George Soros Bets Big on These 3 ETFs in 2025

George Soros’s investment firm made a substantial commitment to the SPDR S&P 500 ETF Trust (SPY) at the beginning of 2025, opening a new position worth $69.2 million comprising 118,000 shares. The billionaire further demonstrated his confidence by adding another 2.5% to this holding during the second quarter. This ETF tracks the S&P 500 index and invests in 503 large-cap U.S. companies, providing broad exposure to the American equity market with a particular emphasis on information technology, which represents 35.29% of the fund’s allocation.

The SPY’s performance in 2025 has been impressive, generating a 14.64% return despite market volatility. This strong showing builds on its historical track record of 24.76% returns over three years and 16.33% over five years. The fund’s top holdings include the so-called ‘Magnificent Seven’ technology giants such as Nvidia, Microsoft, Tesla, and Meta Platforms, which have driven significant gains in the technology sector throughout the year. With an expense ratio of just 0.0945% and additional allocations to financials (13.30%) and consumer discretionary (10.36%), SPY represents a cost-effective way to gain diversified exposure to America’s largest companies.

Soros increased his stake in the Invesco QQQ Trust (QQQ) by 2.1% during the second quarter of 2025, building on his existing position in this Nasdaq 100-tracking ETF. QQQ holds 100 large-cap stocks with approximately 60% of its assets allocated to the technology sector, followed by consumer discretionary and healthcare. The fund’s concentration in growth-oriented companies is evident in its top 10 holdings, which include the Magnificent Seven and account for over 50% of the total fund.

The performance metrics for QQQ are particularly striking, with the ETF generating a 20.05% year-to-date return and a 32.30% return over three years. Even more impressive is its five-year track record, where it has delivered total returns exceeding 100%. The fund’s net asset value has increased by 19.58% in 2025 alone and 30% over the past six months, significantly outpacing broader market indices. With a 0.20% expense ratio and quarterly rebalancing, QQQ offers exposure to leading AI companies and other innovative businesses that are driving technological advancement.

In a strategic move that provides balance to his large-cap holdings, George Soros added the iShares Russell 2000 ETF (IWM) to his portfolio last year with 751,800 shares, representing 3.41% of his overall portfolio. He further increased this position by 2.1% in the second quarter of 2025. This ETF tracks an index composed of small-cap U.S. companies, offering exposure to 2,000 different stocks with none having a weightage higher than 1%, ensuring broad diversification across the small-cap segment.

The IWM has generated a total return of 10.64% over the past year, with more substantial gains of 52.39% over three years and 71.79% over five years. Its net asset value has increased by 11.19% year-to-date and 29.60% over the past six months. The fund’s sector allocation differs significantly from the technology-heavy SPY and QQQ, with its highest concentrations in industrials (17.85%), financials (17.51%), and healthcare (16.14%). This small-cap focus provides Soros with exposure to companies that trade at lower valuations than their large-cap counterparts while offering potential for significant growth as economic conditions improve.

George Soros’s simultaneous investments in these three ETFs reveal a sophisticated diversification strategy that spans market capitalizations and sectors. While the SPDR S&P 500 ETF provides stability through exposure to America’s largest companies and the Invesco QQQ Trust offers growth potential through technology leadership, the iShares Russell 2000 ETF adds small-cap exposure that could benefit from economic recovery. This balanced approach demonstrates how even billionaire investors utilize ETFs to achieve targeted market exposure while managing risk.

The timing of these investments is particularly noteworthy given the challenging economic backdrop of 2025, characterized by tariff uncertainty and government shutdown concerns. Soros’s increased positions in all three ETFs during the second quarter suggest confidence in their continued performance despite market headwinds. For retail investors, these moves offer valuable insights into how experienced fund managers navigate volatile markets while maintaining exposure to both established market leaders and emerging growth opportunities across different market segments.