to gold, as the fund is tied to physical bullion prices rather than gold miners or other related investments. Shares are up 15% this year to prove the potential of IAU to hold firm in tough times. Sure, there isn't as much growth potential in a bar of gold – but right now, it's not growth that many investors are concerned with.
Re: 7 Best ETFs to Buy Now for 2025
Vanguard S&P 500 ETF (VOO)
Expense ratio: 0.03%
Assets: $622 billion
While it's tempting to get tactical, the truth is that no investor can ever know for sure where the market is headed. At the same time, reams of investment research shows that the most profitable long-term strategy for most of us is to buy and hold low-cost index funds for the long-term. This S&P 500 ETF from Vanguard is among the largest funds on the planet and is elegantly simple, tracking the S&P 500 index of the largest U.S. companies, led by giants like Apple Inc. (AAPL) and Microsoft Corp. (MSFT). If you don't really feel like churning your portfolio and risking making costly mistakes by misreading the outlook on Wall Street, it may pay to simply play the U.S. stock market with a straightforward fund like VOO. After all, U.S. stocks often decline in the near-term … but over several years or even several decades, they almost never let you down.
Expense ratio: 0.03%
Assets: $622 billion
While it's tempting to get tactical, the truth is that no investor can ever know for sure where the market is headed. At the same time, reams of investment research shows that the most profitable long-term strategy for most of us is to buy and hold low-cost index funds for the long-term. This S&P 500 ETF from Vanguard is among the largest funds on the planet and is elegantly simple, tracking the S&P 500 index of the largest U.S. companies, led by giants like Apple Inc. (AAPL) and Microsoft Corp. (MSFT). If you don't really feel like churning your portfolio and risking making costly mistakes by misreading the outlook on Wall Street, it may pay to simply play the U.S. stock market with a straightforward fund like VOO. After all, U.S. stocks often decline in the near-term … but over several years or even several decades, they almost never let you down.