From the impact of U.S. Republican economic policies to conflicts in the Middle East and Ukraine, to high-tech megatrends like artificial intelligence (AI) and cryptocurrencies, it has been one wild ride on Wall Street in 2025. And while many investors are just happy to see the S&P 500 peeking into the green year to date, the fact is that a few tactical exchange-traded funds, also known as ETFs, have managed to power consistently higher and deliver big-time returns lately.
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The best ETFs to buy now come in very different shapes and sizes, but all share a focused approach on a discrete investment theme. There’s obviously more risk in this approach, as the sentiment that has lifted these top funds could decay and result in equally impressive declines if their luck changes. But for the time being, they are riding strong momentum with bright outlooks for the coming months:
| ETF | Expense Ratio | Total Assets |
| Select Stoxx Europe Aerospace & Defense ETF (ticker: EUAD) | 0.50% | $1.0 billion |
| Sprott Gold Miners ETF (SGDM) | 0.50% | $412.3 million |
| YieldMax PLTR Option Income Strategy ETF (PLTY) | 1.44% | $623.5 million |
| iShares MSCI Poland ETF (EPOL) | 0.60% | $479.7 million |
| Global X Uranium ETF (URA) | 0.69% | $3.7 billion |
| iShares MSCI South Korea ETF (EWY) | 0.59% | $4.9 billion |
| ARK Next Generation Internet ETF (ARKW) | 0.82% | $2.1 billion |
Select Stoxx Europe Aerospace & Defense ETF (EUAD)
Assets: $1 billion Expense ratio: 0.5%
With recent conflict in the Middle East, the stakes are even higher for Europe as the war between Ukraine and Russia drags on. And with the Trump administration lukewarm about supporting NATO or America’s historical allies in Europe, the E.U. has been increasingly invested in independent defense operations that don’t rely on outside forces. That has resulted in a particular lift for EUAD, the largest and perhaps only fund to play local aerospace and defense names from French airplane giant Airbus SE (OTC: EADSY) to German security firm Rheinmetall AG ADR (OTC: RNMBY). Shares of this red-hot ETF are up more than 71% in 2025 as of July 2.
Sprott Gold Miners ETF (SGDM)
Assets: $412.3 million Expense ratio: 0.5%
A natural extension of all the geopolitical uncertainty this year is a rise in gold prices, as the precious metal is seen as a store of value in troubled times. Sure, gold historically underperforms growth names in the tech sector and doesn’t provide consistent income like dividend stocks or bonds. But when times get tough, gold really shines. There are many ways to play gold right now, but this Sprott ETF stands out thanks to 64% gains year to date. Its components are gold miners and not physical gold, which is “only” up about 25% on the year. There’s more risk to investing in this ETF, which holds stocks like Newmont Corp. (NEM) and Agnico Eagle Mines Ltd. (AEM). But it’s hard to argue with recent returns, thanks to the operational tailwind mining companies get.
YieldMax PLTR Option Income Strategy ETF (PLTY)
Assets: $623.5 million Expense ratio: 1.44%
YieldMax offers a series of boutique ETFs that are plays on underlying stocks plus related options to tap into potentially supercharged returns. There are several big-name stocks that have products like this, but the one tied to Palantir Technologies Inc. (PLTR) stands above the rest, thanks to the high-flying performance of this fashionable artificial intelligence firm. PLTR stock is up about 75% on the year, and the PLTY ETF had delivered nearly that much in distributions as of early July via its options strategy. The promise of buying and holding to harness those returns via payouts rather than picking the right entry or exit point is appealing to many traders. But just keep in mind that these derivatives carry even more risk than the underlying stock itself, so if sentiment sours then PLTY could turn in a hurry.
iShares MSCI Poland ETF (EPOL)
Assets: $479.7 million Expenses: 0.6%
One of the interesting phenomena of 2025 is that an increasingly insular set of U.S. trade policies have actually driven outperformance of several overseas regions — with European stocks among the top performers. It’s natural, then, that this Poland-focused fund has outperformed given the region’s importance to the E.U. A less developed but resource-rich region with affordable labor, Poland’s modest but resilient economy was the only member of the E.U. to avoid a formal recession through the 2007-2008 financial crisis. The nation is expecting 3% GDP expansion in 2025 even as the rest of the world struggles with stagnant growth, making EPOL worth a look as one of the only ways for U.S. investors to invest in this region with ease. Top companies in EPOL include leading regional financial institution PKO Bank Polski SA (OTC: PSZKF) and energy company Orlen SA (OTC: PSKOF).
Global X Uranium ETF (URA)
Assets: $3.7 billion Expense ratio: 0.69%
Sticking with the impact of Washington policies, URA is a fashionable fund for many investors who are looking ahead at the easing of regulations for nuclear power over the next few years. This energy source is in a sweet spot between fossil fuels, which are problematic in the age of climate change, and more traditional energy sources that are favored by conservatives who don’t trust wind or solar to be reliable. This Global X fund owns shares of companies like leading uranium miner Cameco Corp. (CCJ), as well as having roughly 25% in assets related to physical uranium.
iShares MSCI South Korea ETF (EWY)
Assets: $4.9 billion Expense ratio: 0.59%
South Korea’s main stock index, the KOSPI, has just notched its highest level in more than three years, driven by gains in technology firms like Samsung Electronics (OTC: SSNLF) and auto stocks like Hyundai Motor Co. (OTC: HYMTF). Continued foreign investor interest has also boosted the region, as traders look for alternatives to U.S. stocks amid trade wars. And with the end of a recent power vacuum thanks to a June election, filling the role of president after the impeachment of the prior leader who shook the nation by declaring martial law in December, hopes for political stability have added to the optimism about the region. This leading Korea ETF is up 41.4% year to date as a result.
ARK Next Generation Internet ETF (ARKW)
Assets: $2.1 billion Expense ratio: 0.82%
While the prior funds are the best ETFs based in large part on uncertainty and general market volatility, ARKW is a bit of an oddball in that it’s one of those fashionable tech funds that seem more appropriate for the “risk on” environment of prior years versus the current climate. Composed of innovators like Coinbase Global Inc. (COIN) and Robinhood Markets Inc. (HOOD), this tech-heavy fund is a who’s who of disruptive Web 3.0 players that are looking to reshape the digital economy in the decades to come. With returns of more than 35% so far in 2025, this growth-oriented ETF continues to power higher even while investors generally have taken a more defensive approach.
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7 Best ETFs to Buy Now originally appeared on usnews.com
Update 07/03/25: This story was previously published at an earlier date and has been updated with new information.
