Five ETFs to invest in to hedge against policy uncertainty in 2025

As economic and political uncertainties mount, investors are shifting their strategies toward risk-off investments—assets that provide stability and resilience during volatile periods.

With significant policy shifts expected in Washington and ongoing global economic concerns, exchange-traded funds (ETFs) focused on defensive sectors, stable dividends, and geopolitical advantages are gaining popularity.

While artificial intelligence and fintech remain attractive risk-on plays for those seeking high returns, the broader trend favors sectors that have historically weathered downturns.

Here are some of the top ETFs that investors are turning to in 2025.

Health Care Select Sector SPDR Fund (XLV)

Expense ratio: 0.08%

Top holdings: Eli Lilly, UnitedHealth Group, Johnson & Johnson

Healthcare remains one of the most reliable sectors in uncertain times, with an aging US population ensuring sustained demand for medical services and pharmaceuticals.

By 2050, the number of Americans over 65 is projected to grow to 82 million, up from 58 million in 2022.

XLV, the largest healthcare sector ETF, provides exposure to 60 industry leaders, offering a balanced mix of pharmaceutical giants, insurers, and healthcare providers.

The ETF has remained resilient despite market volatility, making it a preferred defensive investment.

iShares MSCI Poland ETF (EPOL)

Expense ratio: 0.6%

Top holdings: PKO Bank Polski, Orlen SA

Poland has emerged as one of the strongest economies in Europe, rebounding from the regional turmoil caused by the Russia-Ukraine conflict.

The EU forecasts Poland’s GDP to grow by 3.6 percent in 2025, outpacing much of the world.

While many US investors may not be familiar with Polish stocks, EPOL provides exposure to the country’s leading financial and energy companies.

As the EU strengthens economic ties within the bloc and reduces reliance on external partners, Poland is positioned as a strategic growth market.

VanEck Gold Miners ETF (GDX)

Expense ratio: 0.51%

Focus: Gold mining companies

Gold has traditionally been a safe-haven asset, and gold mining stocks have outperformed the metal itself in 2025.

GDX invests in companies that extract and manage gold reserves, offering indirect exposure to the precious metal’s price movements.

Since January, the ETF has surged 18%, reflecting increased demand for defensive assets as global markets face uncertainty.

Given its historical role as an inflation hedge, gold remains a strong choice for investors seeking stability.

VanEck Uranium and Nuclear ETF (NLR)

Expense ratio: 0.61%

Top holdings: Constellation Energy Corp.

Nuclear energy has emerged as a bipartisan favorite, appealing to both Republicans backing energy security and Democrats focused on reducing carbon emissions.

Unlike wind and solar, nuclear power provides a stable energy supply without the challenges of intermittency.

NLR invests in uranium producers, nuclear engineering firms, and utilities with major nuclear power operations.

As demand for cleaner and more efficient energy grows, the sector is poised for long-term expansion.

ARK Fintech Innovation ETF (ARKF)

Expense ratio: 0.75%

Top holdings: Shopify, Coinbase Global

While defensive assets dominate the market, fintech remains one of the few high-risk sectors attracting investor interest.

Recent developments in Washington, including a more tech-friendly stance from the White House, have fueled optimism in digital finance and blockchain technology.

ARKF focuses on disruptive financial technologies, with holdings in e-commerce, cryptocurrency exchanges, and mobile payment providers.

The ETF is up 12.4% in 2025 and has gained 70% in the last six months, reflecting renewed enthusiasm for fintech innovation.

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