Take the iShares Digital Security ETF (LSE:LOCK), HANetf Future of Defence ETF (LSE:NATP), and iShares Core MSCI Europe ETF (LSE:SMEA) for instance. These fantastic funds have risen between 11% and 42% since 1 January.

I’m convinced they can keep surging, too, which is why I’ve bought them in my own portfolio. But what could drive them even higher? Let’s take a look.

Booming sector

The iShares Digital Security ETF’s leapt 11% in 2025 as the sector outlook has steadily improved. Major cyber attacks this year alone, like those that crippled production at Jaguar Land Rover and (more recently) stole sensitive Foreign Office data, underline the importance of having robust online security.

Threat levels are only going to increase, as state-backed hackers and AI-assisted attacks grow in number. Statista analysts expect average annual market growth of 5.9% between now and 2030. If true, funds like this should deliver strong long-term returns.

This iShares ETF right now holds shares in 110 different companies. I think this diversified approach is essential — it can still fall if major holdings experience systems failures (as we saw with Cloudflare in November). But the severity of any single setback like this is spread across the fund, limiting the risk of sharp price falls.

Doubled in price

The HANetf Future of Defence fund’s been one of the best-performing defence sector ETFs in recent times. Thanks to a brilliant 42% rise in 2025, total returns have leapt to 127% over a five-year horizon.

The fund — which holds 60 different global stocks — provides exposure to classic defence stocks like BAE Systems and Lockheed Martin. However, it also has significant holdings in cybersecurity stocks including Cisco and Palantir, reflecting the rising role of cyberspace in global warfare. I’m especially excited by this characteristic for the reasons described above.

This ETF could climb further as NATO nations hike defence spending amid growing geopolitical uncertainty. That’s despite the problem of rising government debts and their potential impact on arms budgets.

Euro star

The iShares Core MSCI Europe ETF is up 25% since 1 January, reflecting strong gains across UK and European stock markets. Demand for lower-priced continental companies has grown as investors seek out value opportunities.

Can the fund keep delivering enormous returns, though? I’m convinced it can, and not just because European shares continue to offer strong value after years of underperformance. Fears over an AI bubble continue to grow, which I feel could continue to drive market rotation out of US shares.

This fund holds shares in a wide range of companies (403 in all), which limits exposure to any one region or sector. Some of its major holdings include ASML, AstraZeneca, Deutsche Telekom, and Rolls-Royce.

Though it’s denominated in euros — which leaves me exposed to exchange rate volatility — I expect this fund to keep delivering impressive returns for my SIPP.

The post 3 incredible ETFs I can’t stop buying for my SIPP! appeared first on The Motley Fool UK.

AI stocks like Nvidia, Palantir, Meta, and Alphabet have plunged, grabbing the financial headlines. But the broader market is sinking too, as expectations of a December US interest rate cut fade. Poor Chinese economic data overnight hasn’t helped matters.

Could we now be on the cusp of a market meltdown?

What next?

There’s an enormous amount of macroeconomic and geopolitical uncertainty still out there. And it’s not just the issues I’ve described above that are spooking markets.

Global tariffs — and the possibility of fresh trade-related flare-ups — have repeatedly shaken stock markets in 2025. Surging government debts and political turbulence in North America and Europe are also testing traders’ nerves, as are signs of resurgent inflation.

Yet economic conditions are never perfect, and this hasn’t stopped global stock markets from surging over time. The FTSE 100 has overcome many problems, from banking crashes and Brexit to a global pandemic, to hit new records just this week.

Guessing the near-term direction of share prices is often a fool’s errand. Today it’s no different. But history shows us two things: one, that stock markets do crash periodically (roughly every six years, in fact).

And two, it pays to be prepared. Setting yourself up for a stock market crash can be key to building long-term wealth.

Here’s what I’m doing

A step I’ve taken to protect myself is by creating a diversified portfolio. This includes holding cash in savings accounts, alongside having exposure to bonds and precious metals.

The majority of my capital is tied up in shares in my Stocks and Shares ISA and Self-Invested Personal Pension (SIPP). However, I’ve taken a diversified approach to spread the risk, holding companies in various sectors and regions.

Owning stocks as varied as Coca-Cola HBC, Aviva, HSBC, and The Renewables Infrastructure Group helps me balance growth over time with protection from downturns.

To boost my diversification still further, I’ve bought the iShares Core MSCI Europe ETF (LSE:SMEA) in my SIPP. It’s packed with 1,009 shares in total, spanning industries as varied as financial services, healthcare, consumer goods, industrials, utilities, and information technology.

This isn’t the only reason I’ve bought the exchange-traded fund (ETF), however. Like any equities-based product, it’s highly vulnerable to a broader stock market crash. However, valuations across European equity markets are low, which could limit the scale of any falls it experiences.

Since 2015, this iShares ETF has delivered an average annual return of 8.5%. Right now, I’m confident of further strong growth as the rotation from US shares continues.

Seize the day

As well as holding a diversified portfolio, I’m building a list of stocks to buy in the event of a possible market crash. This way, I’ll be ready to strike and use some of the cash I have on account to buy some bargains.

Quality shares also tend to fall sharply during a broader market correction. While past performance isn’t always a reliable guide, those who seize the opportunity and snap them up can supercharge their long-term returns.

The post Worried about a stock market crash? Consider these power plays… appeared first on The Motley Fool UK.

Slashing allowances aren’t a plan I’m especially impressed by. I think a carrot rather than a stick approach is better on matters of personal finances.

That said, if it helps people make substantially more cash for retirement, that may not be a bad thing. Fresh research from IG Group this week underlines the possible benefits that nudging people towards the stock market can have.

A £9k boost

According to the investing platform, “redirecting excess cash into investing could improve returns by over £9k per person across five years“.

In total, halving the Cash ISA allowance could provide savers with more than £7bn if this cash was reinvested in the stock market, IG said.

The broker found that roughly 2.8m Cash ISA users save more than £10,000 each year. Meanwhile, YouGov data shows that 28% of this group would invest any money above the new allowance in a Stocks and Shares ISA.

IG said that “combining these figures, [our] analysis estimates potential additional returns of £7.2bn over five years for this group of around 784,000 savers — equating to over £9.1k per saver“.

These figures are based on industry forecasts for UK interest rates over the next five years, alongside historical returns from global stock markets.

Here’s what I’m doing

I’m one of millions of people who use both a Cash ISA and a Stocks and Shares ISA. I also purchase shares, trusts and funds in a Self-Invested Personal Pension (SIPP).

The vast majority of my spare cash is put to work on the stock market. For me, this strategy’s a no-brainer. The average investing ISA has delivered a 9.6% return since 2015, according to Moneyfacts. For the cash product, this sits way back at 1.2%.

I realise that my decision carries higher risk. But the way I spread my capital — my portfolio provides exposure to thousands of stocks the world over — means I’m not putting my cash in excessive danger as I chase better returns.

One low-risk asset I’ve just bought is the iShares Core MSCI Europe UCITS ETF (LSE:SMEA). As with any shares-based fund, it can fall when broader equity markets suffer. However, its diversification across dozens of industries and countries provides significant long-term risk benefits.

In total, this iShares product holds shares in 1,011 different companies. I think it could continue outperforming as investors rotate from US shares and economic conditions in Europe improve.

Since 2015, it’s delivered an average annual return of 8.4%, far above what even the best-paying Cash ISA has delivered in that time.

This is one of more than thousands of ETFs UK investors can choose from today. With even more individual stocks and investment trusts available, share pickers have a significant opportunity to target decent returns without having to take on excessive risk.

The post Here’s how ISA changes could give you a tasty £9,000 cash boost… appeared first on The Motley Fool UK.

Interest in European shares has rocketed in 2025 as investors look for better value than US shares currently offer. The FTSE 100 is up 14% in the year to date, slightly outpacing the S&P 500‘s 13.8% gains.

Germany’s DAX has risen an even-more impressive 21%, though performance has been mixed in places. France’s CAC40 is up 10%, though a volatile political landscape hasn’t helped.

To plug the gap in my portfolio, I decided last week to open a position in the iShares Core MSCI Europe UCITS ETF (LSE:SMEA), which has provided an average annual return of 16% since October 2022.

Here’s why.

Strong gains expected

Evidence is growing othat both retail and professional investors are losing confidence in the long-term outlook for US shares. This in turn is sparking interest in other regions, and especially companies that are closer to home.

According to BNP Paribas,

the change in economic and geopolitical policies from the US administration, combined with a significant increase in European defence and infrastructure spending, have led many investors to reassess Europe’s investment potential

Can European stock markets continue to climb, though? There’s no guarantee, but a broad selection of analysts strike a confident tone.

Goldman Sachs expects the STOXX Europe 600 index to provide a total return of 8% over the next 12 months.

Other City forecasters are predicting even greater gains. UBS is tipping an 11% total return by the end of 2026. Deutsche Bank reckons the STOXX Europe 600 will rise 15% by the end of next year.

A top ETF

I plumped for the iShares Core MSCI Europe fund to capitalise on this opportunity.

One reason is its focus on the MSCI Europe index. Unlike the STOXX Europe 600, it only contains large and mid-cap companies, meaning it may perform more robustly in what remain uncertain economic times.

There’s plenty of ETFs geared towards MSCI Europe. But this iShares product is the largest and most liquid out there, with total assets under management of €12.6trn. It also has one of the lowest ongoing management charges, at 0.12%.

What’s more, this iShares product is the only European fund to beat the broader MSCI Europe index every year since 2015.

It may not have as many holdings as a STOXX Europe 600-based ETF. But at 402, it still owns a diversified enough pool of stocks to help holders effectively manage risk and capture a huge selection of growth and income opportunities.

Holdings are as varied as software developer SAP and drugmaker Novartis, to consumer goods giant Nestlé and banking star HSBC.

It’s possible my ETF could disappoint if trade wars intensify or inflationary pressures grow, pulling share prices lower. But given the strong regional outlook, I think the possibility of further significant returns outweighs the risk.

The post 16% annual return! Why I chose this fund over other Euro ETFs appeared first on The Motley Fool UK.