As 2026 gets underway, many investors are wondering how to position their portfolios for growth while managing volatility in an increasingly complex environment. From geopolitical unrest to a frothy tech sector and shifting interest-rate expectations, there are many trends to consider.
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The best ETFs for this environment are tactical funds that offer a bit of diversification without diluting the growth potential of a specific strategy. Exchange-traded funds are fundamentally vehicles to capitalize on big-picture trends without relying on individual stock picks, but they also can be focused on a specific sector or innovation to avoid a boring approach that simply takes what the market gives you.
The following ETFs stand out as some of the best opportunities to consider now, with targeted exposure to innovation, income and other big-picture trends that could deliver in in the new year:
| ETF | Expense ratio | Assets |
| Global X Artificial Intelligence & Technology ETF (ticker: AIQ) | 0.68% | $7.8 billion |
| ARK Space & Defense Innovation ETF (ARKX) | 0.75% | $714 million |
| Invesco QQQ Trust (QQQ) | 0.18% | $411 billion |
| Invesco S&P 500 High Beta ETF (SPHB) | 0.25% | $678 million |
| VanEck Junior Gold Miners ETF (GDXJ) | 0.51% | $10.5 billion |
| Vanguard Real Estate ETF (VNQ) | 0.13% | $34.4 billion |
| Vanguard Intermediate-Term Corporate Bond ETF (VCIT) | 0.03% | $59.6 billion |
Global X Artificial Intelligence & Technology ETF (AIQ)
Assets: $7.8 billion Expense ratio: 0.68%
An obvious place to start 2026, AIQ is built squarely around the artificial intelligence revolution. The fund holds global leaders across the AI ecosystem, from Silicon Valley mega-caps like Alphabet Inc. (GOOG, GOOGL) to Asia-based semiconductor giant Taiwan Semiconductor Manufacturing Co. Ltd. (TSM). Its mandate spans hardware, software and enabling technologies, offering broad exposure to transformative innovation. While the ETF is “only” up about 35% over the past 12 months — trailing some standout AI stocks — its nearly 90 holdings provide diversification that can help temper the volatility of single-name bets.
ARK Space & Defense Innovation ETF (ARKX)
Assets: $714 million Expense ratio: 0.75%
With geopolitical risks elevated in 2026, ARKX offers both a hedge against global instability and a way to capitalize on next-generation defense and aerospace innovation. The fund holds just over 30 companies, including emerging leaders such as Rocket Lab Corp. (RKLB) and Palantir Technologies Inc. (PLTR). By sidestepping legacy defense contractors like Lockheed Martin Corp. (LMT), which have lagged recently, ARKX focuses on future-facing technologies rather than yesterday’s winners.
Invesco QQQ Trust (QQQ)
Assets: $411 billion Expense ratio: 0.18%
Innovation extends far beyond AI and defense, and QQQ remains one of the simplest ways to capture high-growth technology at scale. The ETF tracks the Nasdaq-100 index, which includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange. Top holdings include Apple Inc. (AAPL), Microsoft Corp. (MSFT), Nvidia Corp. (NVDA), Alphabet and Meta Platforms Inc. (META). While hardly under-the-radar, the long-term dominance of Big Tech makes QQQ a core holding for investors seeking growth exposure in 2026.
[READ: 7 Best Long-Term ETFs to Buy and Hold]
Invesco S&P 500 High Beta ETF (SPHB)
Assets: $678 million Expense ratio: 0.25%
SPHB targets “high beta” stocks — companies that tend to move more aggressively than the broader market. Volatility often carries a negative connotation, but it can be a powerful driver of outperformance in strong markets. With holdings such as Micron Technology Inc. (MU) and Robinhood Markets Inc. (HOOD), both of which have delivered triple-digit gains over the past year, the fund aims to harness this momentum. Risks are undeniably higher, but SPHB is well-suited for aggressive investors who believe the rally still has room to run.
VanEck Junior Gold Miners ETF (GDXJ)
Assets: $10.5 billion Expense ratio: 0.51%
Gold enjoyed a historic 2025, with prices surging 65% to top $4,000 per ounce, and mining stocks followed suit. GDXJ focuses on “junior” miners — smaller companies that often deliver amplified gains thanks to operational leverage. With relatively modest increases in production, these firms can see outsized profit growth when gold prices rise. Many holdings are also reinvesting recent windfalls into expansion and acquisitions, positioning the fund for continued strength even if gold’s pace moderates in 2026.
Vanguard Real Estate ETF (VNQ)
Assets: $34.4 billion Expense ratio: 0.13%
VNQ stands out as a tactical play for early 2026. After three quarter-point rate cuts late last year, the federal funds rate now sits at a target range of 3.5% to 3.75%, with expectations for further easing toward 3%. Lower borrowing costs should benefit real estate companies reliant on commercial financing. After a prolonged period of underperformance, valuations across VNQ’s holdings look attractive, and the ETF currently offers a 3.9% dividend yield — roughly three times that of the S&P 500. For investors wary of overheated tech, VNQ provides income and diversification.
Vanguard Intermediate-Term Corporate Bond ETF (VCIT)
Assets: $59.6 billion Expense ratio: 0.03%
Rounding out the list is a steady, income-focused option. VCIT invests in roughly 2,200 investment-grade corporate bonds while avoiding high-yield “junk” debt. With an average duration of six years, the fund strikes a balance between yield and interest-rate sensitivity. Its current yield of about 4.8% may decline if rates fall, but easing rates typically support bond prices, helping offset lower income. For investors seeking stability, diversification and reliable income, VCIT is a compelling complement to equity-heavy portfolios.
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7 Best ETFs to Buy Now originally appeared on usnews.com
Update 01/15/26: This story was published at an earlier date and has been updated with new information.
