Top ETFs and trading insights
ETFs have become an established way to access a broad mix of markets within a single trade. They combine the flexibility of shares with the diversification of funds, making them a commonly used instrument among both retail and institutional traders.
ETFs, or exchange-traded funds, remain one of the most efficient ways to gain diversified market exposure through a single trade. These ‘baskets’ of assets – traded on exchanges like shares – track a specific index, sector, commodity or other financial market. This allows traders to access multiple assets at once, often more efficiently than holding single positions.
Whether tracking major indices or specialist industries, ETFs provide broad market access at relatively low cost. The most suitable options will depend on a trader’s objectives, available capital and risk tolerance.
What are some leading ETFs for 2025 and beyond?
Below, we explore some of the most traded ETFs across equity and bond markets – noting that past performance is not a reliable indicator of future results.
Vanguard total stock market ETF
Tracking the CRSP US Total Market Index, the Vanguard Total Stock Market ETF (VTI) offers exposure to almost the entire US equity market – from small- and mid-caps to large-cap growth and value stocks.
In 2025, US large-cap shares outperformed broader segments, helping VTI achieve solid double-digit returns. This was supported by the dominance of major technology companies such as Apple (APPL), Microsoft (MSFT), and Nvidia (NVDA), whose combined weight in the fund has increased in recent years.
While this concentration has lifted returns, it has reduced diversification benefits from smaller-cap holdings – an important factor for portfolio balance. VTI remains a widely used benchmark for traders seeking comprehensive US market exposure.
Past performance is not a reliable indicator of future results.
Invesco QQQ trust
The Invesco QQQ Trust (QQQ) tracks the Nasdaq-100 Index, offering access to leading US technology and innovation-focused companies.
In 2025, QQQ outperformed broader indices, driven by strong gains in Nvidia, Palantir (PLTR), and continued resilience from Apple, Microsoft and Alphabet (GOOGL). These movements reinforced QQQ’s reputation as a key barometer of US tech performance.
Its concentrated exposure brings both opportunity and risk. Tech-sector volatility persisted through 2025, with sharp moves during periods of profit-taking. High weighting in a limited number of firms can amplify both upside and downside swings, particularly in sentiment-driven markets.
Still, QQQ provides streamlined access to the largest and most liquid technology stocks – a defining feature of US markets in recent years.
Past performance is not a reliable indicator of future results.
Vanguard FTSE developed markets ETF
The Vanguard FTSE Developed Markets ETF (VEA) provides exposure to equities across developed economies outside the US, including Europe, Canada, Japan, and Australia.
In 2025, VEA returned nearly 30% year-to-date, supported by stronger activity in European, Japanese, Canadian and Australian markets. This recovery was underpinned by improving economic data, steady corporate earnings and renewed institutional inflows.
VEA remains a popular option for international diversification in a single trade. However, currency movements have influenced returns this year, particularly as shifts in the US dollar affected dollar-based investors.
Top holdings include Nestlé (NESN), Toyota (7203), and Samsung (SMSN), offering exposure across key global sectors.
Past performance is not a reliable indicator of future results.
iShares Core MSCI Emerging Markets ETF
The iShares Core MSCI Emerging Markets ETF (IEMG) tracks the MSCI Emerging Markets Investable Market Index, spanning large-, mid- and small-cap companies from developing economies.
In 2025, performance improved amid renewed interest in emerging markets, particularly in Asia during the second half of the year. Growth in Taiwan and South Korea, alongside resilience in India and Latin America, helped lift returns.
Major constituents include Taiwan Semiconductor Manufacturing (TSM), Tencent (0700), and Alibaba (BABA), highlighting the region’s technology strength. As always, emerging-market exposure involves higher volatility and sensitivity to geopolitical or currency developments – factors to consider when assessing potential risk and reward.
Past performance is not a reliable indicator of future results.
Vanguard total bond market ETF
The Vanguard Total Bond Market ETF (BND) tracks the Bloomberg US Aggregate Float-Adjusted Index, covering a broad mix of investment-grade bonds – from government to corporate and mortgage-backed securities.
Bond markets in 2025 have seen notable shifts amid rate adjustments and changing yield curves. These factors have influenced returns across fixed-income ETFs, including BND.
Its broad coverage makes it a useful tool for diversification and risk management, though rising yields have weighed on bond prices through parts of the year. Holdings include US Treasuries and investment-grade corporate bonds, offering balanced access to the US fixed-income landscape.
Past performance is not a reliable indicator of future results.
Past performance is not a reliable indicator of future results.
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FAQ
What are the top-performing ETFs?
To identify which ETFs have performed strongly over a given period, it’s important to examine metrics such as total return, volatility and liquidity across your chosen timeframe. These measures can vary as market conditions evolve. Conduct independent research and consider your financial goals, risk tolerance and overall market environment before trading any ETF. Given the wide variety of trading strategies and sectors available, the most suitable ETF will depend on your individual objectives and approach to risk.
What risks should I consider before trading ETFs?
All trading involves risk. ETFs are subject to price fluctuations, particularly when they track specific sectors, regions or emerging markets. While diversification can help manage exposure, it does not eliminate the possibility of losses. When trading ETFs via contracts for difference (CFDs), leverage can amplify both gains and losses. Before trading, make sure you understand how the ETF is structured, the markets it tracks and the potential costs involved.
How can I trade ETFs on Capital.com?
You can trade a broad selection of ETF CFDs on the Capital.com platform, with access to global indices, sector-based funds and thematic ETFs covering areas such as technology, commodities and emerging markets. Our platform provides fast execution, advanced charting tools and free educational resources to help you explore ETF trading in an informed way. CFDs are complex instruments and involve a high risk of losing money rapidly due to leverage, so make sure you understand how they work before trading.