The Top 10 Investments That Pros Recommend to Their Clients in 2025

Despite ongoing unease about the economy and market volatility, most financial planners are feeling optimistic about the economy this year, according to the 2025 Trends in Investing Survey.

Conducted by the Journal of Financial Planning and the Financial Planning Association, the survey collected answers from 195 finance professionals who offer investment advice.

Looking to the near future, these professionals have a bearish outlook. But many polled advisors say they have more optimism for the longer term. With that in mind, here’s how they’re guiding their clients through it all.

1. Exchange-traded funds

Financial advisors who use or recommend this investment with clients: 93.28%

Also known as ETFs, exchange-traded funds combine elements of stocks and mutual funds. They can be easily traded, like stocks, and offer the benefit of a diversified portfolio, like mutual funds. What’s more, they typically have low fees and don’t require a minimum investment, which makes them a popular investment vehicle.

2. Cash and equivalents

Financial advisors who use or recommend this investment with clients: 82.09%

Cash is sometimes considered a safe way to store money since it’s immune from stock market crashes. The problem with cash is that inflation will eat away at its purchasing power. That’s why you want to invest at least some of your money elsewhere.

3. Non-wrap mutual funds

Financial advisors who use or recommend this investment with clients: 70.15%

Within a mutual fund, you’ll find shares of many different companies. That diversification makes mutual funds less risky than individual stocks.

Non-wrap mutual funds are those that anyone can purchase, and we’ll talk about more complex mutual fund wrap programs in just a moment.

4. Individual stocks

Financial advisors who use or recommend this investment with clients: 60.45%

The idea of owning a piece of your favorite company can be enticing. But make no mistake: Individual stocks can be volatile, with prices fluctuating wildly depending on the news of the day. That may be why not all financial planners advise buying them.

5. Individual bonds

Financial advisors who use or recommend this investment with clients: 51.49%

Just as you can buy individual stocks, you can buy individual bonds. While U.S. Treasury bonds may be best known, investors can also purchase municipal bonds, corporate bonds and other similar securities.

6. Separately managed accounts

Financial advisors who use or recommend this investment with clients: 43.28%

Separately managed accounts are typically geared toward those with a high net worth. An asset management firm helps investors select a mix of securities based on their financial goals. These portfolios can offer diversification similar to what you would find in a mutual fund or ETF, but investors own individual securities instead.

7. Fixed annuities

Financial advisors who use or recommend this investment with clients: 38.06%

A fixed annuity provides a stream of income in exchange for a large upfront payment. As their name suggests, fixed annuities have a fixed rate, which results in predictable payments.

8. Mutual fund wrap programs (tie)

Financial advisors who use or recommend this investment with clients: 35.82%

Typically offered by full-service brokerages, mutual fund wrap programs can provide access to advice and funds not otherwise available, with the costs “wrapped” into a single or fixed fee.

But beware of those fees. They can be higher than those for other investments, and the U.S. Securities and Exchange Commission issued an alert in 2021 about improvements that could be made in these funds’ disclosures.

8. Variable annuities (tie)

Financial advisors who use or recommend this investment with clients: 35.82%

Nearly one-third of financial planners use, or have advised their clients to purchase, a variable annuity. These insurance products involve making an upfront payment, or a series of regular payments, that will result in a stream of income. That income could start immediately or, in the case of a deferred annuity, at a later date.

10. Indexed annuities

Financial advisors who use or recommend this investment with clients: 31.34%

An indexed annuity is an insurance product that lets your money grow based on the performance of a stock market index, like the S&P 500. These types of annuities typically guarantee a minimum return.

In a strong market, you have the potential to earn more. However, depending on your contract, the total amount you can earn in good years may be limited.