From Global Growth to Tech Titans: ETFs that Shape Your Financial Future

Hi Reader,

Welcome to The Money Series, and if you are new here, thank you for signing up. Personal Finance can feel ambiguous and overwhelming, but I am here to help simplify the journey.

Last week, I explained a few key things to look out for when investing in Exchange Traded Funds. If you missed it, you can catch up here.

This week, I’m diving deeper.

With thousands of equity ETFs available, choosing where to begin can feel overwhelming. So, I’ve highlighted four beginner-friendly ETF types to consider in 2025, along with some of their pros and cons to help you build a thoughtful, long-term strategy.

🌍 Global ETFs. Global ETFs give you exposure to thousands of companies across the world in a single fund. These are ideal for passive investors who want diversification by geography and sector. Most global funds are weighted by market capitalization, so U.S. companies still dominate, but you'll also get exposure to large businesses in Europe, Asia, and emerging markets. Think of this as a one-stop shop for broad global growth. Popular examples of global ETFs include Vanguard’s FTSE All-World UCITS ETF and iShares MSCI ACWI UCITS ETF.

Below is a list of global funds that I got from the ETF screener on justetf.com

🇺🇸S&P 500 ETF. The S&P 500 is one of the most popular and well-tracked indices, giving you access to the 500 largest U.S. companies. These ETFs typically come with low fees, high liquidity, and tight bid-ask spreads, making them great for beginners. With the S&P 500, investors have many options, as almost every investing company has its own version of the ETF.

🌏Emerging Markets ETFs. Want to bet on the future of high-growth regions like India, China, Brazil, or Taiwan? Emerging Markets ETFs offer that opportunity. These economies represent the majority of the global population and are expected to drive future consumption and innovation. That said, note that these funds are more volatile and typically come with higher fees due to their complexity and geographic spread. Speaking of volatility, see the 5-year chart of Vanguard’s Emerging Markets UCITS ETF, for example:

💻NASDAQ 100 ETFs. These ETFs track 100 of the largest non-financial companies on the NASDAQ, dominated by big tech names like Apple, Nvidia, and Microsoft. These have historically delivered strong returns thanks to the tech boom (past performance does not guarantee future returns), but they’re also more concentrated and can be quite volatile. If you're drawn to innovation and can handle the swings, this might be for you.

Bonus category:

🔍Thematic ETFs. Aside from the 4 funds highlighted above, there are specific ETFs that give access to companies in the recent hot topics. From AI to semiconductors, there are ETFs tracking niche industries and megatrends. While exciting, these are less diversified, more volatile, and highly concentrated, making them better suited for investors with a higher risk tolerance.

Remember: Many global or large-cap ETFs already hold the stocks included in the rest of the ETFs highlighted, just in smaller weights.

The ETF space offers something for everyone, however, clarity is important. As an investor, it is important to be clear about your investment objectives and avoid chasing past performance by buying funds that have recently outperformed. Again, I believe time is your best asset when it comes to investing. Aim to stay invested for at least 3 – 5 years to ride out the noise and benefit from long-term growth.

Reflect on This:

• Would you prefer the broad diversification of a global ETF, or are you more drawn to the potential outperformance of a more concentrated fund?

Reply to this email to drop me a note or ask your questions on ETF investing.

Till next week, I am rooting for you, money-ly!

Dee

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Disclaimer: This does not constitute financial advice. Please conduct your research or consult your financial advisor for important financial advice.