Seasoned investors often approach markets with a long-term view, using short- and medium-term volatility to buy into the themes they believe will profit over many years. While identifying these trends is difficult, tuning out the noise can help you focus your portfolio on the winners, possibly resulting in significant gains.

Here are five of the most popular trends right now -- including several themes showing significant growth potential in 2025.

1. Cryptocurrency

After smashing records with the successful launch of the first spot Bitcoin ETFs in 2024, the crypto market has entered a new era. Many institutional investors, hedge funds and investment advisors have dived into crypto ETFs, and this growing adoption is poised to create steady, long-term demand for digital assets.

Looking ahead, the spotlight is shifting to the potential approval of spot ETFs for tokens like XRP, Solana, Litecoin, and Hedera in the U.S. However, cryptocurrency exchange Coinbase predicts that institutional demand will likely remain concentrated on a few ETFs, such as Bitcoin and Ethereum, in the near term.

This year could bring even more changes to the crypto ETF landscape. With a new appointee selected to run the Securities and Exchange Commission (SEC), there have been rumblings of introducing staking, which could boost rewards for ETF holders, making these products even more appealing to investors.

Meanwhile, after years of regulatory uncertainty, the U.S. is welcoming its most crypto-friendly Congress ever. With bipartisan, pro-crypto majorities in both the House and Senate, Coinbase anticipates that favorable regulations could fuel crypto's momentum in 2025.

Despite these tailwinds, cryptocurrency remains a risky asset class, and experts recommend allocating no more than 5 to 10 percent of your portfolio to it.

2. Energy stocks and ETFs

Artificial intelligence has been the stock market's darling for over two years, with companies like Nvidia ( NVDA ) and Broadcom ( AVGO ) delivering explosive growth and massive returns for investors. But while AI grabs the headlines, powering this technological revolution is an equally compelling investment story.

JPMorgan ( JPM ) predicts that companies in the industrial and utilities sectors -- those supplying the physical infrastructure and energy needed for AI -- are poised for significant growth. As AI's demand for power continues into 2025, these sectors may offer long-term opportunities for investors seeking exposure to the AI-driven economy.

For investors eager to tap into this growth, broad infrastructure funds and power generation companies -- along with the best-performing energy stocks and energy ETFs -- may be strategic plays to consider as the energy sector powers up for the next phase of AI expansion.

3. Small-cap stocks

High-profile large-cap tech stocks such as Nvidia ( NVDA ) and Microsoft ( MSFT ) got all the attention in 2023 and 2024, helping to drive the Nasdaq and S&P 500 indexes to new all-time highs. While investors scrambled to own these momentum stocks, they mostly shunned small-cap stocks, leading to lackluster performance from these smaller companies.

Now with more attractive relative valuations, small-cap stocks have caught investors' interest again. Some of the best small-cap stocks offer high growth and attractive markets, even if they don't have the deep pockets and established markets of the large caps. So investors are again looking into these lesser-known names for opportunity.

Investing in individual small caps requires a long-term perspective and a lot of research to understand the industry and the opportunity. Plus, small caps tend to be riskier than larger companies because they just don't have the same level of resources. So investors looking to ride the small-cap wave may be well served by buying some of the best small-cap ETFs instead.

4. REITs

While interest rates remain elevated for now, investors are anticipating them to decline in the year ahead. And this means that sectors that have been hurt by higher rates, such as real estate investment trusts (REITs), may be poised for a rebound in the year ahead as rates fall.

REITs offer the ability to own real estate without all the headaches of actually managing it yourself. REITs enjoy significant tax advantages, most notably the ability to avoid tax at the corporate level in exchange for paying out most of their income as dividends. So REITs often offer among the highest dividends of any industry.

Publicly traded REITs are among the best types of REITs to invest in, because they offer high yields, low overall management costs and the scrutiny of public investors. As mentioned, with interest rates likely to fall in 2025, a key cost for REITs is poised to fall, too.

Those looking to own a fund instead of digging into the details of individual REITs should check out the best REIT ETFs and be sure to avoid some of the worst REIT investing mistakes.

5. Dividend stocks

Heading into 2024, many experts expected interest rates to drop -- and they did. The federal funds rate now sits at 4.25 percent, down from its high of 5.25 percent during the first half of 2024. In 2025, more rate cuts are likely on the horizon.

While cash can be a safe haven and even a solid income source in a high-interest-rate environment, its appeal dims as rates fall.

As cash and Treasury bill yields decline, many investors will seek new income streams. One opportunity in 2025 that can still provide income is dividend-paying stocks.

These equities, often trading at a discount to the broader market, also tend to be less volatile -- exhibiting about 80 percent of the market's overall volatility, according to JPMorgan ( JPM ). That makes dividend stocks and dividend ETFs a compelling option for investors aiming to balance risk and reward.

Cash remains essential for daily needs, but it's not built to outpace inflation or generate long-term growth. For that, stocks shine. Low-cost index funds are an easy way for investors to gain exposure to stocks of the country's largest companies.

Bottom line

While these five investing trends offer the promise of outsize returns in the years to come, nothing is guaranteed in investing. You may want to consult with a financial advisor before making any investment decisions.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.