From Yahoo Finance: 2025-06-17 20:00:00

Market volatility in 2025 creates entry points for exchange-traded fund investors as trade tensions drive down stock and bond prices. Nasdaq-100 fell 24%, S&P 500 dropped 19%, allowing investors to buy quality companies at reduced prices. Major economic changes benefit overlooked investments, creating opportunities for diversified ETF strategies.

Shift away from mega-cap stocks this year leads to half of all S&P 500 companies outperforming the index. Active ETF managers have more opportunities to identify winners and losers. Small-cap ETFs look appealing after recent selloff, offering entry points into quality smaller firms at discounted valuations.

International ETFs attract investor interest as European and emerging markets stocks trade at lower valuations compared to U.S. shares. U.S. and foreign stocks alternate leadership every eight years, with U.S. stocks leading for 14 consecutive years. Corporate bond markets experience dramatic swings, pushing investors toward bond ETFs that diversify across different debt types.

Bond ETFs focused on asset-backed debt show defensive characteristics during stock market decline, outperforming corporate bonds during market corrections. Volatility presents opportunities for selective ETF investors in U.S. and international markets as policy uncertainty persists through 2025.

Read more: Market Mayhem Opens New ETF Entry Points