With four months of 2025 behind us, investors are still trying to figure out where the market — and Washington — are headed. And as a result, the more tactical funds out there seem to be gaining traction as the tried-and-true index funds lag behind.
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To be clear, the best long-term strategy for investors is to stay the course with a diversified portfolio designed to grow their nest egg over years and decades rather than perform well over the next few days or weeks. Many years of Wall Street research proves that this “set it and forget it” approach actually results in outperformance versus active management, and it remains the most reliable choice for most individuals.
While that may make sense academically, it’s admittedly quite hard to just sit on your hands while the market is melting down. So in the interest of those who are looking for a more tactical approach right now, here are some of the best ETFs to buy right now based on the current environment and recent momentum:
| ETF | Assets | Expense Ratio |
| iPath Series B S&P 500 VIX Short-Term Futures (ticker: VXX) | $347 million | 0.89% |
| Cambria Tail Risk ETF (TAIL) | $156 million | 0.59% |
| iShares MSCI Global Gold Miners ETF (RING) | $1.4 billion | 0.39% |
| Global X Copper Miners ETF (COPX) | $2.1 billion | 0.65% |
| iShares MSCI Mexico ETF (EWW) | $1.9 billion | 0.50% |
| iShares International Select Dividend ETF (IDV) | $4.7 billion | 0.49% |
| Vanguard Ultra-Short Treasury ETF (VGUS) | $102 million | 0.07% |
iPath Series B S&P 500 VIX Short-Term Futures (VXX)
Assets: $347 million Annual expenses: 0.89% It’s not just the fast-changing environment in D.C. or the freewheeling tactics of President Donald Trump that are sparking uncertainty. The fears about inflation date far earlier than just Election Day, the world continues to hold its breath as Russia continues its aggression in Ukraine, and the market was generally concerned with frothy valuations after investors bought heavily into the hype of AI over the last year or two. Clearly there are a lot of risks — but thankfully, investors can bet on volatility itself as measured by the CBOE Volatility Index, commonly known as the VIX. VXX is a way to profit from potential short-term increases in volatility via futures markets. VXX can be a costly long-term holding, and this kind of play on volatility is an investment in a derivative of a derivative. But as a swing-trade or an insurance policy against market mayhem, VXX has been in favor lately, with a run of more than 30% year to date in 2025.
Cambria Tail Risk ETF (TAIL)
Assets: $156 million Annual expenses: 0.59%
Less of a swing trade and more of a long-term insurance policy, TAIL is an interesting ETF for investors who are looking for a hedge against “tail risk.” This concept can be broadly defined as the chance of rare events far outside the norm. This Cambria fund hedges against that, by investing in stable U.S. Treasurys and supplementing the portfolio with options trades that will profit if the stock market declines. Of course, the TAIL ETF has slowly declined since its inception in 2017 as those options have been on the wrong side of the rally during the past several years. The fund has spiked almost 15% since Jan. 1, however, as proof that it is a great way to protect your portfolio if and when things roll over.
iShares MSCI Global Gold Miners ETF (RING)
Assets: $1.4 billion Annual expenses: 0.39%
Sticking with our theme of low-risk investments, gold is considered a safe haven asset and a store of value in troubled times. Gold has done very well in the past few months as a result, but more notable is the outperformance of gold mining stocks above the run of the precious metal itself. There are dozens of different examples out there, but RING is a great specimen thanks to its massive scale as well as its more than 40% run since Jan. 1, compared with “only” 25% or so for gold bullion prices. Besides, buying and storing gold bullion can be cumbersome, so the next best thing for many investors is an ETF that has exposure to this asset — and with top holdings like Newmont Corp. (NEM) and Agnico Eagle Mines Ltd. (AEM), RING is a who’s who of the top companies in the sector.
Global X Copper Miners ETF (COPX)
Assets: $2.1 billion Annual expenses: 0.65%
Keeping with the theme of hard assets, COPX is an interesting play on “base” metals vs. precious metals. Copper in particular is very interesting after regularly hitting new all-time highs over the past year or so — showing it was on a heck of a run even before recent trade wars sparked even more inflationary concerns to drive up prices.
COPX is not a direct play on the metal, as it holds 40 mining stocks that are major copper extractors but also dabble in other materials as part of their operations. These include a healthy dose of international stocks, with only about 10% of assets in the U.S. and top holdings such as Canadian firm First Quantum Minerals Ltd. (OTC: FQVLF) and Zijin Mining Group Co Ltd. (OTC: ZIJMF).
This global approach to copper, including stocks that don’t trade on major U.S. exchanges, makes COPX a good option if you’re interested in playing the trend of raw materials inflation thanks to global trade dynamics.
iShares MSCI Mexico ETF (EWW)
Assets: $1.9 billion Annual expenses: 0.5%
If you’re comfortable with overseas exposure to stocks, then it’s worth noting the other geographies that have been seeing big gains in 2025 even as U.S .companies have stumbled. Europe has been a popular place for investors to look, but closer to home, companies in Mexico have been going like gangbusters with more than 20% gains year to date for two reasons: First, the region is riding a long-term uptrend that includes Mexican stock outperforming broader emerging-market trends over the past two years. And second, Mexico remains deeply tied to the U.S. economy and seems to have gotten special treatment from the Trump administration when it comes to tariff relief. Populated with about 40 of the largest firms in that nation, EWW has seen a strong tailwind in 2025 and could continue to outperform if conditions remain favorable in the region.
iShares International Select Dividend ETF (IDV)
Assets: $4.7 billion Annual expenses: 0.49%
Sticking with the theme of international exposure but with a much lower risk profile, IDV is an “ex-U.S.” fund that holds some of the biggest dividend stocks on the planet. The outperformance of overseas markets coupled with the generally low-risk nature of income stocks makes IDV a great place to hide out from volatility elsewhere in the stock market. The list of top holdings includes familiar multinationals like British American Tobacco PLC (BTI), French energy leader TotalEnergies SE (TTE) and Germany’s Mercedes-Benz Group AG (OTC: MBGAF), and boasts a collective yield of 5.3% across all its holdings — almost four times the dividend potential of the S&P 500.
Vanguard Ultra-Short Treasury ETF (VGUS)
Assets: $102 million Annual expenses: 0.07%
Bond ETFs are an important holding to diversify into different asset classes beyond common stocks. And in 2025, bond exposure is more important than ever, as many funds have posted modest gains even as Wall Street has encountered broad declines.
VGUS has one of the lowest risk profiles of any bond fund out there. This Vanguard bond ETF tracks the Bloomberg Short Treasury Index with holdings of 12 months or less in maturity, with an average duration of less than half a year. That short-term nature provides certainty, as it’s unlikely the U.S. government will go bankrupt in the next six months. You don’t have to settle for measly dividends in the bargain, either, as VGUS currently pays a 4.2% yield.
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7 Best ETFs to Buy Now originally appeared on usnews.com
Update 05/06/25: This story was previously published at an earlier date and has been updated with new information.
