Exchange-traded funds (ETFs) have become a cornerstone for investors seeking diversified, cost-effective, and long-term growth opportunities. As we look ahead to 2025, selecting the right ETFs can help you capitalize on emerging trends, robust sectors, and global economic growth.
Here are five must-have ETFs to consider for building a resilient, growth-oriented portfolio.
1. Vanguard Total Stock Market ETF (VTI)
The Vanguard Total Stock Market ETF (VTI) offers investors exposure to the entire U.S. equity market, including large-, mid-, small-, and micro-cap stocks. With its low expense ratio and broad diversification, VTI is an excellent core holding for long-term growth. It captures the overall performance of the U.S. economy and benefits from the compounding growth of American businesses across all sectors.
2. iShares MSCI ACWI ex U.S. ETF (ACWX)
For those seeking global diversification, the iShares MSCI ACWI ex U.S. ETF (ACWX) provides access to international developed and emerging markets outside the United States. This ETF helps investors tap into growth opportunities in Europe, Asia, and other regions, reducing reliance on the U.S. market and enhancing portfolio resilience against domestic downturns.
3. Invesco QQQ Trust (QQQ)
The Invesco QQQ Trust (QQQ) tracks the Nasdaq-100 Index, which is heavily weighted toward technology and innovative companies such as Apple, Microsoft, and Nvidia. QQQ is ideal for investors who want to participate in the long-term growth of the tech sector and benefit from the ongoing digital transformation shaping the global economy.
4. Schwab U.S. Dividend Equity ETF (SCHD)
The Schwab U.S. Dividend Equity ETF (SCHD) focuses on high-quality U.S. companies with a strong track record of paying dividends. While growth is a priority, SCHD also provides stability and income, making it a balanced choice for long-term investors who want to weather market volatility while still capturing upside potential.
5. iShares Global Clean Energy ETF (ICLN)
Sustainable investing continues to gain momentum, and the iShares Global Clean Energy ETF (ICLN) offers exposure to leading companies in the renewable energy sector. As governments and corporations worldwide accelerate the transition to clean energy, ICLN positions investors to benefit from the growth of solar, wind, and other green technologies.
Conclusion: Building a Future-Ready Portfolio
Choosing the right mix of ETFs is crucial for long-term growth and risk management. By incorporating these five ETFs—spanning U.S. equities, international markets, technology, dividends, and clean energy—you can build a diversified portfolio poised to thrive in 2025 and beyond. Always consider your individual risk tolerance and investment goals before making portfolio decisions