NextFin news, On Friday, October 10, 2025, DBS Bank published a research report identifying the top-performing exchange-traded funds (ETFs) for the year 2025, focusing on sectors and assets benefiting from the US Federal Reserve's renewed rate-cutting cycle.
The report, dated October 7, 2025, outlines that the Federal Reserve has resumed easing monetary policy with expectations of further 25 basis point rate cuts by the end of 2025 and into 2026. DBS economists anticipate a non-recessionary environment supported by gradual Fed easing, robust capital expenditure driven by artificial intelligence and energy sectors, and fiscal stimulus measures.
DBS recommends investors focus on equities in Asia excluding Japan, citing ETFs such as the ICM ETF, as well as US technology and small- to mid-cap stocks represented by ETFs like QQQ and IWM. The bank also advises maintaining selective exposure to high-quality income-generating assets, including Singapore dollar investment-grade bonds and Singapore real estate investment trusts (REITs), exemplified by ETFs such as NIKIGCB and CLR.
Commodities remain a key area of interest, with gold and copper highlighted for their strong diversification benefits and structural demand drivers. The report notes that gold, in particular, has surged significantly in 2025, driven by dovish Fed policies and geopolitical uncertainties, making gold-backed ETFs like GLD attractive to investors.
The report underscores that the combination of lower interest rates and ongoing fiscal support creates favorable conditions for growth in technology sectors and real estate, while commodities benefit from structural demand and safe-haven appeal amid global uncertainties.
DBS Bank's research is accessible to its clients via the official DBS website, providing detailed insights and recommendations for portfolio positioning in the evolving macroeconomic landscape shaped by Federal Reserve policy shifts.
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