Introduction
Investing is no longer just a game for trading experts. These days, with just a smartphone and a little bit of curiosity about trading, anyone can dive into the world of investing. And if you have been looking around at investing and related topics, you have probably heard about exchange traded funds (ETF) a lot too.
If you are not sure what they are or which ETFs are worth watching this year, this blog can help you figure that out.
Let us talk about some of the best ETFs to keep on your radar in 2025 and why they might just be a great fit for your investment goals.
What is an ETF?
Exchange-traded funds, or ETF, is a cart containing a variety of stocks, bonds, and other assets. Instead of buying a single company’s stock, you can buy a little slice of this cart. It is a simple way to spread your risk without having to hand-select dozens of stocks all by yourself.
ETFs can be bought and sold during market hours, just like ordinary equities.They are known for being low-cost, flexible and beginner-friendly.
Whether you are investing for your retirement, building wealth or just curious about the trading market, there’s likely an ETF out there for you to check out.
Now, let us check out 6 of the best ETFs that experts and everyday investors alike are keeping a close eye on this year.
If you are not sure what they are or which ETFs are worth watching this year, this blog can help you figure that out.
Let us talk about some of the best ETFs to keep on your radar in 2025 and why they might just be a great fit for your investment goals.
Top 6 Exchange Traded Funds to Watch This Year
1. Vanguard S&P 500 ETF (VOO)
If you are looking for something steady and well-known, this is the classic one to invest in. VOO tracks the S&P 500, which includes 500 of the biggest companies in the US like Apple, Microsoft and Amazon.
Why this ETF is worth watching in 2025? That would be a question that pops up in your mind right now.
It is because large-cap companies tend to hold up well even when markets get a bit uneven. Moreover, ETF performance for VOO over the past few years has also been strong and consistent. Therefore, that makes it a go-to choice for both beginners and seasoned investors.
2. iShares MSCI Emerging Markets ETF (EEM)
If you want to look beyond the US market, EEM provides you with exposure to countries like India, Brazil, and Southeast Asia, all of which are growing fast.
Countries that are developing have a lot of potential to grow, but they can also be somewhat unreliable. If you are someone who believes in the long-term rise of global economies, this could be one of the best ETFs to consider for 2025.
Just keep in mind that ETF performance in this category might fluctuate more than with US-focused funds.
3. ARK Innovation ETF (ARKK)
If you have a taste for the bold and futuristic, this ETF fund is all about innovation. ARKK invests in companies doing cutting-edge work like AI, genomics and robotics.
This ETF is known for its swings, both up and down and as for 2025, it is one to watch closely as tech and innovation continue to reshape our world.
If you are not afraid of a little risk and want something that could offer big returns, ARKK might be your kind of fund.
4. Invesco QQQ ETF (QQQ)
The Nasdaq-100, which contains some of the largest tech companies in the world, such as Google, Meta, and NVIDIA, is tracked by QQQ. It is of no surprise that QQQ has been a top performer in recent years.
ETF performance here has been strong and with AI and digital tech only gaining more ground, QQQ continues to be one of the best ETFs to follow in 2025.
5. Schwab U.S. Dividend Equity ETF (SCHD)
If you are into steady income and value, SCHD might be worth your time to look into. This ETF focuses on high-dividend US stocks and that means you are not just banking on price growth but you are also getting regular payouts.
In uncertain markets, dividend-paying stocks often hold up better. That is why many investors are keeping an eye on SCHD’s ETF performance this year. It is a solid pick for anyone who prefers slow and steady over fast and flashy.
6. SPDR S&P Biotech ETF (XBI)
Biotech is at the forefront of the latest developments in healthcare. XBI gives you exposure to a wide range of biotech companies and that includes big names and smaller players working on the next big cure.
Biotech can be unpredictable, but at the same time it is also exciting. If you are okay with a bit of risk and want to bet on science and medicine transforming lives, XBI could be a strong competitor on your 2025 watchlist.
In uncertain markets, dividend-paying stocks often hold up better. That is why many investors are keeping an eye on SCHD’s ETF performance this year. It is a solid pick for anyone who prefers slow and steady over fast and flashy.
Things to Keep in Mind When Choosing ETFs
Not all exchange traded funds are created equal and what works for one person might not work for another, also
Here are a few things to think about before diving in:
- Your goals: Be clear whether you want to invest for steady revenue, long-term growth or a combination of the two.
- Risk tolerance: The volatility of different ETFs varies. Make sure you are comfortable with the ups and downs.
- Fees: Always check the costs because lower ratios of expenses result in greater amounts staying in your pocket.
- Diversification: Look at what’s inside the ETF and consider whether it gives you enough variety.
Tracking ETF performance regularly and staying updated on market trends can help you make smarter moves over time.
Conclusion
Whether you are just getting started or you have been investing for a while, ETFs offer a simple, flexible and cost-effective way to build and highlight your portfolio.
From steady options like VOO and SCHD to growth-oriented picks like ARKK and XBI, there is something for every kind of investor.
Just remember to do your homework, match your picks with your goals and keep an eye on ETF performance as the year unfolds.
Investing doesn’t have to be complicated. With the right exchange traded funds, a little patience and a long-term mindset, you are already on your way to making smart money moves.