The 5 best ETFs of 2026 so far

2026 has started strongly for the ETF market, increasingly establishing itself as a strategic choice for investors seeking diversification, tax efficiency, and competitive returns.

In this article, we look at the ETFs marketed in Europe that have performed best in 2026.

How did we select these ETFs?

We considered UCITS ETFs available to European investors with a track record of at least three years and assets of at least €100 million, ranked by year-to-date (YTD) total return in euros, according to Morningstar data. We excluded leveraged and short instruments, cryptocurrency funds due to their volatility, and ETCs. As a result, oil ETCs—which top the overall rankings this year—as well as gold and silver ETCs are not included (you can discover the best ETFs for investing in gold and silver in our dedicated articles).

Data updated as of October 27, 2026.

WisdomTree Cybersecurity UCITS ETF

Launched on January 25, 2021, the WisdomTree Cybersecurity UCITS ETF is a thematic strategy with approximately $439 million in assets under management, investing in global companies active in cybersecurity. Its portfolio primarily comprises software companies specializing in protecting networks, cloud environments, and digital identities, such as CrowdStrike, Palo Alto Networks, and Datadog.

The ETF tracks the WisdomTree Team8 Cybersecurity UCITS index, developed in collaboration with Team8, a company specializing in cybersecurity. It uses full physical replication. The portfolio is concentrated: the top ten holdings account for around 58%. The TER is 0.45%.

Other ETFs investing in cybersecurity

Why is cybersecurity performing so well in 2026?

The year had started badly for software, which was hit by fears that artificial intelligence could replace some of it. Cybersecurity turned around on April 10, when Anthropic restricted the release of its Mythos model over concerns that it could be used in cyberattacks. Since that low, Goldman Sachs’ sector basket has more than doubled, while CrowdStrike, Palo Alto Networks, and Fortinet have gained over 130%, ranking among the S&P 500’s ten best-performing stocks over the period (Bloomberg, 25/09/2026).

The underlying reason is that AI multiplies the vulnerabilities that need to be protected against. According to VulnCheck, artificial intelligence has roughly doubled the number of vulnerabilities discovered compared with a year ago. The results bear this out: CrowdStrike increased its net new annual recurring revenue (ARR) by 51% in the latest quarter and is up 120% year to date (24/7 Wall St., 26/10/2026). Demand is also holding up: Evercore ISI’s latest survey of distributors points to rising security budgets, with spending focused on data and AI protection, digital identities, and cloud security (24/7 Wall St., 23/10/2026).

The risk lies in valuations. CrowdStrike trades at more than 170 times expected earnings, second only to Tesla in the S&P 500, and some analysts, including Bernstein, have already downgraded parts of the sector. Current prices assume near-perfect results: a slowdown in AI spending would be enough to trigger a correction.

iShares MSCI Global Semiconductors UCITS ETF USD Acc

Launched on August 5, 2021, the iShares MSCI Global Semiconductors UCITS ETF USD (Acc) has approximately €5.01 billion in assets under management and provides global exposure to the semiconductor sector. It invests in large-, mid- and small-cap companies in developed and emerging markets that are active in designing and manufacturing chips and the equipment needed to produce them.

The ETF tracks the MSCI ACWI IMI Semiconductors & Semiconductor Equipment ESG Screened Select Capped index, which applies ESG criteria and concentration limits: companies involved in weapons, tobacco, thermal coal, or violations of the United Nations Global Compact principles are excluded. The fund uses full physical replication. Its portfolio comprises approximately 258 holdings, with the top ten accounting for 60%, including AMD, TSMC, NVIDIA, Micron, and Broadcom. The fund is accumulating and has a TER of 0.35%.

Other ETFs investing in semiconductors

Why are semiconductors performing so well in 2026?

The driving force is spending on artificial intelligence, which reached unprecedented levels in 2026. Following first-quarter results, Moody’s raised its estimate of 2026 investments by Microsoft, Amazon, Meta, Alphabet, Oracle, and CoreWeave to $785 billion, with the figure expected to approach $1 trillion in 2027 (Data Center Dynamics). Much of this spending goes toward chips, memory, and data center equipment.

The producers’ results confirm it. In the third quarter, TSMC increased its net profit by 68.7%, and for the fourth quarter it expects revenue to grow 58% year over year (MF Milano Finanza, 16/10/2026). On the memory front, analysts expect the shortage to last until 2027, giving producers unusual pricing power: SK hynix, which controls 57% of the HBM memory market, has surpassed a market capitalization of $1 trillion (Websim, 27/05/2026).

The sector remains highly volatile, however. Over the past month, the iShares MSCI Global Semiconductors has lost 12.71% amid widespread chip sell-offs, showing how quickly the market reacts to any doubts about the sustainability of AI spending. Added to this is the geographic concentration of production in Taiwan, South Korea, Japan, and the United States, which exposes the sector to trade and geopolitical tensions.

Franklin FTSE Taiwan UCITS ETF

Launched on March 21, 2022, the Franklin FTSE Taiwan UCITS ETF has approximately €1.16 billion in assets under management and provides exposure to Taiwan’s leading mid- and large-cap companies. Its portfolio is closely tied to the global semiconductor supply chain, with TSMC as its largest holding.

The ETF tracks the FTSE Taiwan 30/18 Capped index, which applies concentration limits: the largest constituent cannot exceed 30% of the index weight, and the others cannot exceed 18%. The fund uses full physical replication. It is an accumulating fund, meaning it reinvests dividends, and with a TER of 0.19%, it is among the cheapest Taiwan ETFs available in Europe.

Other ETFs investing in Taiwan

Why is Taiwan performing so well in 2026?

Taiwan is the production hub of artificial intelligence, and the 2026 figures reflect this. In September, exports hit a record $87.22 billion, up 60.9% year over year, driven by information and communications technology products, which nearly doubled (+103%) (Trading Economics, 08/10/2026). In August, overseas orders exceeded $100 billion for the first time (+71.4%), driven by demand for AI servers and semiconductors, with the United States as the largest market (+88.9%) (Taiwan Ministry of Economic Affairs, via Focus Taiwan).

The stock market’s driving force is TSMC, the world’s leading contract chipmaker. In the third quarter, it reported a 68.7% increase in net profit and expects fourth-quarter revenue to rise 58% year over year. The stock rose nearly 60% from the start of the year before slowing in October (MF Milano Finanza, 16/10/2026).

This is precisely the point to bear in mind: investing in Taiwan means investing primarily in TSMC and the semiconductor supply chain.

Franklin FTSE Korea UCITS ETF

Launched on June 4, 2019, the Franklin FTSE Korea UCITS ETF has approximately €3.96 billion in assets under management and provides exposure to South Korea’s leading mid- and large-cap companies. The portfolio is dominated by the country’s major technology groups, with Samsung Electronics and SK hynix as its two largest holdings.

The ETF tracks the FTSE Korea 30/18 Capped index, which applies concentration limits: the top holding cannot exceed 30% of the index weight, while the others cannot exceed 18%. This limit is significant in such a concentrated market, where the top ten holdings account for 60.90%. The ETF uses full physical replication. The fund is accumulating and, with a TER of 0.09%, is among the cheapest ETFs on South Korea available in Europe.

Other ETFs investing in South Korea

Why is South Korea performing so well in 2026?

The Korean stock market delivered an exceptional performance in 2025 and maintained solid momentum at the start of 2026, with international investor demand remaining robust thanks to three key drivers: Korea’s central role in the AI memory supply chain, an export cycle in the defense sector that has become economically significant, and a corporate governance narrative that has finally moved from discussion to the first concrete steps.

In terms of figures, the KOSPI hit a record 8,457 points on May 27, up around 93% year to date (Websim, 27/05/2026). The market has since corrected: over the past month, the Franklin FTSE Korea has lost 18.74%, although it remains up 68.17% in 2026. Samsung Electronics and SK hynix were the main drivers of the rally, highlighting the Korean stock market’s concentration in semiconductors and memory.

On the governance front, the Korean government has promoted the “Corporate Value-up Program,” a plan aimed at improving the valuation of domestic stocks by encouraging companies to improve governance and increase shareholder returns, making the market more attractive to international investors.

One point to keep in mind: anyone who combines an MSCI World ETF with a FTSE Emerging Markets ETF completely excludes South Korea, despite believing they have truly global exposure. For investors who focus on these standard indices, South Korea ETFs therefore also offer a way to achieve genuine geographic diversification, rather than simply making a tactical bet.

SPDR S&P U.S. Energy Select Sector UCITS ETF

Launched on July 7, 2015, the SPDR S&P U.S. Energy Select Sector UCITS ETF has approximately €858 million in assets under management and provides exposure to energy companies included in the S&P 500. Its portfolio includes companies involved in the exploration, production, refining, and distribution of oil and gas, as well as suppliers of equipment and services to the energy industry.

The ETF tracks the S&P Energy Select Sector Daily Capped 35/20 index, the version of the sector index adapted to UCITS rules: a single security can account for up to 35%, while the others are capped at 20%. It uses physical replication. It is one of the most concentrated portfolios in the ranking, with 25 holdings in total and the top ten accounting for 81.71%. The fund is accumulating and has a TER of 0.15%.

Other ETFs investing in energy

Why is energy performing so well in 2026?

The sector had already got off to a strong start before the Hormuz crisis. Before the conflict with Iran, the S&P 500 energy sector was already up nearly 25% year to date, supported by developments in Venezuela and investors’ rotation out of technology and into less expensive sectors (J.P. Morgan Asset Management, 13/03/2026).

Then came the Strait of Hormuz crisis. In April, Brent reached $110 a barrel (We Wealth, 28/04/2026). In September, around 7 million barrels a day passed through the strait, compared with about 20 million before the war (Macquarie, via Websim, 08/09/2026), and in October crude oil remains around $110 (Trading Economics).

Compared with the past, companies are entering this phase with less debt on their balance sheets than in 2022: higher profits can fund share buybacks, debt reduction or acquisitions rather than new investments (J.P. Morgan AM). This is one reason the market is rewarding the sector. The closest precedent is 2022, when, during the war in Ukraine, the S&P 500 energy sector ended the year up 59%.

There is still a clear gap, however: energy equity ETFs are up around 60–66%, compared with 155.54% for the Brent ETC. The stock market is not pricing in oil staying at these levels, and a reopening of Hormuz could quickly reverse the trend: at the end of June, during a period of easing tensions, Brent had returned to around $2 above its pre-conflict level (Websim, 25/06/2026).

^{The content of this article is for informational purposes only and should not be construed as financial advice.}