Top 5 ETFs to watch in 2025  

What is an ETF?

An ETF, which stands for exchange-traded fund, is a type of investment vehicle that enables you to track the performance of an underlying set of assets or an index. ETFs are bought and sold on exchanges.

You get different types of ETFs; some cover stocks, whereas others track indices. In this article, we’ve listed a mixture of both.

ETFs can vary in a few ways. Typically, you’ll find:

• Physically replicated ETFs: Buy the underlying asset, such as stocks, which the benchmark tracks
• Synthetically replicated ETFs: Use derivatives to gain exposure to the benchmark and track performance
• Income distribution ETFs: Return dividends to investors
• Accumulated distribution ETFs: Reinvest dividends into the fund
• Smart beta ETFs: Use extra rules in an attempt to outperform their benchmark

Passive vs active ETFs

Passive ETFs are those that track an index, say the S&P 500, and aim to replicate its performance. They hold the same stock in the same proportions as the index.

Active ETFs are managed by professionals who proactively try to outpace the benchmark. They don’t necessarily track an index, and the fees on these are usually higher due to the active management. 

Advantages of ETFs

The pros of ETFs include:

• Diversification: ETFs can provide exposure to multiple industries in one financial vehicle. For example, you might trade an ETF that includes stocks from the automotive, telecommunications and health services industries. ETFs can also invest by country and index
• Accessibility: ETFs provide a relatively low-cost way to gain exposure to different asset classes, investment strategies and markets
• Similar to stock trading: Investing in and trading ETFs is very much like trading stocks in several ways. For example, you trade them at a market-based price that’s updated throughout the day
• Highly liquid: Popular ETFs are often more liquid than stocks, so you shouldn’t have a problem buying or selling them due to a lack of demand or supply

Disadvantages of ETFs

Let’s now look at some of the disadvantages of trading ETFs:

• Costs can be greater than stock trading: You’re looking at commissions and management fees when you invest in actively managed ETFs. Additionally, spreads can be wider on more niche ETFs than they are on stocks
• Lower dividend yields: While you do get dividend stocks in ETFs, they might not necessarily be the highest-yielding ones
• Volatility: ETFs are also vulnerable to volatility, and there’s no guarantee that your investment will grow. However, flip this around for CFD trading, where volatility presents opportunities to profit (or lose)

Top 5 ETFs to watch in 2025

We used several criteria in determining the top five ETFs to watch, including:

• Asset diversification: A balanced mix of exposure to precious metals, growth-focused technology and dividend-focused stocks
• Performance year-to-date (YTD): These ETFs have all had substantial gains year to date (as of 17 September 2025) for those looking to stock trade. If you’re seeking volatility for CFD trading, you’ll still find it in these ETFs because, while all have gained in 2025, some have seen peaks and retracements
• Political and economic stability: Relatively stable markets

About the ETFs in this article

These ETFs can all be traded via CFDs or stock traded with us, except for the abrdn Physical Platinum Shares ETF.

1. iShares MSCI Global Gold Miners ETF (NASDAQ: RING)

Exposure: Tracks the investment results of the MSCI ACWI Select Gold Miners Investable Market Index

YTD performance: 105.01%¹

The iShares MSCI Global Gold Miners ETF invests at least 80% of its assets in the stocks of the underlying index and in assets that have economic characteristics almost identical to the underlying’s stocks.

Essentially, it tracks no fewer than 30 companies involved in gold mining.

It employs a market cap-weighted structure, meaning larger companies receive proportionally higher weightings in the portfolio.

RING's geographic exposure spans multiple continents, with significant allocations to North American miners like Newmont Corporation and Barrick Gold, Australian companies such as Northern Star Resources and emerging market players from South Africa, Ghana and other gold-producing regions.

Highlights:

• While the ETF’s growth has been impressive this year, the constituent companies are beholden to volatility from production costs, regulatory changes and capital allocation (this all independent from gold price changes), providing opportunities for CFD traders looking to capitalise on price movements
• Global exposure to companies deriving most of their revenue from gold mining activities, giving stock traders diversity within the gold sector

2. VanEck Vietnam ETF (CBOE: VNM)

Exposure: Attempts to replicate the performance of the MarketVector Vietnam Local Index

YTD performance: 54.94%²

The VanEck Vietnam ETF offers pure-play exposure to Vietnamese stock markets. It provides access to one of Southeast Asia's fastest-growing economies through a concentrated portfolio of Vietnamese-listed companies and Vietnamese businesses trading on international exchanges.

The ETF employs a modified market cap-weighted methodology with individual security caps to prevent excessive concentration. These weightings include sectors such as finance, consumer discretionary, real estate and industrials.

Highlights:

• Major holdings include leading Vietnamese banks like Vietcombank and BIDV, consumer companies such as Masan Group, and real estate developers like Vingroup
• Captures companies listed on both the Ho Chi Minh Stock Exchange and Hanoi Stock Exchange
• Vietnam benefits from supply chain diversification trends as companies seek alternatives to China-based manufacturing. However, investors and traders should consider Vietnam's emerging market risks, including currency volatility, regulatory changes and liquidity constraints

3. abrdn Physical Platinum Shares ETF (NYSE Arca: PPLT)

Exposure: Seeks to replicate the performance of physical platinum

YTD performance: 47.09%³

The abrdn Physical Platinum Shares ETF provides exposure to physical metal ownership rather than futures contracts or mining company stocks.

The fund holds actual platinum bars stored in secure vaults, with each share representing a fractional ownership interest in the fund's platinum holdings. The structure eliminates contango (when the futures price of a commodity is higher than the spot price) and backwardation (when a commodity's spot price (for immediate delivery) is higher than its futures price) effects that can impact futures-based commodity funds, providing returns that closely track spot platinum prices without management fees.

Highlights:

• The platinum is stored in London vaults operated by JPMorgan Chase Bank, with regular audits ensuring authenticity and quantity. Stockholders can theoretically redeem shares for physical platinum delivery, but minimum requirements make this impractical for most retail stock traders
• The fund's net asset value fluctuates directly with London Platinum and Palladium Market spot prices, providing transparent and efficient platinum exposure

4. Invesco QQQ Trust (NASDAQ: QQQ)

Exposure: Tracks the NASDAQ-100 Index

YTD performance: 16.11%⁴

The Invesco QQQ Trust is one of the most widely traded ETFs, tracking the NASDAQ-100 Index, which comprises the 100 largest non-financial companies listed on the Nasdaq. This modified market cap-weighted fund provides concentrated exposure to technology, consumer discretionary and communication services sectors, with technology companies typically representing 50% – 60% of the constituents.

The ETF's performance closely tracks major technology trends, including cloud computing, AI, electric vehicles (EVs), social media and ecommerce. This concentration has driven strong long-term returns during technology bull markets but creates downside risk during sector rotations or technology sell-offs.

QQQ's liquidity is exceptional, with narrow spreads and significant daily trading volume making it suitable for both long-term holdings and tactical trading strategies.

Highlights:

• QQQ's top holdings include mega-cap technology companies like Apple, Microsoft, Amazon, Tesla, Alphabet, Meta and NVIDIA. This sector concentration creates significant exposure to innovation-driven companies, but also increases volatility compared to broader market indices
• The low expense ratio provides cost-effective access to premier technology companies, though the lack of international diversification and sector concentration need careful portfolio construction considerations

5. Vanguard High Dividend Yield Index ETF (NYSE Arca: VYM)

Exposure: Tracks the FTSE High Dividend Yield Index

YTD performance: 10.27%⁵

The Vanguard High Dividend Yield Index ETF’s underlying index focuses on US companies that pay above-average dividend yields. The ETF employs a market cap-weighted structure that emphasises dividend sustainability over maximum yield, screening out companies with unsustainably high payouts or recent dividend cuts.

The fund typically holds 400 – 450 stocks across multiple sectors, with significant allocations to utilities, consumer staples, healthcare, financials and energy companies. Major holdings include established dividend stocks like Johnson & Johnson, Procter & Gamble, JPMorgan Chase and Exxon Mobil.

Highlights:

• The fund's sector diversification helps reduce concentration risk while maintaining focus on income generation
• Utilities and consumer staples provide defensive characteristics and steady payouts, while healthcare and financial holdings offer growth potential alongside dividend income

How to trade ETFs with IG UAE

CFDs

1. Open a CFD trading account with IG UAE
2. Search for ETFs on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it 

Stock trading

1. Open a stock trading account with IG UAE
2. Search for ETFs
3. Choose the ETF you want to buy
4. Determine how many stocks you want to purchase
5. Place your order
6. Monitor your investment 

FAQs about ETFs

Footnotes
 

1. TradingView, September 2025
2. TradingView, September 2025
3. TradingView, September 2025
4. TradingView, September 2025
5. TradingView, September 2025