Zachary Evens: This year, we’re expecting over 1,000 new ETFs to hit the market in the U.S. But, honestly, many of these are pricey and may not offer solid long-term benefits. With so many options flooding in, pinpointing worthwhile long-term ETFs is becoming quite a challenge.
Still, some new ETFs are making waves. Those that offer competitive fees, come from reliable companies, and are managed well can definitely find a place in many investors’ portfolios. The ETFs discussed here not only meet those criteria but also adhere to established investment processes. Let’s take a look.
3 great new ETFs from 2025
- Vanguard Total Inflation Tracking ETF VTP
- Capital Group High Yield Bond ETF CGHY
- RACWI US ETF Louth
First up is the Vanguard Total Inflation Protect Securities ETF, trading under the ticker VTP. It boasts a Silver Morningstar Medalist rating and charges just 5 basis points annually.
This is a straightforward passive ETF that captures nearly the entire TIPS market. The index includes TIPS with a maturity of at least one year and a par value of no less than $300 million. It weights selected bonds by market value while excluding those held by the Federal Reserve, which helps represent what’s available to the public.
The strategy is not new; there’s a long-standing index that dates back close to 20 years. In fact, the iShares TIPS Bond ETF (TIP) follows the same index. However, Vanguard’s version stands out since it has lower fees—5 basis points versus the iShares ETF’s 18 basis points. It’s a small detail, but, hey, in the realm of low-risk, low-return it can really add up.
Next, we have the Capital Group High Yield Bond ETF, ticker CGHY. This actively managed ETF charges 39 basis points a year and shares a Silver Morningstar Medalist rating too.
Although this ETF is relatively new, its sister mutual funds have been around for quite some time. For instance, the American High-Income Trust AHITX utilizes a similar strategy and has seen great returns, especially after shifting its focus to mid-quality high-yield bonds in 2020. Since both the ETF and mutual fund target the same segment, investors should expect comparable performance.
Capital Group has carefully entered the ETF space, successfully launching several ETFs designed similarly to its established mutual funds under the American Funds umbrella. This ETF might just be another success story for them.
Finally, there’s the RACWI US ETF, which trades as RAUS and falls into the Large Blend Morningstar category. Launched in September, it’s set to cost 15 basis points once its fee waiver ends—but for now, it’s free!
Similar to the other two, this ETF adheres to an investment process that has been successfully used for years. Research Affiliates is a newer player in the ETF game, but its strategies have been widely utilized. This ETF is their second and latest offering.
It’s worth noting that RAUS doesn’t simply replicate the previously released Research Affiliates Fundamental Index. While it still considers a stock’s fundamentals, it prioritizes holdings by market capitalization. For instance, the Schwab Fundamental US Large Company ETF (FNDX) tracks a fundamental-weighted index, intending to concentrate on smaller yet valuable risk factors compared to RAUS. So, while RAUS aims for returns that align more closely with the market, it might lean slightly towards higher quality in its portfolio.
As we’ve seen, new doesn’t always equal untested. Each of these ETFs comes from companies with long histories of successful investment strategies. They may represent fresh interpretations of established concepts, but all offer potential long-term benefits. In a landscape teeming with questionable new ETFs, these three stand out as solid options.
