Best ETFs for New Investors in 2025
You’re here because you want the best ETFs for new investors in 2025… but you also don’t want to accidentally pick something weird, overpriced, or TikTok-hyped that you don’t understand. Same.
I still remember my first “real” investing moment: sitting on the floor, laptop balanced on a laundry basket, googling acronyms like I was cramming for a test I didn’t sign up for. I wanted a plan that felt boring in the best way. Like brushing your teeth. Like setting the coffee maker the night before. The kind of routine that quietly changes your life.
So this guide is that. Not a Wall Street flex. Not “25 hot funds.” Just the ETFs that make sense for beginners, how to choose them, and how to build a portfolio you won’t hate during the next scary market dip.
30-second summary (save this + come back later)
- Start with 1–3 broad, low-cost ETFs (total US stock, international stock, and bonds).
- For most beginners, the “best” ETF is the one you’ll keep buying for years.
- Watch the expense ratio, avoid niche/leveraged ETFs, and don’t chase last year’s winners.
- A simple starter combo: total US stocks + international + (optional) bonds.
- Automate contributions, then go live your life.
ETFs, explained like a human.
An ETF (exchange-traded fund) is basically a basket of investments (stocks, bonds, sometimes both) that trades like a stock. You can buy one ETF and instantly spread your money across hundreds—or thousands—of companies.
Why beginners love ETFs:
- Diversification fast. One click can get you exposure to a whole market.
- Low costs. Many broad index ETFs have tiny fees compared to most actively managed funds.
- Easy to manage. You can keep things simple and still be “properly invested.”
A quick vocabulary cheat sheet:
- Expense ratio: The annual fee the fund charges (lower is usually better).
- Index ETF: Follows a set index (like the S&P 500) instead of trying to “beat the market.”
- AUM: Assets under management—bigger often means more liquid, but bigger isn’t automatically better.
- Liquidity/spread: How easily it trades without paying “extra” through wider bid/ask spreads.
The beginner ETF framework (pick from these 4 buckets)
Instead of starting with tickers, start with the job your ETF needs to do. In 2025, beginners typically need some mix of:
1) US stocks (your growth engine)
This is usually the “core” for Americans because it’s simple, diversified, and historically growth-oriented over long periods.
2) International stocks (your diversification seatbelt)
International stocks can lag for long stretches… until they don’t. This bucket helps reduce the “all my money depends on one country” risk.
3) Bonds (your shock absorbers)
Bonds are the part that can keep you from panic-selling when stocks get ugly. Especially helpful if you’re closer to a goal (house down payment, starting a business, etc.).
4) “Extras” (nice, but not required)
REITs, small-cap tilt, dividend ETFs, sector ETFs. These are optional—fun spice, not the meal.
If that framework already feels calmer than “choose the best ETF,” good. That’s the point.
Best core ETFs for new investors in 2025
Below are beginner-friendly ETFs that show up again and again in real-world portfolios because they’re broad, low-cost, and easy to understand.
Vanguard Total Stock Market ETF (VTI)
If you want one ETF that covers “basically the entire US stock market,” VTI is the classic choice. It holds large, mid, and small US companies in one fund.
Why it’s beginner-friendly:
- Broad US diversification in a single ticker
- Low cost (Vanguard lists VTI’s expense ratio at 0.03%)
- Easy “core holding” for a long-term portfolio
When VTI makes the most sense:
- You want a one-fund US stock core
- You’re building a long-term retirement-style portfolio
- You don’t want to guess which sector wins next
Vanguard S&P 500 ETF (VOO)
VOO focuses on the S&P 500—large, established US companies. It’s slightly less “total market” than VTI, but still very diversified.
Why beginners choose VOO:
- Simple concept: “Own the biggest US companies.”
- Very low cost (VOO’s expense ratio is widely listed at 0.03%)
- Great as a core fund for long-term growth
VTI vs VOO for beginners?
- If you want “total US market,” lean VTI.
- If you want “largest US companies,” lean VOO.
- Either can work. The bigger mistake is buying neither because you’re stuck in analysis paralysis.
Vanguard Total International Stock ETF (VXUS)
VXUS gives you exposure to thousands of non-US companies, including both developed and emerging markets. If you’ve only ever invested in US stocks, this is the “okay, now we’re actually diversified” move.
Why VXUS is useful:
- Broad global diversification outside the US
- Often used as the international leg of a simple portfolio
- Vanguard lists VXUS with an expense ratio of around 0.05%
Who should consider VXUS:
- Anyone building a long-term portfolio who doesn’t want 100% US risk
- People who already own VTI or VOO and want global balance
- Investors who want one simple international fund
Vanguard Total Bond Market ETF (BND)
BND is a broad US bond fund that can help smooth out the ride. It’s not flashy. That’s a compliment.
Why beginners like BND:
- Broad exposure to investment-grade US bonds
- Often used as the bond core in a simple portfolio
- Commonly listed with an expense ratio of around 0.03%
When BND is a good idea:
- You want less “stomach drop” when stocks fall
- You’re investing for a goal within ~5–10 years
- You know you panic-sell when things get scary
Simple starter portfolios (copy/paste friendly)
This is where investing gets real. Pick a setup that matches your personality and timeline—not your mood today.
Portfolio A: The “I’m brand new” 1-fund setup
- 100% VTI or 100% VOO
Best for:
- New investors with long-term horizons
- People who need something simple to stay consistent
- Anyone starting with small amounts
Trade-off:
- No international diversification
- No bonds to soften stock drops
Portfolio B: The classic 2-fund “global stocks” setup
- 70–90% VTI (or VOO)
- 10–30% VXUS
Best for:
- Long-term investors who want global diversification
- People who can handle stock volatility
- Anyone who wants “set it and forget it” vibes
Trade-off:
- Still 100% stocks (expect big swings)
Portfolio C: The beginner 3-fund portfolio (the calmest popular option)
- 60–80% VTI (or VOO)
- 10–30% VXUS
- 10–40% BND
Best for:
- First-time investors who want a smoother ride
- Anyone investing toward medium-term goals
- People who know they’ll sleep better with bonds
Trade-off:
- Bonds can reduce volatility, but may also reduce long-run growth compared to 100% stocks
A decision tree (so you stop second-guessing)
Use this quick “if/then” path:
- If your goal is 10+ years away and you can handle big swings:
- Choose Portfolio B (2-fund global stocks).
- If your goal is 5–10 years away or you know you’ll panic during crashes:
- Choose Portfolio C (3-fund).
- If you’re starting with $25–$200/month and want the simplest start:
- Choose Portfolio A (1-fund), then add VXUS later.
- If you’re juggling debt + investing and need mental simplicity:
- One core ETF first. Consistency beats complexity.
What most people miss (and it costs them real money)
They confuse “best ETF” with “best recent performance.”
The best-performing ETF last year is often a disappointment next year. Chasing performance is how beginners accidentally build a portfolio that’s basically a pile of yesterday’s headlines.
Instead:
- Pick broad-market ETFs with a clear role.
- Build a habit.
- Let time do the heavy lifting.
They ignore expense ratios because “it’s only 0.20%”
That tiny fee compounds. And you pay it every year—quietly, whether you’re happy with the fund or not.
Rule of thumb for beginners:
- For core index ETFs, try to stay around 0.03%–0.10% when possible.
- Higher fees aren’t always “bad,” but they should earn their keep.
They buy too many ETFs too soon.
Owning 12 ETFs doesn’t automatically mean you’re diversified. Sometimes it just means you own the same mega-cap stocks 12 times, plus extra confusion.
A clean beginner portfolio is usually:
- 1–3 ETFs
- Rebalanced once or twice a year
- Boring enough to survive stress
ETF pitfalls to avoid in 2025 (especially as a beginner)
Leveraged and inverse ETFs
If you see “2x” or “3x,” or anything that sounds like it profits when the market falls, pause. These products can behave very differently from what people expect over time and are usually not meant for long-term beginners.
Ultra-niche thematic ETFs
Space robotics blockchain clean water quantum AI… yes, cool. Also, often expensive, concentrated, and more “story” than strategy.
A better approach:
- Put 90–95% in broad core ETFs.
- If you must scratch the thematic itch, keep it small and treat it like “fun money.”
Dividend obsession
Dividends can be great, but beginners sometimes chase high yields and accidentally buy funds full of slower-growth companies or riskier yield traps.
Better beginner move:
- Focus on total return (growth + dividends), low costs, and diversification.
How to buy ETFs (without making it a whole personality)
Here’s the simplest way to do it:
- Open a brokerage account (or use the one you already have).
- Decide your portfolio (A, B, or C above).
- Set up an automatic schedule (weekly, biweekly, or monthly).
- Buy your ETFs consistently, even when the news is loud.
- Rebalance 1–2x per year (or when allocations drift a lot).
Beginner tip that saves stress:
- If you’re investing long-term, stop checking daily price moves. Seriously. That habit is emotional sabotage.
Tools and resources (with contextual Amazon picks)
Investing is mostly behavior. The “tools” that help you stick with it are weirdly low-tech sometimes.
A basic personal finance book (so you don’t feel lost)
A readable money book helps you stay calm when the market gets spicy, and your group chat suddenly turns into doomsday economists.
- Consider searching for a beginner-friendly “investing for beginners” paperback here: investing for beginners book.
A simple budget planner (because consistency beats intensity)
If you don’t know what you can invest each month, you’ll keep stopping and starting.
- A physical planner can be surprisingly motivating: a budget planner for the month.
A “set it and forget it” tracker for your portfolio
You don’t need 14 spreadsheets, but a one-page tracker can help you rebalance without spiraling.
- Look for an investment tracker notebook: investment tracker notebook.
A mini case note (the messy human version)
A friend once told me, “I’m waiting until the market settles.” That was in a year when headlines were basically sirens. They waited. And waited. Then the market jumped on some random Tuesday, and they felt dumb and rushed in… and then it dipped again, and they felt dumb again.
So we did the least dramatic thing possible:
- Picked a simple 2-fund portfolio (US + international).
- Set $50/week on autopilot.
- Agreed not to touch it for 12 months except to glance at it once a month.
It wasn’t exciting. It was relieving. And the relief is the whole point—because when investing feels manageable, you keep going.
Advanced beginner tips (that feel like cheating, in a good way)
Use “contribution rebalancing.”
Instead of selling one ETF to buy another, aim your new money toward the one that’s fallen behind. It’s simpler and can reduce taxes in taxable accounts.
Rebalance with a guardrail
Try this:
Rebalance when an allocation drifts more than 5% from target (example: your 20% international becomes 26% or 14%).
This keeps you from fiddling constantly.
Keep your “portfolio rules” in writing.
Literally write:
- What you buy (tickers)
- Your target percentages
- When you rebalance
- What you won’t buy (leveraged, meme-y, ultra-niche)
It sounds silly until a rough week hits and your brain turns into a raccoon in a trash can.
Conclusion (ethical CTA, no weird pressure)
The best ETFs for new investors in 2025 aren’t secret—they’re the broad, low-cost building blocks you can hold for years without needing to babysit them. Pick a simple portfolio, automate it, and permit yourself to be a beginner.
If you want, copy one of the starter portfolios above into your notes app and commit to it for 12 months. Then come back and tell people (honestly) what was harder: choosing the ETFs… or sticking with them when life got loud.
Frequently Asked Questions about Best ETFs for New Investors in 2025
1) What are the best ETFs for new investors in 2025 with little money?
Broad index ETFs like the total US stock market or S&P 500 ETFs are popular because one purchase gives instant diversification. Start with one core ETF and automate small buys.
2) Should a beginner buy VTI or VOO in 2025?
Either can work as a core holding. VTI is broader (total US market), while VOO focuses on the S&P 500; the bigger win is picking one and staying consistent.
3) Do beginners really need international ETFs like VXUS?
Not “need,” but international exposure can reduce single-country risk over decades. Many simple portfolios include a slice of international stocks for balance.
4) Is a 3-fund portfolio still good in 2025?
Yes—US stocks + international stocks + bonds is still a clean, understandable approach. It’s popular because it’s simple and covers the basics.
5) What’s a good ETF portfolio for a 25-year-old beginner?
Often, a mostly-stock mix works for long horizons, like 80–90% stocks and 10–20% bonds (or even 100% stocks if they can handle volatility). The “right” mix is the one they’ll stick with.
6) What’s a good ETF portfolio for someone investing for a house in 5 years?
Many people reduce stock risk for shorter timelines by adding bonds or holding more cash-like options. Consider a more conservative allocation to avoid being forced to sell stocks during a downturn.
7) How many ETFs should a beginner own?
Usually, 3 is enough. More ETFs can create overlap and confusion without adding meaningful diversification.
8) What expense ratio is considered “low” for ETFs in 2025?
For core index ETFs, many investors aim for roughly 0.03%–0.10% when available. The main idea is to keep core holdings cheap.
9) Are dividend ETFs good for beginners?
They can be, but chasing high yields can backfire. Beginners often do better focusing on broad diversification and total return first.
10) Are bond ETFs like BND safe?
Bond ETFs are generally less volatile than stock ETFs, but they still move in price and can lose value, especially when rates change. They’re better viewed as stabilizers, not guaranteed “no-risk” holdings.
11) Should beginners buy sector ETFs (like tech or energy) in 2025?
Sector ETFs can be concentrated and more volatile. Many beginners are better off building a strong core first, then adding small “tilts” only if they understand the trade-offs.
12) What’s the best ETF strategy for monthly investing?
Pick a simple allocation, buy on a schedule, and rebalance occasionally. Monthly investing works best when it’s automatic and boring.
13) Is it smart to wait for a market crash before buying ETFs?
Waiting can keep you on the sidelines indefinitely. A steady schedule (dollar-cost averaging) often helps beginners invest without trying to time the market.
14) What’s the difference between an index fund and an ETF?
An index fund is the strategy (tracking an index). An ETF is the “container” that trades during the day like a stock; many ETFs are index funds.
15) Can I hold ETFs in a Roth IRA and a taxable account?
Yes, many people hold similar ETFs across accounts. The best placement depends on taxes, goals, and how often you’ll trade (ideally, rarely).
