Best Exchange-Traded Funds (ETFs) For June 2025

Why Choose ETFs for Long-Term Investment?

ETFs are appealing for long-term investors because they offer several advantages over individual stocks:

• Diversification: ETFs provide exposure to a broad range of assets, reducing the risk of investing in individual stocks or bonds.
• Lower Costs: Most ETFs have low expense ratios compared to mutual funds, making them more cost-effective for long-term investors.
• Liquidity: ETFs are traded like stocks on exchanges, meaning they can be bought and sold at any time during market hours.
• Tax Efficiency: Due to their unique structure, ETFs are often more tax-efficient than mutual funds, especially for investors holding them in taxable accounts.

Given these advantages, many investors choose best ETFs to buy and hold as part of their long-term strategy to build wealth.

Top ETFs for June 2025

The following chart compares the best ETFs to buy and hold in June 2025, focusing on different sectors, risk profiles, and long-term growth potential.

1. Vanguard Total Stock Market ETF (VTI)

The Vanguard Total Stock Market ETF (VTI) is one of the most popular best ETFs to buy and hold due to its broad exposure to the U.S. stock market. This ETF tracks the CRSP US Total Market Index, which includes small-, mid-, and large-cap stocks, providing diversification across a wide array of industries. With an expense ratio of just 0.03%, VTI is extremely cost-effective, making it a top choice for long-term investors. Over the past five years, it has delivered an annualized return of 12.5%, making it a solid option for those seeking steady growth in the U.S. market.

2. SPDR S&P 500 ETF (SPY)

The SPDR S&P 500 ETF (SPY) tracks the performance of the S&P 500 Index, which includes 500 of the largest companies in the U.S. This ETF is often regarded as one of the best ETFs to buy and hold for investors looking for broad exposure to large-cap U.S. stocks. With a slightly higher expense ratio of 0.09%, SPY has historically provided strong returns, averaging 10.8% annually over the last five years. It’s a great option for investors looking to capture the performance of the U.S. economy’s leading companies.

3. iShares MSCI Emerging Markets ETF (EEM)

For those looking to diversify globally, the iShares MSCI Emerging Markets ETF (EEM) is a solid choice. This ETF provides exposure to emerging markets such as China, India, and Brazil. Although its expense ratio is higher at 0.68%, EEM offers significant growth potential in regions with rapidly expanding economies. The 5-year return has averaged 5.5% annually, and while the risk level is higher due to the volatility in emerging markets, the potential rewards make it an appealing option for long-term investors with a higher risk tolerance.

4. Vanguard Dividend Appreciation ETF (VIG)

The Vanguard Dividend Appreciation ETF (VIG) focuses on high-quality dividend-paying stocks, making it an excellent choice for income-focused investors. It tracks the NASDAQ US Dividend Achievers Select Index, which includes companies with a track record of increasing dividends for at least 10 consecutive years. With an expense ratio of just 0.06%, VIG is a low-cost way to gain exposure to dividend growth stocks. It has provided an annualized return of 10.2% over the past five years, making it an attractive option for investors seeking both growth and income.

5. Schwab U.S. REIT ETF (SCHH)

Real Estate Investment Trusts (REITs) offer investors a way to gain exposure to the real estate market without having to directly invest in properties. The Schwab U.S. REIT ETF (SCHH) tracks the Dow Jones U.S. Select REIT Index and offers a diversified portfolio of real estate stocks. With an expense ratio of 0.07%, SCHH is one of the most cost-effective REIT ETFs. It has delivered an annualized return of 8.6% over the last five years, making it a solid option for those looking to add real estate exposure to their portfolio.

6. iShares Core U.S. Aggregate Bond ETF (AGG)

For conservative investors, the iShares Core U.S. Aggregate Bond ETF (AGG) is an excellent option. It tracks the Bloomberg U.S. Aggregate Bond Index, which includes a broad range of investment-grade bonds. With an expense ratio of 0.04%, AGG is one of the lowest-cost bond ETFs available. It has provided an annualized return of 3.2% over the past five years, making it a good option for those seeking stability and income in a low-risk asset class.

7. Invesco QQQ Trust (QQQ)

The Invesco QQQ Trust (QQQ) is a popular ETF that tracks the NASDAQ-100 Index, which includes 100 of the largest non-financial companies on the NASDAQ stock exchange. Known for its heavy weighting in technology stocks, QQQ is one of the best ETFs to buy and hold for investors seeking exposure to high-growth sectors. With an annualized return of 15.6% over the past five years, QQQ has significantly outperformed the broader market, although it carries a higher risk due to its tech-heavy focus.

8. Vanguard FTSE All-World ex-US ETF (VEU)

The Vanguard FTSE All-World ex-US ETF (VEU) is a great option for investors looking to diversify their portfolios internationally. This ETF provides exposure to global stocks outside of the U.S., including both developed and emerging markets. With an expense ratio of just 0.08%, VEU is a low-cost way to gain international exposure. It has delivered an annualized return of 6.9% over the past five years, making it a solid choice for global diversification.

9. iShares TIPS Bond ETF (TIP)

The iShares TIPS Bond ETF (TIP) provides exposure to Treasury Inflation-Protected Securities (TIPS), which are designed to protect against inflation. With an expense ratio of 0.19%, TIP has delivered an annualized return of 4.1% over the last five years. This ETF is ideal for conservative investors who are concerned about inflation eroding the value of their portfolios.

10. ARK Innovation ETF (ARKK)

For those willing to take on higher risk in exchange for higher potential returns, the ARK Innovation ETF (ARKK) offers exposure to disruptive technologies and innovation. The ETF focuses on companies in fields like genomics, robotics, and artificial intelligence. Although it has a higher expense ratio of 0.75%, ARKK has historically delivered impressive returns, averaging 17.4% annually over the past five years. However, it’s important to note that ARKK’s performance can be volatile, making it best suited for investors with a high-risk tolerance.

Conclusion

When choosing the best ETFs to buy and hold in June 2025, it’s essential to consider your investment goals, risk tolerance, and time horizon. Whether you’re looking for broad market exposure with ETFs like VTI and SPY, or seeking higher growth potential with more specialized options like ARKK and EEM, there are plenty of options available. By carefully selecting a mix of ETFs that align with your financial objectives, you can build a diversified portfolio designed to thrive in the years to come.