Jasmine Birtles
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Best Large Cap ETFs to Buy in 2025
Ruby Layram
5th Jun 2025
Large cap ETFs make it possible to invest in a collection of large cap stocks, without needing to pick out individual companies! Large cap stocks tend to offer greater stability, strong long-term performance, and often pay reliable dividends, making them a popular choice for investors who want exposure to well-established businesses like Apple, Microsoft, and Amazon without the stress of stock-picking.
Whether you’re building a long-term portfolio or just starting out, large cap ETFs are a simple, low-cost way to tap into the power of the world’s biggest and most successful companies.
10 Best Large-Cap ETFs to Buy in 2025
Below is an overview of the best large-cap ETFs to buy in 2025.
| ETF Name | Ticker | 2024 Performance | 5-Year Annual Return | Expense Ratio | Description |
|---|---|---|---|---|---|
| Schwab U.S. Large-Cap Growth ETF | SCHG | 35.0% | 19.8% | 0.04% | Tracks the Dow Jones U.S. Large-Cap Growth Index, offering exposure to large and growing American companies. |
| iShares Russell Top 200 Growth ETF | IWY | 34.9% | 20.3% | 0.20% | Focuses on America’s largest companies, expected to grow at an above-trend pace. |
| Vanguard Russell 1000 Growth ETF | VONG | 33.2% | 18.9% | 0.08% | Invests in a diversified group of large U.S. growth companies. |
| iShares Russell 1000 Growth ETF | IWF | 33.1% | 18.8% | 0.19% | Includes large- and mid-cap U.S. growth stocks with higher valuations and expected growth. |
| Vanguard Mega Cap Growth ETF | MGK | 32.9% | 19.4% | 0.07% | Targets the largest growth companies in the U.S. |
| Invesco QQQ Trust | QQQ | 25.6% | 20.0% | 0.20% | Tracks the Nasdaq-100 Index, focusing on the largest non-financial companies on the Nasdaq. |
| Motley Fool 100 Index ETF | TMFC | 1.6% | 18.5% | 0.50% | Invests in the top 100 stocks recommended by The Motley Fool analysts. |
| Invesco S&P 500 Momentum ETF | SPMO | 10.6% | 21.3% | 0.13% | Tracks S&P 500 stocks with high momentum scores. |
| Invesco S&P 500 High Beta ETF | SPHB | 0.2% | 19.1% | 0.25% | Includes S&P 500 stocks with the highest beta, indicating higher volatility. |
| Pacer U.S. Cash Cows 100 ETF | COWZ | -4.4% | 17.6% | 0.49% | Focuses on companies with high free cash flow yields within the Russell 1000 Index. |
What Are Large-Cap ETFs?
Large-cap ETFs invest in companies with a market capitalisation exceeding $20 billion. These companies are typically industry leaders with established business models, making them attractive for investors seeking stability and consistent returns.
Are large-cap ETFs a good investment?
There are a number of reasons that large-cap ETFs are popular amongst investors.
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Diversification: Gain exposure to a broad range of leading companies across various sectors.
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Stability: Large-cap companies often have resilient earnings and lower volatility compared to smaller firms.
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Dividend Potential: Many large-cap firms offer regular dividends, providing an income stream.
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Cost-Effective: ETFs generally have lower expense ratios than mutual funds, enhancing net returns.
While large-cap ETFs are generally seen as more stable, they’re not without risks.
Market fluctuations can still impact even the biggest companies, especially during economic wobbles!
Additionally, some large-cap ETFs may be heavily concentrated in specific sectors or dominated by a few major companies, which can increase risk if those areas underperform. And although large-cap stocks tend to be reliable, they may not offer the same explosive growth potential as smaller, emerging companies.
Also read: The best growth ETFs for UK investors
How to Choose an ETF
I know what you’re thinking. Large-cap ETFs sound great, but how do I decide which ones to invest in?
Here are a few things to consider that will make your decisions a little easier!
1. Look at the Index It Tracks
Most ETFs are designed to follow a specific index, like the S&P 500 or the Nasdaq 100. This index determines which companies the fund holds, so it’s important to understand what you’re buying into.
If you want exposure to the biggest household names in the US, an ETF that tracks the S&P 500 might be ideal. If you’re after tech-heavy growth, something that tracks the Nasdaq 100 could be more your style.
2. Check the Expense Ratio
The expense ratio is the annual fee the ETF charges to manage your money. It’s expressed as a percentage of your investment, and even small differences can add up over time.
Ideally, you want something low- under 0.5% is generally considered good, and many top ETFs charge much less.
3. Understand the Holdings
Not all large-cap ETFs are created equal. Some may concentrate on high-growth stocks, while others might focus on high dividend payers or undervalued “cash cows.”
Have a look at the top holdings and the fund’s overall strategy to see if it aligns with your goals.
Also read: The best dividend stocks to buy in 2025
4. Consider Performance History
Past performance isn’t everything, but it can give you a sense of how the ETF behaves during different market conditions.
Look at both recent returns and long-term performance to get the full picture. Compare this with the index it’s tracking to see how closely it matches.
5. Diversification and Sector Exposure
Even within the large-cap universe, sector exposure can vary significantly. Some ETFs might be heavy in tech, others in financials or healthcare.
A well-diversified ETF gives you broad exposure across industries, which can help reduce risk if one sector hits a rough patch.
6. Dividend Yield
If you’re investing for income, check whether the ETF pays dividends and how much.
Large-cap companies often return cash to shareholders, so many large-cap ETFs offer a regular income stream on top of potential growth.
7. Liquidity and Fund Size
ETFs with higher trading volumes and larger assets under management tend to be more liquid, meaning it’s easier to buy and sell them without affecting the price too much.
Larger funds are also generally considered more stable.
Choosing the right large-cap ETF comes down to your personal goals. Do you want growth, stability, income, or a mix of all three?
Once you know what you’re looking for, finding the right fund becomes much simpler.
Final Thoughts
Investing in large-cap ETFs is a great way to gain exposure to big players, without needing to worry about picking individual stocks.
After reading this guide, I recommend doing a bit of digging to find ETFs that align with your individual investing strategy and goals.
Although large cap ETFs are more stable than small-caps, they still come with risk!
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Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence. When investing your capital is at risk.
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