Top 10 Stocks and ETFs Poised to Outperform in September 2025

With the Federal Reserve initiating its rate-cutting cycle on September 17, 2025, by lowering rates by 25 basis points, markets are shifting toward sectors sensitive to lower borrowing costs, such as technology, real estate, small caps, and consumer discretionary. This environment favors growth-oriented assets and those with floating-rate debt exposure. Based on recent analyses from financial experts, we've compiled a forward-looking list of 10 recommendations (a mix of 10 stocks and 10 ETFs) expected to benefit from these dynamics through the end of September and into Q4. Selections prioritize high-conviction picks with strong upside potential, momentum, and sector tailwinds.

Below, we've incorporated recent performance data (YTD) for context on their trajectory.

Top 10 Stocks to Watch in September 2025

These stocks have shown strong year-to-date performance in 2025, indicating potential to continue outperforming shortly:

1. Robinhood Markets, Inc. (HOOD): +224% year-to-date with a 447% gain over 1 year; recent surge driven by S&P 500 inclusion and strong revenue growth. (TradingView)
2. Palantir Technologies (PLTR): +120 - 135% (YTD - September 2025 range) (TradingView)
3. Newmont Corp. (NEM): +99.9%
4. Seagate Technology (STX): +94.0%
5. GE Vernova (GEV): +86.4%
6. Western Digital (WDC): +78.3%
7. General Electric (GE): +65.0%
8. CVS Health (CVS): +63.0%
9. NRG Energy (NRG): +61.3%
10. Howmet Aerospace (HWM): +59.2%

Top 10 ETFs to Watch in September 2025

These ETFs have delivered strong returns over recent months and 2025 year-to-date, spanning sectors like gold mining, uranium, defense, AI, and blockchain:

Ranking Methodology

• YTD Performance: Based on reported or estimated returns for 2025 (as of September 2025). Higher returns rank higher. 
• AUM: Used as a tiebreaker or secondary factor, reflecting fund popularity and liquidity. 
• Data Sources: Where exact figures are unavailable, we’ve inferred performance based on sector trends (e.g., gold miners, semiconductors, defense) and historical context from the provided references. 
• Assumptions: For ETFs like EUAD and VIG, where 2025 YTD data is missing, we’ve used reported sector performance (e.g., defense up 73% YTD) or conservative estimates based on similar funds.

Ranked ETF Picks

1. VanEck Gold Miners ETF (GDX)

• YTD Performance: +80–115% (reported range for September 2025) (TradingView)
• AUM: ~$16.5B (estimated, based on historical size and 2025 inflows) 
• Rationale: Strong performance has been driven by rising gold prices and expanding miner profit margins. This fund tops the list not only based on its impressive returns but also due to its large assets under management (AUM), reflecting substantial investor interest. The heightened demand indicates that precious metals continue to be viewed as a reliable hedge against inflation in the current economic climate.
• VanEck Gold Miners ETF (GDX) is listed on both the NYSE Arca exchange (as GDX) and the Mexican Stock Exchange (BMV) (as GDX.MX).
• Final recommendation: Buy
• Confidence Level: High
• Expected time frame: Buy and hold for 3 months (targeting continued gold rally into year-end amid economic uncertainty)

Note on GDX vs GDXJ: GDX offers exposure to large-cap gold mining companies, while GDXJ focuses on small-cap, junior gold miners, which are generally more volatile and potentially offer higher returns but also higher risk. GDX tracks the MVIS Global Junior Gold Miners Index, whereas GDXJ follows the NYSE Arca Gold Miners Index, making GDXJ the more speculative choice for investors seeking higher leverage to the gold price.

Read More: Best Gold and Silver ETFs of 2025: Should You Buy Today? (September 2025 Edition)

2. Select Stoxx Europe Aerospace & Defense ETF (EUAD)

• YTD Performance: +73% (reported for defense sector in 2025) (TradingView)
• AUM: ~$933M (significant inflows reported in 2025) 
• Rationale: Exceptional YTD performance driven by rising European defense budgets and geopolitical tensions. Smaller AUM reflects its niche focus but doesn’t detract from its momentum.
• Final recommendation: Buy
• Confidence Level: Medium
• Expected time frame: Buy and hold for 6 months (leveraging ongoing rearmament trends and sector momentum)

3. Global X Silver Miners ETF (SIL)

• YTD Performance: +54% (reported for 2025) 
• AUM: ~$1.2B (estimated, based on historical data and sector growth) 
• Rationale: Silver miners benefit from industrial and precious metal demand, but lower AUM and slightly weaker performance than GDX place it third. 
• Final recommendation: Buy
• Confidence Level: High
• Expected time frame: Buy and hold for 3 months (capitalizing on silver supply deficits and industrial demand surge)

4. VanEck Semiconductor ETF (SMH)

• YTD Performance: ~ +19–30% (reported range for 2025) (estimated, based on 24.1% annualized 10-year return and 2025 AI/tech strength) 
• AUM: ~$22B (estimated, based on historical growth and semiconductor demand) 
• Rationale: Strong AI-driven growth, with a 24.1% average annualized return over the past decade. Large AUM reflects investor confidence in semiconductors. (https://www.fool.com/investing/how-to-invest/etfs/etfs-to-buy/?msockid=1ba484345d776190309092615c886097)
• Final recommendation: Buy
• Confidence Level: Medium
• Expected time frame: Buy and hold for 6 months (positioning for recovery from recent selloffs and long-term AI growth)

5. Invesco QQQ Trust (QQQ)

• YTD Performance: +26% (reported for 2025, compared to VOO’s 20%) 
• AUM: $248.36B (as of August 2025) 
• Rationale: Outperforms broader markets due to tech-heavy Nasdaq-100 exposure. Massive AUM makes it a top choice for growth investors. (https://www.fool.com/investing/how-to-invest/etfs/etfs-to-buy/?msockid=1ba484345d776190309092615c886097)
• Final recommendation: Buy
• Confidence Level: Medium
• Expected time frame: Buy and hold for 3 months (benefiting from Nasdaq bull market and tech sector rebound)

6. Vanguard S&P 500 ETF (VOO)

• YTD Performance: +20% (reported for 2025) 
• AUM: ~$500B+ (largest ETF by AUM in August 2025) 
• Rationale: Solid performance and the largest AUM make it a cornerstone for broad-market exposure, though it trails tech- and sector-specific ETFs in YTD returns. (Fool.com)
• Final recommendation: Hold
• Confidence Level: Medium
• Expected time frame: Hold for 6 months (monitoring for potential short-term dips while maintaining long-term exposure to broad market stability)

7. Vanguard Total Stock Market ETF (VTI)

• YTD Performance: ~+18% (estimated, slightly below VOO based on broader market exposure) 
• AUM: ~$400B (second-largest ETF, trailing VOO)
• Rationale: Broad U.S. market exposure with slightly lower returns than VOO due to small- and mid-cap inclusion. Huge AUM ensures liquidity. (https://www.fool.com/investing/how-to-invest/etfs/etfs-to-buy/?msockid=1ba484345d776190309092615c886097)
• Final recommendation: Hold
• Confidence Level: Medium
• Expected time frame: Hold for 6 months (providing stable broad-market exposure while watching for mid- and small-cap recovery)

8. iShares Gold Trust (IAU)

• YTD Performance: +15% (reported for 2025) 
• AUM: ~$30B (estimated, based on historical size and gold’s safe-haven appeal) 
• Rationale: Lower returns than gold miners but offers stability as a physical gold ETF. Significant AUM reflects its popularity as a hedge. (https://sg.finance.yahoo.com/quote/VOO/)
• Final recommendation: Buy
• Confidence Level: Medium
• Expected time frame: Buy and hold for 3 months (serving as a safe-haven hedge amid ongoing market volatility)

9. iShares Bitcoin Trust (IBIT)

• YTD Performance: 15.53% (as of September 2025)
• AUM: $83.78 B
• iShares Bitcoin Trust (IBIT), Spot Bitcoin ETF from BlackRock is the largest spot Bitcoin ETF with a low expense ratio of 0.25%. 
• Its large AUM and institutional backing position it as the dominant player in the spot Bitcoin ETF market. 
• Final recommendation: Buy
• Confidence Level: Medium
• Expected time frame: Buy now (or on any dip to $107,000–$108,000) and hold for 3–4 weeks, targeting $118,000–$125,000 by end of September.

Read More: Best Bitcoin ETFs of 2025: Should You Buy Today?

10. ARK Autonomous Technology & Robotics ETF (ARKQ)

• YTD Performance: 26.55%
• Expense Ratio: 0.75%,
• AUM: $1.3 billion,
• 1-Year Return: 87.9%.
• Actively managed fund targeting autonomous vehicles, robotics, and AI innovations, with holdings like Tesla and UiPath for high-growth, forward-looking tech diversification.
• Final recommendation: Buy
• Confidence Level: Medium
• Expected time frame: Buy and hold for 3 months (capturing growth in AI and autonomous tech amid sector rebound)

Market Outlook Drivers

• The Federal Reserve's recent rate cut has boosted U.S. stocks to record highs.
• Robinhood's strong 2025 momentum is fueled by its expanding user base, a 59.4% revenue growth rate, and inclusion in the S&P 500, driving investor confidence. It reported 26.5 million funded customers and a robust Q2 earnings beat.
• Continued momentum in AI-related earnings is elevating technology stocks.
• Small-cap and value stocks remain attractive but undervalued, presenting opportunity.
• Gold and uranium-related ETFs benefit from supply-demand dynamics.
• Defense and blockchain ETFs remain favored for growth potential amid geopolitical and digital transformation themes.

This curated mix of high-growth stocks like Robinhood and diversified thematic ETFs provides balanced exposure to sectors poised for outperformance in September 2025.