Top 10 Best U.S. ETFs to Invest in 2025 for Beginners | High Growth & Low-Cost ETF Guide

Top 10 U.S.-based ETFs in 2025

In 2025, investors are hunting for the best ETFs 2025 to navigate volatile markets. After an incredible 2024 bull run, the S&P 500 has experienced “one of the worst starts in the last 70 years”0. Even so, ETFs remain a favorite choice for diversification, especially for those new to ETFs (ETF investment for beginners). They offer low costs and instant exposure to many stocks. This list of top 10 U.S.-listed ETFs in 2025 covers each fund’s ticker, strategy, and recent performance. We’ll highlight top performing ETFs and explain how to invest in ETFs, so you can easily build a balanced portfolio.

1. Vanguard S&P 500 ETF (VOO)

The Vanguard S&P 500 ETF (ticker VOO) tracks the S&P 500 index, representing 500 of America’s largest “blue chip” companies1. It’s a classic large-cap ETF investment for beginners due to broad market exposure and rock-bottom fees. In fact, VOO was even recognized as the ETF of the Year in 20242. Over the past three years it delivered strong returns (about +38% total)3, thanks to mega-cap winners like Apple, Microsoft and ExxonMobil. The expense ratio is just 0.03%. Overall, VOO serves as a solid core holding – it pays dividends and generally offers stability in down markets.

2. Invesco QQQ Trust (QQQ)

The Invesco QQQ Trust (ticker QQQ) gives exposure to the NASDAQ-100 index, which is heavily weighted toward technology and growth stocks4. It has become one of the world’s most popular ETFs. Because of its tech tilt, QQQ often outpaces the broad market: it returned roughly +51% over the last three years5. (Key holdings include Apple, Amazon, Tesla and other giants.) QQQ is extremely liquid and widely traded, making it easy to buy or sell. Its expense ratio is 0.20%, higher than VOO, but many investors accept that for the high growth potential. Keep in mind, QQQ can be volatile when tech stocks wobble, but it’s a go-to fund for investors seeking a technology-heavy portfolio.

3. Vanguard Total Stock Market ETF (VTI)

The Vanguard Total Stock Market ETF (ticker VTI) offers one-stop exposure to almost the entire U.S. stock market6. It holds thousands of stocks across large, mid and small caps in all sectors, so it’s an easy way to diversify with a single fund. Many beginners love it for simplifying a portfolio. VTI’s fee is ultra-low (0.03%), and it can be traded commission-free at many brokers. In recent years VTI’s returns have been robust (about +35% over three years)7. Because VTI is market-cap weighted, it tilts toward large companies, but still includes small-caps and mid-caps. It’s a versatile core ETF that competes with holding multiple sector funds.

4. Vanguard Growth ETF (VUG)

To focus on fast-growing large-cap stocks, consider the Vanguard Growth ETF (VUG). VUG tracks an index of U.S. large-cap growth companies, mainly tech, media and healthcare leaders. Its recent performance has been impressive – roughly +51% over three years8, on par with QQQ. VUG essentially contains many of the same high-flyers as QQQ but as part of a total-market portfolio. The expense ratio is just 0.04%, so it’s cheap for getting growth exposure. One downside is higher volatility in market downturns. VUG is often paired with broader funds like VTI or VOO to balance growth and core exposure.

5. Vanguard Value ETF (VTV)

The Vanguard Value ETF (VTV) complements VUG by targeting large-cap value stocks (companies trading at lower valuations). As expected, VTV’s performance has been more modest: about +25% over three years9. Many of its holdings are well-established firms that pay dividends. VTV’s fee is also low (0.04%). This fund can provide stability when growth falters, as value stocks sometimes lead when markets pull back. For beginners, including VTV helps diversify style risk – you’re not all in on growth. Over time, value and growth often take turns leading the market.

6. Vanguard FTSE Developed Markets ETF (VEA)

For international diversification, the Vanguard FTSE Developed Markets ETF (VEA) is a top choice. VEA holds stocks from developed economies outside the U.S. (Europe, Japan, etc.), with giants like Nestlé, Toyota and Novartis. Its three-year return has been around +29%10, reflecting more modest growth overseas. The expense ratio is 0.05%. Adding VEA can smooth out U.S.-centric risk by including companies traded in other markets and currencies. Keep in mind it still follows global trends – for example, if world stocks dip, VEA will too. But it’s a core international holding for a balanced portfolio.

7. iShares Core U.S. Aggregate Bond ETF (AGG)

No equity list is complete without a bond fund. The iShares Core U.S. Aggregate Bond ETF (AGG) tracks the U.S. investment-grade bond market (government, agency, and corporate bonds). Investors use AGG for income and stability when stocks are choppy. Over the past three years AGG returned about +6%11. With interest rates higher, AGG’s yield is solid (SEC yield around 4%). Its expense ratio is 0.03%. Bond ETFs like AGG generally move opposite stocks: when stocks fall, bond prices often rise (or yield falls), providing a buffer. Many investors balance their stock ETFs by adding AGG or another bond ETF.

8. SPDR Gold Shares (GLD)

SPDR Gold Shares (GLD) is a commodity ETF that tracks the price of gold bullion. It’s one of the most popular ETFs in the world, offering exposure to an asset class increasingly important for diversification12. Investors buy GLD to hedge against inflation, stock market turmoil or dollar weakness. The fund owns physical gold in vaults, so its price moves in lockstep with spot gold. It doesn’t pay dividends (it simply holds gold), and its expense ratio is 0.40%. GLD has surged in periods of uncertainty – for example, it saw double-digit gains in 2024. As a result, many long-term portfolios include a slice of GLD to reduce overall risk.

9. ARK Innovation ETF (ARKK)

The ARK Innovation ETF (ARKK) is an actively managed fund run by Cathie Wood’s ARK Invest. It invests in “disruptive innovation” companies in tech, biotech, fintech and more (recent holdings have included Tesla, Roku, CRISPR stocks and crypto platforms). ARKK is known for high growth potential but also high risk. It delivered double-digit returns in 2023 and 2024, but can also plunge quickly when its speculative bets get hit. As of early 2025 it remains significantly above its 2022 lows. Its expense ratio is 0.75% (higher due to active management). ARKK is popular among growth-focused investors, but beginner ETF investors should note its volatility and niche focus.

10. iShares Russell 2000 ETF (IWM)

The iShares Russell 2000 ETF (IWM) covers U.S. small-cap stocks, tracking the Russell 2000 index. Small caps can outperform in strong rallies and underperform in downturns. IWM’s recent return is about +8% over three years13, lower than large-cap peers. However, it offers growth potential from smaller companies. Its expense ratio is 0.19%. Investors often include IWM for broad market coverage (alongside VTI or VOO) or for a “risk-on” tilt. Over time, diversifying into small caps with IWM can enhance portfolio returns by capturing parts of the market that big companies don’t.

These ten ETFs cover a broad range of strategies – U.S. large-cap (VOO, QQQ, VTI, VUG, VTV), international (VEA), bonds (AGG), commodities (GLD), thematic (ARKK), and small-cap (IWM). Together they form core “building blocks” for many portfolios. Whether you’re an ETF investment beginner or a seasoned trader, focusing on these funds simplifies diversification. The key is low cost and broad exposure: notice how many have expense ratios near 0.03%. To invest in these ETFs, you simply buy shares (using the ticker symbol) through your brokerage account, just like buying a stock. Start by choosing a few of these best ETFs for 2025 that match your goals. Over time, you can add or trim holdings, but these core ETFs are a great way to get started. With this mix of top performing ETFs and a straightforward approach, you’ll be well-equipped to invest in ETFs in 2025.