10 best ETFs for the future: My ETF recommendation for 2025
Volatile markets make it difficult to make forecasts for 2025 and choose investments for the future. In such phases, ETFs are the ideal investment thanks to their diversification, wide selection and high returns.
But with hundreds of possible products to choose from, you naturally need to select the right candidate or index. I have compiled my personal selection of the best ETFs for you – both for short-term investments and for the future!
In brief:
- Recently, the stock markets have been experiencing significant volatility. In such phases, a well-chosen ETF is your best friend!
- In addition to trending topics such as AI, a simple All-World ETF is always a good choice.
- With special ETFs, you can achieve good results even in times of crisis.
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Best ETF easily outperforms stocks
2024 was a real rollercoaster ride for most stocks. 2025 is likely to be similar. US technology stocks continue to post huge gains, but corrections are becoming more frequent and the AI bubble is threatening to burst.
Enormous growth alternates with sharp slumps here. Exchange-traded funds, on the other hand, offer a number of advantages:
- You invest in dozens or even hundreds of companies, commodities, cryptocurrencies and more.
- This makes them less sensitive to fluctuations, as changes in one asset have only a minor impact on the ETF as a whole.
- There is a wide range of funds available. For example, you can invest in different regions through a European, North American or Asian ETF, or focus on specific sectors such as automotive.
- The costs are significantly lower than for comparable active funds. This is because there are no fund managers to pay. The composition is determined automatically. Although ETFs also incur costs, these are significantly lower.
The ‘best ETF’ depends on your strategy!
Are you looking for the best ETF? Not an easy task! Of course, you could simply search for the product with the highest return. But that’s where the difficulties begin: what time period do you choose for your search? A fund that has posted extreme gains in the last six months may have been heavily in the red for the three years prior to that.
A product featuring the most successful technology stocks may have lost considerable value with the bursting of the AI bubble, but could generate significant gains in the coming years.
- The best ETF is therefore always one that fits your investment strategy and planned investment period.
A product with manageable risk and reliable returns can be ideal for long-term wealth accumulation. If, on the other hand, you want to take a short-term gamble, there are plenty of funds available with high volatility.
Therefore, determine in advance the factors that are important to you:
- Return (obviously!)
- Risk
- Should your ETF be accumulating or distributing?
- planned investment period
Always keep an eye on the diversification of your portfolio and don’t put all your eggs in one basket (industry, region). The ‘best ETF’ is therefore always one that suits you and your strategy.
ETF recommendation: The best ETFs for 2025
To find the best ETFs, I analysed various key figures. However, as the results of the funds only represent past performance, I also consulted the recommendations and approaches of well-known professional investors.
I have also tried to put together a good mix of different products for different objectives. As already mentioned, one investor may be looking for the best ETF for the future, which they want to hold for 10 years or more. Another, on the other hand, may want to profit from a trend for three months…
Of course, it is impossible to say with certainty whether a find will actually fulfil the expectations placed on it. Past performance is no guarantee of future returns! Therefore, check all products again personally before investing. After all, ‘best ETF’ is and remains a designation that only you can assign!
1. 21Shares Bitcoin Core ETP
| Name | 21Shares Bitcoin Core ETP |
| ISIN | CH1199067674 |
| Volume | €292 million |
| Dividend | Accumulative |
| Costs | 0.21% p.a. |
In your opinion, is the best ETF one that offers particularly high returns? Then the 21Shares Bitcoin Core ETP could be right for you! Here, you invest exclusively in the cryptocurrency Bitcoin. Since its launch just two years ago, the fund has already generated returns of almost 400%!
The 21Shares Bitcoin Core ETP has seen some serious gains in the past.
- As is usual with blockchain ETFs, however, the slumps were also considerable and have cost the ETP many percentage points in the meantime.
- Future developments are entirely dependent on the crypto market, which in turn has a strong correlation with the major tech stocks.
- So if you are already invested in cryptocurrencies or technology companies, this product could lead to clustering.
- However, if you want to start with digital currencies and can bear the considerable risk, you’ve come to the right place.
This is an ETP, an exchange-traded product, as it only contains a single security. Unlike exchange-traded funds, there is no diversification, which increases both opportunities and risks.
The Bitcoin ETP presented here is issued by 21Shares, a Swiss provider of crypto ETPs. Unfortunately, not all brokers offer this specific product, but there are many comparable ETPs from other issuers. Alternatively, you can simply open another securities account with a broker that offers 21Shares.
As there are effectively no longer any custody account fees, there are no additional costs. You can find out which broker is best suited to you in our broker comparison.
2. iShares Core S&P 500 UCITS ETF
| Name | iShares Core S&P 500 UCITS ETF |
| ISIN | IE00B5BMR087 |
| Volume | €79 billion |
| Dividend | Accumulative |
| Costs | 0,07 % p.a. |
| Company | Percentage share |
|---|---|
| NVIDIA Corp. | 6,62 |
| Apple | 6,62 |
| Amazon.com, Inc. | 3,86 |
| Meta Platforms | 2,41 |
| Alphabet, Inc. A | 2,33 |
| Alphabet, Inc. C | 1,95 |
| Berkshire Hathaway, Inc. | 1,60 |
| Eli Lilly & Co. | 1,58 |
| Broadcom Inc. | 1,52 |
Many investors believe they need to find absolute insider tips and set themselves apart from the ‘broad masses’. This is a widespread misconception that often ends in dubious investments and heavy losses. The best proof of this is the iShares Core S&P 500 UCITS ETF. With over €100 billion in assets, it is one of the largest exchange-traded funds in the world!
Investments are made in the S&P 500, the most important stock index in the United States. And it pays off: over the past 12 months, returns of over 26% have been achieved (as of spring 2025). Looking at the last five years, there has been a corresponding gain of more than 100%.
Despite sharp declines during the COVID crisis, the S&P 500 is showing very good overall performance.
This may not win it the title of ‘best ETF in terms of returns’, but it does offer very good and fairly consistent results. There may be occasional price slumps – such as on 5 August 2024, when the index lost around 8 per cent – but in the long term, the S&P 500 always goes up.
- This fund is therefore particularly well suited for long-term wealth accumulation and is one of the most popular savings plan options.
- Due to its simple functionality and good return opportunities, the iShares Core S&P 500 is also an ideal ETF for beginners.
- There are currently several forecasts predicting a weakening US economy or even a genuine recession in the coming months. Should this scenario materialise, the iShares Core S&P 500 is also likely to lose value. This is therefore the ideal time to acquire additional shares at a particularly favourable price!
3. Amundi MSCI Semiconductors ESG Screened UCITS ETF Acc
| Name | Amundi MSCI Semiconductors ESG Screened UCITS ETF Acc |
| ISIN | LU1900066033 |
| Volume | €355 million |
| Dividend | Accumulative |
| Costs | 0,35 % p.a. |
| Company | Percentage share |
|---|---|
| NVIDIA Corp. | 30,59 |
| Taiwan Semiconductor Manufacturing Co., Ltd. | 11,68 |
| Broadcom Inc. | 11,55 |
| ASML Holding NV | 6,51 |
| AMD | 4,12 |
| QUALCOMM, Inc. | 3,75 |
| Applied Materials, Inc. | 3,09 |
| Texas Instruments | 2,82 |
| Micron Technology | 2,44 |
| Lam Research | 2,18 |
With the Amundi MSCI Semiconductors ESG Screened UCITS ETF Acc, we have added another high-yield fund to our list of the best ETFs.
- It includes the most important companies in the semiconductor industry, both from industrialised and emerging countries.
- Artificial intelligence and the popularity of cryptocurrencies have fuelled demand for computer chips in recent years. Manufacturers of graphics cards and other components are benefiting enormously from this, and with this ETF, you can share in their success.
- The fund has been around since 2007 and has generated returns of over 800 percent! Recently, however, it has been on a downward trend as more and more investors fear that the AI bubble will burst. In fact, further setbacks could occur in the near future.
In the long term, however, computer chips are probably one of the safest investment areas around, as we will only be using more and more of them in the future. Even if the current AI hype were to evaporate, the companies in this exchange-traded fund still have excellent prospects for the future.
The ETF is available for a fair 0.35 per cent per annum and is issued by Amundi. You can find it in the product range of numerous brokers. These include Scalable Capital, for example. You can find out more about this particular provider in my review of Scalable Capital.
4. Invesco US Technology Sector UCITS ETF
| Name | Invesco US Technology Sector UCITS ETF |
| ISIN | IE00B3VSSL01 |
| Volume | €889 million |
| Dividend | Accumulative |
| Costs | 0,14 % p.a. |
Want to benefit from technology stocks but don’t want to focus solely on the semiconductor industry? Then the Invesco US Technology Sector UCITS ETF could be right for you.
be ideal for you. It tracks the technology stocks from the S&P 500 Index. All securities are limited to a maximum of 20 percent of the fund.
In practice, however, this does not lead to restrictions, as none of the companies dominates the market to such an extent.
- The maximum profit since its launch in 2010 was 1,600 percent.
Recently, things have been going downhill again. Nevertheless, one thing is clear: the US technology sector is one of the most lucrative sectors around!
For only 0.14% per annum, you get an excellent investment. Whether this fund deserves the title of ‘Best ETF’ depends largely on whether you already have stocks from Microsoft, Apple, Nvidia and Co. in your portfolio.
5. Vanguard FTSE All World High Dividend Yield
| Name | Vanguard FTSE All World High Dividend Yield |
| ISIN | IE00B8GKDB10 |
| Volume | €5 billion |
| Dividend | Distributing |
| Costs | 0,29 % p. a. |
| Sector | Percentage share |
|---|---|
| Financial services | 25,81 |
| Basic consumer goods | 10,24 |
| Technology | 9,97 |
| Industry | 9,76 |
| Health care | 9,57 |
| Energy | 9,53 |
| Non-essential goods | 7,83 |
| Utility company | 5,70 |
| Raw materials | 5,61 |
| Other | 5,98 |
The Vanguard FTSE All World High Dividend Yield is a true classic in our list. And with good reason: focusing on dividends is a strategy that has proven itself over decades, bringing stability and cash flow to your portfolio. The Vanguard FTSE All World High Dividend Yield is the ideal vehicle for this strategy.
- To this end, the FTSE All World Index, which comprises companies from all over the world, is filtered according to the strongest dividend payers.
- The result is over 1,000 companies from various sectors. In terms of diversification, the FTSE All World clearly deserves the title of ‘Best ETF’!
The Vanguard FTSE All World High Dividend Yield cannot keep pace with the extreme results achieved by the IT sector. Nevertheless, investors have enjoyed returns of over 20% at times over the last 12 months. Coupled with significantly lower risk, this makes for a very attractive product.
Currently, a dividend of 2.88% is distributed per year. Only a small portion of this is eaten up by fees, as this ETF is quite inexpensive with annual costs of 0.29% and a slightly negative tracking difference.
6. Vanguard FTSE Emerging Markets
| Name | Vanguard FTSE Emerging Markets UCITS ETF |
| ISIN | IE00B3VVMM84 |
| Volume | €2.4 billion |
| dividend | Distributing |
| Costs | 0,22 % p.a. |
The economies of emerging and developing countries were hit by high interest rates and the strong dollar. significantly affected. The Vanguard FTSE Emerging Markets things went downhill accordingly. But the tide turned significantly in 2024!
Emerging markets have recently returned to their usual strong performance, with Vanguard Emerging Markets one of the best ETFs in this category, posting gains of over 20% in the last 12 months. No wonder, then, that such funds are a must-have in a classic 70/30 portfolio!
Good to know: Emerging markets are also among my top 10 ETFs for a savings plan.
7. iShares S&P 500 Healthcare Sector
| Name | iShares S&P 500 Healthcare Sector |
| ISIN | IE00B43HR379 |
| Volume | €2.2 billion |
| dividend | Accumulative |
| Costs | 0,15 % p.a. |
| Company | Percentage share |
|---|---|
| Eli Lilly & Co. | 13,43 |
| UnitedHealth Group | 8,71 |
| Johnson & Johnson | 6,54 |
| Merck & Co., Inc. | 5,83 |
| AbbVie, Inc. | 5,63 |
| Thermo Fisher Scientific, Inc. | 3,92 |
| Abbott Laboratories | 3,36 |
| Amgen, Inc. | 3,12 |
| Danaher Corp. | 3,06 |
| Pfizer Inc. | 2,95 |
The US healthcare industry is generally very profitable – even a recession or inflation can do little to change that. The iShares S&P 500 Healthcare Sector therefore deserves the title of ‘Best ETF in terms of crisis resilience’. With the exception of a sharp but short-lived slump at the beginning of the COVID crisis, this fund has always delivered good results!
Recession, war in Ukraine or the Middle East, trade conflicts with China… People will always get sick and need healing. The continuous growth of this fund is therefore reliable. You can expect an average annual return of 12 percent.
The iShares Health Care Sector ETF offers almost consistently stable results. A drastic but fortunately only short-lived slump during the COVID crisis in 2020 is clearly visible.
Before investing, please bear in mind that this is a highly specialised ETF containing only 63 stocks. There is therefore a corresponding cluster risk. The best use case here is also as an addition to an existing, broadly diversified portfolio.
The best ETFs for the future: my recommendation
Are you looking to build long-term wealth and wondering which ETF is best for the future? My recommendation is clear: don’t experiment! With a fund that tracks the S&P 500, you’re on the safe side and can expect steady growth.
Even an all-world product can be a sensible basis for a long-term portfolio – especially if you don’t believe that the US economy can maintain its leading position in the long term. With an ETF like this, you are well equipped for the future and will continue to benefit even if other nations take on a greater role.
In addition, the semiconductor industry mentioned above is also a promising option. ETFs that track chip manufacturers and related companies are likely to be ideally positioned for the future. Even if the AI bubble bursts and there are short-term slumps, the demand for computing power will only increase in the long term, boosting business!
As a final recommendation, I would like to suggest water ETFs. Drinking water shortages and unequal distribution are enormous challenges for humanity. The droughts of recent years have shown that even in Germany, the water supply is by no means secure in the long term!
The largest water ETF, the iShares Global Water UCITS (ISIN: IE00B1TXK627), has performed well in recent years, with an annual return of around 12 per cent.
Companies that work on the necessary infrastructure or provide important equipment (pumps, cleaning, desalination plants, etc.) benefit directly and in the long term. This will result in some of the best ETFs for the future, which will also perform well in times of crisis. Because people are still thirsty even when the economy is weak!
The great thing about it is that it is a moral ETF recommendation, because you are also making a positive contribution to a good cause with your money!
Conclusion: Best ETF 2025 – something for everyone
There is no single product that deserves the title of ‘Best ETF 2025’. Instead, we have a range of excellent exchange-traded funds that are particularly well suited to different strategies and use cases.
The best ETF for the future is likely to be a classic such as the iShares Core S&P 500 or the Vanguart FTSE All World High Dividend. These securities have proven themselves millions of times over and offer fantastic returns in the long term, despite minor crises and slumps.
If you are prepared to take on significantly higher risk or are not looking to build up long-term wealth, however, completely different products come into play. The 21Shares Ethereum Staking ETP tops the list in terms of pure returns and could win the title of ‘Best ETF’ in this category.
Strictly speaking, however, this is not an ETF, as it only contains a single product – the cryptocurrency Ethereum. This entails a very high level of risk and corresponding price fluctuations. You will also find funds with high returns but considerable risks in the semiconductor sector.
If you prefer something more stable, consider the iShares S&P 500 Healthcare Sector. Healthcare is considered to be very crisis-proof. If you want to bring stability to your portfolio, this product could win the ‘Best ETF’ award for you.
With all securities, you should be aware that there is no guarantee of future price increases. As always, you should therefore ensure that your portfolio is sufficiently diversified: The securities on my list of the best ETFs can be a lucrative addition to your investments. However, despite good chances of substantial gains, you should not put all your eggs in one basket!
FAQ – Frequently asked questions
