As we venture into 2025, the exchange-traded fund (ETF) landscape in the United States continues to evolve, offering investors diversified exposure across various sectors, themes, and strategies. With thousands of ETFs to choose from, identifying the top-performing options can be overwhelming. We have curated a list of the 10 best US ETFs to watch in 2025, providing detailed insights to help you make informed investment decisions.
1. SPDR S&P 500 ETF Trust (SPY)
The SPDR S&P 500 ETF is the first ETF in the top “10 best US ETFs to watch in 2025.” Trust, commonly referred to as SPY, is one of the most popular and liquid ETFs in the world.
- Objective: Tracks the performance of the S&P 500 Index.
- Key Features:
- Offers exposure to the largest 500 companies in the US.
- Extremely high liquidity makes it ideal for both retail and institutional investors.
- The low expense ratio of 0.09%.
- Who Should Invest: Suitable for investors seeking broad market exposure with a focus on large-cap stocks.
2. Invesco QQQ ETF (QQQ)
The QQQ ETF is the second ETF in the top “10 best US ETFs to watch in 2025.” It focuses on technology and growth-oriented companies listed on the Nasdaq-100 Index.
- Objective: Provides exposure to leading non-financial companies in tech and innovation.
- Key Features:
- High concentration in industry giants like Apple, Microsoft, and Amazon.
- Attractive for tech-focused portfolios.
- The expense ratio is 0.20%.
- Who Should Invest: Best suited for investors who believe in the long-term growth of technology and innovation sectors.
3. Vanguard Total Stock Market ETF (VTI)
VTI is a go-to option for those looking for comprehensive exposure to the entire US stock market.
- Objective: Covers the full spectrum of the US stock market, including large-, mid-, and small-cap stocks.
- Key Features:
- Over 4,000 holdings, ensuring extensive diversification.
- The ultra-low expense ratio of 0.03%.
- Tracks the CRSP US Total Market Index.
- Who Should Invest: Ideal for investors seeking a cost-effective, broad-market investment.
4. iShares Russell 2000 ETF (IWM)
IWM offers targeted exposure to small-cap companies within the US market.
- Objective: Mirrors the performance of the Russell 2000 Index.
- Key Features:
- Focuses on small-cap companies, providing growth opportunities.
- Historically more volatile but has higher potential returns.
- The expense ratio is 0.19%.
- Who Should Invest: Investors with a higher risk tolerance and a focus on small-cap growth opportunities.
5. ARK Innovation ETF (ARKK)
ARKK is a high-conviction ETF that focuses on disruptive innovation.
- Objective: Invests in companies pioneering advancements in areas like genomics, robotics, AI, and fintech.
- Key Features:
- Actively managed by ARK Invest, led by Cathie Wood.
- Concentrated portfolio with a higher risk-return profile.
- The expense ratio of 0.75%.
- Who Should Invest: Risk-tolerant investors seeking exposure to high-growth, innovative sectors.
6. Vanguard Dividend Appreciation ETF (VIG)
VIG is a solid choice for income-focused investors.
- Objective: Tracks companies with a strong history of increasing dividends.
- Key Features:
- Includes high-quality dividend-growth companies.
- The expense ratio of 0.06%.
- Low volatility compared to growth-oriented ETFs.
- Who Should Invest? Conservative investors prioritize stability and income growth.
7. iShares MSCI Emerging Markets ETF (EEM)
EEM provides exposure to emerging market equities.
- Objective: Tracks the performance of the MSCI Emerging Markets Index.
- Key Features:
- Diverse portfolio with holdings in countries like China, India, and Brazil.
- Higher volatility with potential for significant returns.
- Expense ratio of 0.69%.
- Who Should Invest: Investors looking to diversify into high-growth, international markets.
8. SPDR Gold Shares (GLD)
GLD is a premier choice for those looking to hedge against market volatility and inflation.
- Objective: Tracks the price of gold bullion.
- Key Features:
- Provides direct exposure to physical gold.
- Highly liquid with a strong correlation to gold prices.
- The expense ratio of 0.40%.
- Who Should Invest: Suitable for investors seeking a safe-haven asset during uncertain times.
9. ProShares UltraPro S&P500 (UPRO)
UPRO is designed for short-term traders looking for leveraged exposure to the S&P 500 Index.
- Objective: Seeks to provide three times the daily performance of the S&P 500.
- Key Features:
- High-risk, high-reward investment strategy.
- It requires active management and monitoring.
- The expense ratio is 0.92%.
- Who Should Invest: Experienced traders with a high-risk appetite aiming for short-term gains.
10. iShares US Healthcare ETF (IYH)
IYH focuses on the resilient and growing healthcare sector.
- Objective: Tracks the performance of the Dow Jones US Healthcare Index.
- Key Features:
- Includes leading healthcare companies like Johnson & Johnson and Pfizer.
- Defensive investment during economic downturns.
- Expense ratio of 0.39%.
- Who Should Invest: Investors seeking stable, long-term growth in the healthcare sector.
Conclusion
The US ETF market offers a diverse range of options catering to various investment goals, risk tolerances, and market outlooks. From broad-market funds like SPY and VTI to sector-specific options like ARKK and IYH, the right ETF can enhance your portfolio’s performance and stability in 2025. Evaluate your financial objectives and risk appetite before making an investment decision.