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.

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Take the following ETFs: L&G Gold Mining ETF (LSE:AUCP) and iShares Digital Security ETF (LSE:LOCK). These funds have enjoyed an excellent average annual return of 16.2% during the last five years.

The question is, can these popular products continue delivering excellent returns?

Striking gold

Gold’s stunning price surge has grabbed significant media attention in 2025. But the yellow metal’s rush to new record highs is no new phenomenon.

Indeed, gold’s on a multi-year bull run that’s driven funds like the L&G Gold Mining ETF through the roof. This particular product’s delivered an average yearly return of 19.1% over the last five years.

This reflects in large part the ‘leverage’ effect the fund benefits from. It’s risen more sharply than gold itself, reflecting the fact that miners’ profits can explode when gold prices increase.

In total, this fund holds shares in 36 different gold miners. This includes industry heavyweights like Newmont, Angico-Eagle, and AngloGold Ashanti. These are businesses with large project portfolios, a quality that spreads out (if not totally eliminates) the threat of production stoppages on overall returns.

Can gold prices continue rising, though? I think they can, supported by macroeconomic factors (like a depreciating US dollar, interest rate cuts, and trade tariffs). Growing geopolitical tensions could also drive the safe-haven commodity to fresh peaks.

Security guard

Concerns over whether an AI bubble has formed continue to weigh on technology stocks. One tech segment that I don’t think faces the same danger is cybersecurity.

This is why I’m confident the iShares Digital Security ETF can continue deliver stunning returns. Its average yearly return since November 2020 is 13.2%.

Cyberattacks are becoming more numerous and increasingly severe. The massive attack on Jaguar Land Rover that took a huge chunk out of Q3 GDP underlines the scale of the threat.

With bad actors increasingly using AI, and state-supported intrusions also becoming more commonplace, having robust online defences is becoming increasingly critical.

Reflecting this, analysts at Global Market Insights reckon the global cybersecurity market will more than double in size over the next decade, to $55bn.

The iShares Digital Security fund provides a well-diversified way for individuals to target this opportunity. It includes industry heavyweights like CrowdStrike, Cloudflare, and Palo Alto alongside smaller players. These are businesses with excellent brand power, strong records of innovation, and deep pockets for future R&D.

A high-profile systems failure can shatter a security provider’s prospects overnight. This fund, which has holdings in more than 100 different tech stocks, substantially reduces this risk for investors.

Information technology earnings can be highly cyclical. As such, returns from this iShares ETF could disappoint during economic downturns. But over the long term I expect it to continue outperforming.

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Spreading one’s capital over dozens, hundreds, or even thousands of shares protects returns from company-specific blow ups. What’s more, growth stocks can be prone to significant price swings, which a fund can soften thanks to that broad diversification.

Finally, an ETF offers a far simpler and less time-consuming route to investing in growth shares. Holdings are determined either by tracking a pre-set index or by an expert fund manager, saving investors the trouble of choosing individual stocks.

With this in mind, here are two top funds to consider this November. I hold both in my own portfolio.

Lock it down

Tech shares like Nvidia, Amazon, and Microsoft are getting a lot of love on high hopes for the artificial intelligence (AI) sector. Nvidia has in recent days become the first $5trn stock in history. It took out the $4trn milestone as recently as July.

There is a danger, though, that the sky-high valuations of some AI players leave them vulnerable. Others say these companies’ enormous growth potential merits their premium ratings. Still, a potential correction is worth bearing in mind.

For my money, a tech-focused ETF focused on cybersecurity shares could be a better option to consider. The iShares Digital Security ETF (LSE:LOCK) is actually the most recent fund I’ve purchased for my Self-Invested Personal Pension (SIPP).

With a price-to-earnings (P/E) ratio of 30.3 times, its valuation is far more attractive than some AI-based funds. The iShares Future AI & Tech ETF by comparison carries a heavier earnings multiple of 43.6.

Don’t go thinking that this digital security fund has poorer growth potential than its AI cousin, however. Holding 110 tech shares like Ciena, CrowdStrike, and Cloudflare, it’s actually delivered a superior average annual return of 11.7% during the last five years.

Returns may be bumpier during economic downturns. After all, tech shares are extremely cyclical entities. But I think long-term returns will continue to impress as the digital revolution rolls on and on, bringing a steady rise in the number and severity of online threats.

Case for the defence

I’ve also added the HANetf Future of Defence (LSE:NATP) fund to my SIPP in recent months.

As its name suggests, it invests in companies that make weapons and offers other services to global armed forces. But it does so with a twist — it holds stakes in cybersecurity businesses as well, allowing it to also leverage the phenomena I’ve just described.

Since its inception in July 2023, the fund’s risen an impressive 145% in value. During what’s been a period of rapid rearmament in the West (and particularly Europe), this is perhaps no surprise. I’m expecting it to continue surging, too, as NATO nations hike their defence-spending-to-GBP targets to 5% by 2035.

In total, the HANetf product is well diversified across 60 different companies. These include heavyweight pure-play defence firms like BAE Systems, Rheinmetall, and Safran, alongside specialised tech shares including Palo Alto.

It’s an approach that helps spread (if not eliminate) sector-wide dangers like supply chain problems and rising costs.

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Indeed, he said the technology could lead to a massive rise in fraud. This fear was stoked when the billionaire investor saw a deepfake video of himself, which impeccably mimicked his voice and mannerisms. 

In Buffett’s own words: “If I was interested in investing in scamming, it’s going to be the growth industry of all time.”

Huge future growth expected

Of course, the Oracle of Omaha is not suggesting we invest in AI-driven scamming. But here’s the thing. If this area is going to grow exponentially, then surely the anti-scam industry — cybersecurity — is its mirror image. 

In other words, where there’s a surge in AI-driven fraud, there’s also going to be a booming market for AI technologies that enhance cybersecurity measures.

And we see this with various industry forecasts. For example, Grand View Research says the global AI-related cybersecurity market is projected to reach $93.75bn by 2030, up from $25.35bn in 2024.

That’s a robust compound annual growth rate of 24.4%! 

Two surging stocks

In my own portfolio, I hold two stocks that I think are poised to benefit from this future growth. These are CrowdStrike and Cloudflare. 

CrowdStrike sells AI-powered software that detects and stops attacks in real time on laptops, servers, and cloud systems. As threats get more complex in future, demand for its tools should continue growing.

Meanwhile, Cloudflare protects the internet itself, keeping websites, apps, and networks safe from hacks and outages. Over 20% of the web already runs through Cloudflare’s network, and it recently rolled out a ‘pay-per-crawl’ model where websites can charge AI companies to access their content. 

However, both stocks are very expensive after rising substantially over the past year. If forthcoming quarterly results disappoint — on revenue or profit growth (or both) — then they could fall back sharply.

Let’s just say I doubt value-seeking Warren Buffett will be buying either anytime soon!

A basket strategy

For investors wanting exposure to the explosive growth potential of cybersecurity, I think it might be best to consider a basket approach. That is, instead of picking one or two stocks, an option could be the iShares Digital Security UCITS ETF (LSE:LOCK).

This exchange-traded fund (ETF) offers diversified exposure to 110 companies in the cybersecurity/digital-security ecosystem, including CrowdStrike and Cloudflare. The top three holdings are Ciena (up 119% year to date!), Arista Networks, and database firm MongoDB. 

Not only does this reduce single-company risk, but the ETF’s total expense ratio is just 0.40%, which is pretty modest for a thematic global fund. 

Performance has been very strong — up 87% over five years.

The ETF isn’t perfect, of course (no investment is). And one risk I see here is that the fund’s overall price-to-earnings is still quite high, at just over 30. So the product could underperform for a while if tech stocks sell off aggressively, which periodically happens.

Longer term, however, I would be flabbergasted if this ETF doesn’t do well. Companies and organisations of all sizes are being forced to beef up their cybersecurity.

With AI accelerating the threats, I expect the firms providing the solutions to grow ever larger.

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Given enough time, investing regularly in a Self-Invested Personal Pension (SIPP) could be one of the best ways for individuals to generate enough money for retirement. Generous tax breaks and government top-ups can supercharge long-term compounding, helping your savings to grow faster.

They mean that even those late to the investing party can build a large passive income for later on.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Building income

According to Shepherds Friendly, the average Briton has £514 at the end of each month to invest. Thanks to tax relief, those who use a SIPP to buy shares, funds and trusts have even more money to use to grow their wealth.

Tax relief on these products ranges from 20% for basic-rate taxpayers. That rises to 40% and 45% for those on the higher-rate and additional-rate tax bands respectively. For those investing around half a grand each month, that’s a tidy little bonus can make an enormous difference.

Let’s say we have a higher-rate taxpayer with that £514 to put in the stock market each month. Thanks to tax relief, the amount they actually have to invest is bumped up to £857.

If they started investing this at the age of 40, they could have £960,802 sitting in their SIPP by the time they reach 65. That’s based on an average annual return of 9%.

Such a sum would produce a passive income of just over £38,000 if our investor drew down 4% of their fund each year (£38,432, to be precise).

What would their SIPP look like without tax relief? After 25 years, they’d have a portfolio worth £576,257, which would produce a lower income of roughly £20,000 a year, based on the same withdrawal rate.

Targeting retirement wealth

But just how realistic is it for the average investor to achieve that 9% annual return and build a nest egg like this? History shows that patience and a balanced portfolio spread across the stock market can deliver solid long-term growth, though past performance isn’t a guarantee of future results.

I’ve increased my own holdings in diversified products like exchange-traded funds (ETFs) to grow my retirement fund. The iShares Digital Security ETF (LSE:LOCK) is one I’ve added to my SIPP in recent weeks.

During the past five years, it’s delivered an 11.7% average annual return, ahead of our target 9%.

A focus on cyclical tech shares means the fund could underperform during economic downturns. But I’m convinced it will continue delivering knockout returns over the long term as the cyber security market grows.

What’s more, with holdings in 110 different companies, this iShares ETF can harness this opportunity without overreliance on individual companies to drive growth.

For any SIPP investor targeting a large passive income, I think it’s worth serious consideration.

The post How much money do you need in a SIPP for a £38k passive income at 65? appeared first on The Twelfth Magpie.

Here are three that are worth exploring further.

UK property income

Let’s start with the iShares UK Property ETF (LSE:IUKP), which holds 33 UK real estate investment trusts (REITs). These include LondonMetric Property (logistics and retail warehousing), Primary Health Properties (GP surgeries and health centres), Unite (student accommodation), and Big Yellow (self-storage).

This sector remains out of favour due to higher interest rates. Rising borrowing costs restrict portfolio expansion plans, while investors can now find attractive yields in perceived safer havens like government bonds.

The fact that this ETF is concentrated on one sector makes it higher risk. Were the UK property market to enter a prolonged slump, this product would carry on underperforming (it’s already down 20% in five years).

On the plus side, though, investors are being offered a 4.5% dividend yield while they wait for a potential recovery. This should materialise as interest rates slowly but surely come down over the next couple of years.

Many [UK REITs] are trading at significant discounts to their net asset value, offering investors the chance to acquire real estate below its true value.

Kenneth MacKenzie, CEO of Target Healthcare REIT

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Asia Pacific dividends

To diversify an income stream away from UK property, an investor might also look at the Schroder Oriental Income Fund (LSE:SOI). This FTSE 250 investment trust offers broad exposure to dividend-paying companies across the Asia Pacific region.

What I like here is the trust offers a healthy level of geographic diversification. Mainland China accounts for just over 18% of assets, with the bulk of the rest made up of Taiwan, Australia, South Korea, Hong Kong, Singapore, and India.

Holdings include Samsung Electronics and Singapore Telecommunications, as well as DBS Group (Singapore’s largest bank). But it does have an outsized position in Taiwan Semiconductor Manufacturing. Any weakness in the Taiwanese chipmaking giant’s share price could negatively affect performance.

The rest of the ETF looks well-diversified, though. And over the next decade, I expect institutional investors to start allocating more capital outside the S&P 500. Asia should be a natural beneficiary of this — it’s worth noting that the trust has returned more than 20% year to date.

Finally, while Schroder Oriental Income Fund is trading at a record high, it still carries a decent 3.7% trailing dividend yield.

Cybersecurity trend

Finishing with more of a growth angle, we have the iShares Digital Security ETF (LSE:LOCK). This one holds 111 stocks across cybersecurity, including leading players like Arista Networks, MongoDB, Datadog, and Cloudflare.

As we’ve seen recently with high-profile hacks at Jaguar Land Rover and Marks and Spencer, beefing up cybersecurity is becoming a key operational necessity. And this spending is sure to be benefitting many of the ETF’s top holdings.

One risk I would highlight here is valuation. The average trailing price-to-earnings multiple of the ETF’s holdings is around 30. Were tech stocks to tumble, this would hit the fund.

However, to my mind, the cybersecurity trend just has so much further to run, especially as AI rapidly develops. I think investors should consider getting some portfolio exposure.

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Buying on the dip

Like billionaire investor Warren Buffett, I love purchasing high-quality shares when they’re going cheap. So I’ve used a recent drop in the Legal & General (LSE:LGEN) share price to top up my holdings.

The FTSE 100 financial services company is now the single-largest holding across my entire stocks portfolio.

My motivations for holding Legal & General shares largely reflect my appetite for passive income. The company’s long been one of the UK’s most dependable dividend stocks, growing annual payouts every year (bar 2020) since the start of the last decade,

And following recent price weakness, its forward dividend yield has nipped back above 9%, to 9.2%. To put that into context, the FTSE 100 average sits way back at 3.2%.

Dividends are never guaranteed, of course. But the firm’s impressive Solvency II capital ratio of 217% bodes well for the short-to-medium term, at least.

Over a longer horizon, I think earnings and dividends could rise strongly as Legal & General leverages its immense brand power in growing markets like asset management, pensions and insurance. I’m especially excited by its opportunities in the UK pension risk transfer (PRT) market, though competition here — like in its other product categories — is a major threat investors need to consider.

Security guard

Having robust online security systems isn’t a luxury but a downright necessity. Over the last month, attacks have halted carmaker Jaguar Land Rover’s production and shut down several European airports, underlining the growing danger of malicious actions.

Given this, it’s no surprise that analysts are tipping rapid long-term growth for the cybersecurity sector. Grand View Research analysts predicted annualised market growth of 12.9% over the next five years, for instance.

UK share investors have a multitude of ETFs they can buy to seize this opportunity. I hold the L&G Cyber Security fund in my SIPP, and last week added the iShares Digital Security ETF (LSE:LOCK) alongside it.

The former gives me more focused exposure to market leaders Cloudflare and Palo Alto. In total, it holds 34 shares in its portfolio. By adding the iShares ETF beside it, I enjoy a more diversified approach that helps me to reduce risk. It carries most of the same big hitters but boasts a much larger pool of 111 companies.

One added sweetener is the fund’s lower total expense ratio of 0.4%. On Legal & General’s fund, this sits at 0.69%.

Like any tech-based ETF, both of these funds could underperform during economic downturns when consumers and businesses cut spending. These two are denominated in US dollars, too, which leaves my returns vulnerable to exchange rate changes.

But on balance, I’m extremely optimistic they will still deliver excellent long-term returns. iShares Digital Security’s produced an average annual return of 10.6% since its creation in 2018.

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Here are a trio of thematic ETFs that I reckon deserve closer attention from investors.

Robotics

The first big trend I want to highlight is robotics in the shape of the iShares Automation & Robotics ETF (LSE: RBTX). This one is pretty self-explanatory, as it focuses on companies associated with the development of automatic and robotic technology.

However, there are many different directions to go with this, including industrial automation, software, and even robot-assisted surgery. The ETF’s holdings reflect this diversity, with the likes of Nvidia (AI semiconductors), Rockwell Automation (factory automation), and Dassault Systemes (virtual twin software). 

The ETF’s share price has jumped 63% over the past five years.

One risk here is tariffs (yes, those still). Fact is, the market appears to think they’re in the rear-view mirror, but their impact probably hasn’t even started yet. A global economic downturn would likely reduce capital expenditure, including investments in automation.

The longer term looks brighter, though. Morgan Stanley Research estimates the humanoid robot market is likely to reach $5trn by 2050. “Adoption should be relatively slow until the mid-2030s, accelerating in the late 2030s and 2040s”, says analyst Adam Jonas.

Cybersecurity

Next, we have the iShares Digital Security ETF (LSE: LOCK). This one holds 111 firms that provide services designed to secure digital infrastructure. In simple terms, companies defending data, networks, and systems from cyber threats in our increasingly online world.

Top cybersecurity and security stocks here include Fortinet, Datadog, Palo Alto Networks, Cloudflare, and Okta. The share price is up 68% in the past five years.

Now, one thing to note here is that the fund is denominated in dollars (each share is currently just under $10). So one risk would be the pound strengthening significantly against the dollar, which would impact returns. 

Thematically though, it seems inevitable that cybersecurity spending will keep on rising. According to the Royal Institution of Chartered Surveyors, 73% of 8,000 UK business leaders expected their company to be hit with a cyber-attack in the next 12 to 24 months.

Nowadays, cybersecurity has become an absolute necessity rather than a luxury. And this bodes well for this ETF.

Defence

The final big trend is rising military spending by NATO members. Recently, they committed to spending 5% of GDP annually on defence over the next 10 years.

This brings me onto the HANetf Future of Defence ETF (LSE: NATP). It provides exposure to firms generating revenue from NATO defence and cyber defence spending.

Top holdings include AI software giant Palantir, Germany’s Rheinmetall, cybersecurity innovator CrowdStrike, and the UK’s BAE Systems.

Since launch in 2023, the ETF’s share price has rocketed 126%. This reflects the bullish sentiment around defence stocks.

That said, sentiment could quickly change if geopolitical tensions ease. Sadly though, we’re seeing more confrontation and less cooperation.

Meanwhile, there’s an unprecedented surge in cyberattacks, which will likely grow in sophistication and intensity in the age of AI.

Given this volatile backdrop, I think the Future of Defence ETF is set for further gains in the years ahead.

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