Investors are shifting their strategies to risk-off investments, which are assets that provide stability and resilience in volatile periods.
Exchange-traded funds that focus on geopolitical advantages, stable dividends and defensive sectors are becoming more popular. This is due to the fact that Washington will be making significant policy changes and there will be ongoing global economic concerns.
Artificial intelligence and fintech are still attractive for those who want high returns. However, the trend is to favor sectors that have historically survived downturns.
Here are the top ETFs that investors will be looking to in 2025.
Health Care Select Sector SPDR Fund XLV
Expense Ratio: 0.088%
Top holdings Eli Lilly, UnitedHealth Group and Johnson & Johnson
In uncertain times, healthcare remains one of most reliable sectors. An aging US population ensures a sustained demand for medical and pharmaceutical services.
By 2050, it is expected that the number of Americans aged 65 and older will increase to 82 millions, up from 58,000,000 in 2022.
XLV is the largest healthcare ETF. It offers exposure to 60 industry giants. This includes a mix of pharmaceutical companies, insurers and healthcare providers.
The ETF has proven to be resilient despite the market volatility. It is a good defensive investment.
iShares MSCI Poland ETF
Expense Ratio: 0.6%
Top holdings: PKO Bank Polski, Orlen SA
Poland has recovered from the turmoil in the region caused by the Russia/Ukraine conflict to become one of the most powerful economies in Europe.
The EU predicts that Poland’s GDP will grow by 3.6 per cent in 2025. This is faster than most of the rest of the world.
EPOL is a great way to get exposure to Poland’s largest financial and energy companies.
Poland is a strategic growth market as the EU reduces its reliance on external partners and strengthens economic ties with the bloc.
VanEck Gold Miners (GDX) ETF
Expense Ratio: 0.51%
Focus : Gold mining companies
Gold has historically been a safe haven asset. In 2025, gold mining stocks outperformed the metal.
GDX invests indirectly in gold-mining companies, which offer indirect exposure to price movements.
Since January, the ETF’s performance has increased 18%, reflecting the demand for defensive assets in an uncertain global market.
Gold is a good choice for investors looking for stability, given its role in the past as an inflation hedge.
VanEck Uranium and Nuclear ETF
Expense Ratio: 0.61
Constellation Energy Corp. is the top holding .
Nuclear energy is a favorite of both Republicans and Democrats.
Nuclear power is a reliable source of energy that does not suffer from the problems associated with intermittent energy.
NLR invests primarily in uranium producers and nuclear engineering companies, as well as utilities with significant nuclear power operations.
Sector poised for long term expansion as demand for cleaner, more efficient energy increases.
ARK Fintech Innovation ETF
Expense Ratio: 0.75
Shopify and Coinbase Global are among the top holdings.
Fintech is one of the few high risk sectors that attracts investor interest, despite the fact that defensive assets dominate the market.
Recent developments in Washington have fueled optimism for digital finance and blockchain technologies.
ARKF focuses its investments on disruptive financial technologies. It holds positions in e-commerce, crypto exchanges, and mobile payments providers.
The ETF has risen 70% in six months and 12.4% by 2025, reflecting renewed interest in fintech innovation.
This post Five ETFs you can invest in to hedge policy uncertainty in 2025 could be modified as new information becomes available.
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