Are you searching the market for investment opportunities that deliver results? Could your current portfolio use a boost, more consistency, and perhaps even more edge?

If so, you're not alone. With inflation, interest rate fluctuations, and a lot of market noise, many investors are turning to ETFs (Exchange-Traded Funds) as a more stable and transparent way to grow their wealth. But not just any ETF will do. In today's environment, high-performing ETFs with consistent yearly returns are stealing the spotlight—and for good reason. Let's explore which ETFs are catching attention in 2025 and why they deserve a spot on your watchlist.

SCHD – Schwab U.S. Dividend Equity ETF

2024 Return: 17.4%

Expense Ratio: 0.06%

This ETF has become a favourite among investors seeking stable growth and consistent income. SCHD focuses on high-quality U.S. companies with a strong history of paying dividends. Think household names that keep churning profits no matter the economic climate.

Why It Performs:

• Focuses on solid fundamentals (return on equity, dividend growth, etc.)
• Often includes names like PepsiCo, Merck, and Verizon
• Low turnover, meaning fewer taxable events

Best For: Conservative investors who want income and long-term stability without giving up growth.

QQQ – Invesco QQQ Trust

2024 Return: 32.6%

Expense Ratio: 0.20%

Tech stocks made a strong comeback in 2024, and QQQ rode that wave perfectly. This ETF tracks the Nasdaq-100 and provides exposure to tech giants such as Apple, NVIDIA, and Microsoft—companies that continue to dominate their respective industries.

What Makes It Stand Out:

• Intense concentration in high-growth, high-margin companies
• Benefitted from the AI boom, cloud services, and semiconductors
• High liquidity and trading volume

Best For: Growth-focused investors who can stomach short-term volatility in exchange for long-term upside.

XLF – Financial Select Sector SPDR Fund

2024 Return: 19.8%

Expense Ratio: 0.10%

As interest rates normalised in 2024, financials regained their momentum. Banks, insurance companies, and asset managers saw more substantial earnings, and XLF delivered accordingly.

What’s Inside?

• Big players like JPMorgan Chase, Goldman Sachs, and Berkshire Hathaway
• Exposure to both traditional banks and fintech

Best For: Those looking for cyclical plays with solid earnings power, especially during economic recovery periods.

VGT – Vanguard Information Technology ETF

2024 Return: 36.1%

Expense Ratio: 0.10%

If you're betting on the future of tech beyond just the most prominent names, VGT deserves a look. It goes broader than QQQ, offering a more diversified take on the tech world, including software, hardware, and semiconductor companies.

Why It Wins:

• Includes companies like Adobe, Texas Instruments, and ServiceNow
• More balanced tech exposure (not just the mega caps)
• Long-term growth potential from AI, automation, and digital infrastructure

Best For: Tech believers who want sector-wide exposure, not just the “Magnificent Seven.”

VOO – Vanguard S&P 500 ETF

2024 Return: 25.3%

Expense Ratio: 0.03%

This is the classic choice—and for good reason. VOO tracks the S&P 500, essentially serving as a mirror of the overall U.S. market. It gives you exposure to 500 of the largest U.S. companies in a single move.

Why It Still Works:

• Broad diversification
• Rock-bottom fees
• Long-term average return of 10%+, historically

Best For: Investors of all kinds—from beginners to professionals—who want an easy, low-risk way to build wealth over time.

IHI – iShares U.S. Medical Devices ETF

2024 Return: 21.7%

Expense Ratio: 0.39%

The healthcare sector might not be the flashiest, but medical tech is quietly delivering strong returns. IHI focuses on U.S.-based companies that develop and produce medical devices. As the global population ages, demand for healthcare services continues to grow.

Why It Matters:

• Companies like Abbott Labs and Medtronic are steady performers
• Defensive sector with innovation potential
• Not as correlated to general economic swings

Best for: Investors seeking long-term growth with a lower correlation to tech and finance.

SMH – VanEck Semiconductor ETF

2024 Return: 42.4%

Expense Ratio: 0.35%

Semiconductors are everywhere—from phones to cars to data centres. And in 2024, with AI and edge computing surging, semis outperformed nearly every sector. SMH was one of the biggest winners.

Who’s In It?

• NVIDIA, AMD, TSMC, and ASML are some top holdings
• A potent mix of U.S. and international players

Why It Took Off:

• AI investment exploded
• Chips are foundational to future tech
• Global supply chains became more stable

Best For: Those who want direct exposure to the tech backbone powering AI, automation, and data analytics.

Why Investors Love ETFs Right Now

Before we jump into specific names, it’s worth asking: Why ETFs?

ETFs offer built-in diversification, low fees, and easy access to entire sectors or themes—all wrapped in a single trade. And the best part? They’re transparent. You know what you’re buying. With many mutual funds still lagging in both performance and reporting, ETFs are now the go-to option for smart, efficient investing.

But here's the catch: there are over 3,000 ETFs in the U.S. market alone. Which ones are working?

What To Watch For in the Next 12 Months

If you're thinking about jumping into one of these ETFs, timing always matters. Here are a few things to keep in mind:

Interest Rate Trends

ETFs with significant exposure to banks and growth stocks are particularly sensitive to interest rate changes.

Election Year Volatility

U.S. markets may fluctuate in response to policy announcements, particularly in the healthcare and energy sectors.

Global Tensions

Keep a close eye on supply chains, particularly in the tech and semiconductor sectors.

Building A Smarter Portfolio With ETFs

So, where do you go from here? ETFs like QQQ and SMH offer massive upside, but come with short-term swings. Funds like SCHD or VOO provide more consistency and peace of mind. The best portfolios mix both worlds. Diversifying across sectors, risk levels, and income strategies helps you stay balanced, regardless of where the market turns.

If you're serious about growing your portfolio with innovative, efficient moves, high-performing ETFs with strong yearly returns deserve a place in your investment strategy. Just remember—past performance isn't a guarantee. But patterns do tell a story. And in 2025, these ETFs are writing the kind of story many investors want to read.