Prediction: This Will Be the Top-Performing Index ETF in 2025

Meanwhile, small caps historically have outperformed growth stocks during periods of declining rates. If small-caps do outperform in 2025, the Vanguard Russell 2000 ETF (NASDAQ: VTWO) or one of its growth and value versions -- the Vanguard Russell 2000 Growth ETF (NASDAQ: VTWG) or the Vanguard Russell 2000 Value ETF (NASDAQ: VTWV) -- are great options to be among the best-performing index ETFs in 2025. Growth stocks dominated the market in 2024, as the so-called "Magnificent Seven" helped lead the market higher this year.