Top 5 ETFs to Buy in 2025 (USA/Canada Edition)
Smart investing starts with smart choices – explore the most trusted ETFs for this year.
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Exchange-Traded Funds (ETFs) are one of the safest and smartest ways to invest in 2025. They combine the flexibility of stock trading with the long-term benefits of mutual funds — but with lower fees, higher control, and better returns for most retail investors.
Whether you’re from New York, Toronto, or anywhere in between, this guide will walk you through the best ETFs to consider this year — even if you’re just getting started. We’ll keep it plain and simple.
💡 What is an ETF?
It’s a group of investments (like a basket) — stocks, bonds, or commodities — bundled together and traded like a single stock. It gives you built-in diversification and flexibility with just one buy.
📈 Why Are ETFs So Popular in 2025?
- ✅ Ultra-low fees: Many ETFs charge less than 0.1% annually
- ✅ Diversification: Own 50 to 500 companies with one click
- ✅ Risk-balanced: You don’t depend on one stock or sector
- ✅ Easy access: Trade anytime on apps like Fidelity, Wealthsimple, Robinhood
- ✅ Perfect for beginners: No stock-picking stress or market timing
Updated before market open – USA & Canada focused
📌 Top ETF #1: Vanguard S&P 500 ETF (VOO)
The VOO ETF is a classic — perfect for anyone wanting to track the entire U.S. market through the S&P 500 index. You get exposure to Apple, Microsoft, Amazon, Google, and other market giants in one place.
💡 Ideal For: Long-term investors seeking steady U.S. market growth with low fees.
Metric | VOO |
---|---|
Expense Ratio | 0.03% |
Top Holdings | Apple, Microsoft, Nvidia, Amazon |
Avg. 10-Year Return | ~12.7% |
🔍 Tip: This ETF is great inside a Roth IRA or TFSA for maximum tax-free growth.
📌 Top ETF #2: iShares Core MSCI World ETF (XWD)
If you want global exposure from Canada — XWD is your friend. It covers over 900 companies across the U.S., Europe, Japan, Australia and more.
🌍 Perfect For: Canadian investors who want global equity exposure with one ETF.
Metric | XWD |
---|---|
Expense Ratio | 0.47% |
Top Holdings | Apple, Microsoft, Nestlé, Samsung |
Exposure | Developed markets globally |
Includes historical charts, growth forecasts, and ETF comparisons
📌 Top ETF #3: Invesco QQQ Trust (QQQ)
If you're bullish on tech in 2025, QQQ is a must-watch. It tracks the Nasdaq-100 index — packed with non-financial giants like Apple, Meta, Nvidia, and Tesla. This ETF is famous for high returns (with slightly higher risk).
🚀 Great For: Growth-focused investors with a long-term horizon (5+ years)
Metric | QQQ |
---|---|
Expense Ratio | 0.20% |
Top Holdings | Apple, Microsoft, Nvidia, Amazon |
5-Year Avg Return | ~16.3% |
📌 Top ETF #4: BMO Equal Weight Banks Index ETF (ZEB)
This Canadian-based ETF gives equal weight to top-tier banks like RBC, TD, BMO, Scotiabank, and more. It’s dividend-focused and stable — great for monthly income and low volatility.
💸 Suitable For: Dividend lovers and passive income seekers in Canada
Metric | ZEB |
---|---|
Expense Ratio | 0.55% |
Dividend Yield | ~4.2% |
Top Holdings | RBC, TD, BMO, Scotia, CIBC |
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📌 Top ETF #5: Schwab U.S. Dividend Equity ETF (SCHD)
SCHD is perfect for dividend investors. It invests in high-quality U.S. companies with solid dividend history — ideal for long-term passive income. The ETF also has lower volatility than many others in its category.
📊 Good For: Monthly income, retirement savings, and DRIP (dividend reinvestment)
Metric | SCHD |
---|---|
Expense Ratio | 0.06% |
Dividend Yield | ~3.6% |
Top Holdings | PepsiCo, Home Depot, Texas Instruments |
📊 ETF Quick Comparison (2025)
ETF | Risk | Growth | Income |
---|---|---|---|
VOO | Low | ✔️ | ➖ |
XWD | Low | ✔️ | ➖ |
QQQ | Medium | 🔥 | ➖ |
ZEB | Low | ➖ | ✔️ |
SCHD | Low | ✔️ | ✔️ |
🎯 How to Choose the Right ETF in 2025?
- ✅ Define your goal — growth, income, or safety?
- ✅ Check the expense ratio & tax structure
- ✅ Consider country (US vs Canada) and currency exposure
- ✅ Long-term? Look at 5–10 year performance
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📚 ETF FAQs (2025)
Q1: Are ETFs safe for beginners?
Answer: Yes, most ETFs like VOO and SCHD are built for long-term investors and offer broad diversification with lower risk compared to individual stocks.
Q2: Can I buy US ETFs from Canada?
Answer: Yes, via platforms like Wealthsimple, Questrade, or Interactive Brokers. Be aware of U.S. tax implications and currency conversion fees.
Q3: How much should I invest in ETFs?
Answer: Start with $100–$500 monthly via SIP or lump sum. The key is consistency and holding long-term to beat inflation and grow wealth.
Want to expand your financial knowledge further? Check out our beginner-friendly guide on How to Invest in US Stocks as a Beginner in 2025 , and stay informed about protecting your finances with Best Health Insurance Plans 2025 .