From “Made in USA” to “Japan’s true revival”, “go nuke,” and “selective India,” the key ETF themes for 2025 are going to be all about navigating the ripple effects of Donald Trump’s economic strategies.
And it’s gold that emerges as a standout play –– hedging against the volatility of his unpredictable political moves. Here are the ETFs to keep an eye on next year:
$AIRR
The First Trust RBA American Industrial Renaissance ETF has got small and midcap industrials, exactly the kind of companies that’d benefit from Trump’s tariff policy proposal. Almost 10% of trade is subject to protectionism, according to Bank of America, and he’d do anything to boost Made in USA products.
$KBWB
With rate cuts slowing and Trump’s more relaxed regulatory stance, it’s double delight for US banks. Higher interest rates are a classic win for banks, boosting their interest income. Morgan Stanley is all in — jumping on the bandwagon back in October, upgrading the sector and labeling it as a cyclical sweet spot.
So yeah, for banks, inflation coming back is all milk and honey. Plus, higher M&A activity, and lower taxes should also support bank stocks heading into next year.
Read more: Gold vs S&P 500: 2024’s heavyweight fight is going down to the wire
$GDX
With central banks hoarding, global debt soaring, and smart investors diversifying, the floor for gold just keeps rising. A golden hedge against dollar dips and inflation zips.
What’s even better is buying the ETF as it’s got companies that pay dividends. What’s more, it’s been trading at a discount to actual gold for the past five years –– so you can benefit further as it catches up in value. Which it should sooner rather than later, going by history.
$EWJ
Let’s leave the Trump-effect alone for a bit. Japan’s seen as the winner among country ETFs, according to BofA analyst Masashi Akutsu. The bank’s analysts also say 2025 will mark a “new normal” for corporate reforms, and point to share buybacks being another factor to boost returns.
Akutsu sees Japan returning a cool 11% next year –– just behind LatAm equities in terms of best upside.
$EPI
The WisdomTree India Earnings Fund is a tad better than just buying Indian stock index ETFs, because it’s got companies that have the best earnings profile –– we’re talking consistent profits and strong cashflow. This group has outperformed the index’s 9% average gain by 2.5 percentage points over the last 10 years.
Read more: Wall Street’s 2024 faceplant: The year all its predictions got smoked
$URA
This uranium ETF provides access to the entire nuclear energy value chain, including the mineral itself. With AI-driven data centers devouring energy at levels traditional grids can’t handle, nuclear power — seen as clean, reliable, and low-maintenance — is the hot new thing.
The numbers don’t lie. Nuclear and uranium funds now boast $6.3 billion in assets, eclipsing all other clean-energy funds combined. Crazy, right?
$MCHI
And as for China, which is shaping up to be the biggest victim of Trump’s trade war, BofA analyst Winnie Wu says things will get worse before they get better. She’s got a simple tip: once Chinese stocks drop 10%-15%, buy them and hold them long term.
Overall, it’s shaping up as an America First 2025! With the economy not showing any sign of a slowdown, the road’s clear for the US to keep hitting new highs. The big question is whether India or Japan will be able to steal some of that shine.
Finally, aside from China, we didn’t get into detail about the risks. Here’s a cool list from Torsten Slok, Apollo’s chief economist, giving his rundown of the risk outlook:
Edited by Tim Hume. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
