Top 5 ETFs to watch in 2026

What is an ETF?

An ETF, which stands for exchange-traded fund, is a type of investment vehicle that enables you to track the performance of an underlying set of assets or an index. ETFs are bought and sold on exchanges.

You get different types of ETFs; some cover stocks, whereas others track indices. In this article, we’ve listed a mixture of both.

ETFs can vary in a few ways. Typically, you’ll find:

• Physically replicated ETFs: Buy the underlying asset, such as stocks, which the benchmark tracks
• Synthetically replicated ETFs: Use derivatives to gain exposure to the benchmark and track performance
• Income distribution ETFs: Return dividends to investors
• Accumulated distribution ETFs: Reinvest dividends into the fund
• Smart beta ETFs: Use extra rules in an attempt to outperform their benchmark

Passive vs active ETFs

Passive ETFs are those that track an index, say the S&P 500, and aim to replicate its performance. They hold the same stock in the same proportions as the index.

Active ETFs are managed by professionals who proactively try to outpace the benchmark. They don’t necessarily track an index, and the fees on these are usually higher due to the active management. 

Advantages of ETFs

The pros of ETFs include:

• Diversification: ETFs can provide exposure to multiple industries in one financial vehicle. For example, you might trade an ETF that includes stocks from the automotive, telecommunications and health services industries. ETFs can also invest by country and index
• Accessibility: ETFs provide a relatively low-cost way to gain exposure to different asset classes, investment strategies and markets
• Similar to stock trading: Investing in and trading ETFs is very much like trading stocks in several ways. For example, you trade them at a market-based price that’s updated throughout the day
• Highly liquid: Popular ETFs are often more liquid than stocks, so you shouldn’t have a problem buying or selling them due to a lack of demand or supply

Disadvantages of ETFs

Let’s now look at some of the disadvantages of trading ETFs:

• Costs can be greater than stock trading: You’re looking at commissions and management fees when you invest in actively managed ETFs. Additionally, spreads can be wider on more niche ETFs than they are on stocks
• Lower dividend yields: While you do get dividend stocks in ETFs, they might not necessarily be the highest-yielding ones
• Volatility: ETFs are also vulnerable to volatility, and there’s no guarantee that your investment will grow. However, flip this around for CFD trading, where volatility presents opportunities to profit (or lose)

Top 5 ETFs to watch in 2026

We used several criteria in determining the top five ETFs to watch, including:

• Asset diversification: A balanced mix of exposure to US reshoring, Latin America, South Korea, Europe and Argentina
• Past six-month performance: Most of these ETFs have had substantial gains over the past six months (as of 1 April 2026) for those looking to stock trade. If you’re seeking volatility for CFD trading, you’ll still find it in some of these ETFs because they have seen substantial peaks and retracements
• Political and economic stability: Relatively stable markets

About the ETFs in this article

These ETFs can be traded via CFDs or stock traded with us, except for the Tema American Reshoring ETF.

All figures are accurate as of 1 April 2026.

1. iShares Latin America 40 ETF (NYSE American: ILF)

Exposure: S&P Latin America 40 Index

Six-month performance: 24.54%

Suitable for: Stock traders and CFD traders

iShares Latin America 40 ETF provides stock traders with direct exposure to 40 of the largest and most established blue-chip companies located in Latin America, including major players in Brazil, Mexico, Chile and Peru.

It’s heavily weighted towards the financial, materials and energy sectors, with top holdings typically including the Brazilian iron ore giant Vale and the regional banking leader Itaú Unibanco. The fund uses physical replication and follows an income distribution model.

This ETF is generally suitable for CFD traders due to its high liquidity and the clear trends it often follows in relation to global commodity prices. However, the inherent volatility of emerging markets can lead to sharp price gaps.

Risk context

The primary risk for this fund is its heavy concentration in just two countries, Brazil and Mexico, which together account for the vast majority of the portfolio. This makes the ETF highly sensitive to the political and economic stability of these specific nations.

2. Tema American Reshoring ETF (NYSE American: RSHO)

Exposure: Bespoke selection of companies involved in reshoring

Six-month performance: 14.75%

Suitable for: Stock traders

Tema American Reshoring ETF is an actively managed fund that targets the 'reshoring' phenomenon – the trend of moving manufacturing and industrial production back to the US.

It tracks a bespoke selection of companies involved in industrial automation, infrastructure and domestic supply chain logistics. Unlike a standard index fund, it uses expert research to select roughly 25 to 30 companies positioned to benefit from US government incentives like the CHIPS Act. It uses physical replication and follows an accumulated distribution model.

For CFD traders, this fund may be less suitable than a broad index like the S&P 500. Its specialised focus can lead to idiosyncratic price movements that don’t always align with the wider market.

Risk context

The risk context for this fund is centred on its 'thematic' nature and industrial concentration. Because it focuses so narrowly on US manufacturing and infrastructure, it is vulnerable to shifts in American trade policy or a slowdown in domestic construction.

If the anticipated 'manufacturing boom' fails to materialise or is delayed by high interest rates, this fund may underperform broader market indices.

Additionally, as a relatively new and smaller fund, it may have lower trading volume, which can lead to wider spreads.

3. iShares MSCI South Korea ETF (NYSE American: EWY)
 

Exposure: MSCI Korea 25/50 Index

Six-month performance: 21.79%

Suitable for: Stock traders and CFD traders

iShares MSCI South Korea ETF offers stock traders targeted access to large and mid-sized companies in the South Korean market.

The fund is dominated by the technology sector, with nearly half of its value tied to IT and electronics companies such as Samsung Electronics and SK Hynix. It also provides exposure to the industrial and financial sectors.

This fund uses physical replication and follows an income distribution model, with dividends typically paid annually.

This is a highly popular choice for CFD traders. Its high volatility and strong correlation with the global tech sector make it an excellent candidate for short-term speculative strategies and technical analysis.

Risk context

Investing in this fund carries a specific geopolitical risk due to the ongoing tensions on the Korean Peninsula. Any escalation in conflict or aggressive rhetoric from the North can cause immediate and severe volatility in South Korean equities.

Moreover, the heavy reliance on the global semiconductor cycle also means the fund is at risk if global demand for electronics weakens.

4. WisdomTree Europe Equity Income UCITS ETF (SIX Swiss Exchange: EEI)
 

Exposure: WisdomTree Europe Equity Income Index

Six-month performance: 12.80%

Suitable for: Stock traders

WisdomTree Europe Equity Income UCITS ETF’s exposure is specifically geared towards high-dividend-paying companies within the Eurozone that meet specific environmental, social and governance (ESG) criteria.

Unlike traditional funds, it uses a smart beta replication method, weighting its holdings based on the total cash dividends they pay rather than their market capitalisation. It’s an income distribution fund, making it a staple for those seeking regular payouts.

This fund is suitable for CFD traders who prefer a lower-volatility environment. Because it tracks stable, income-generating companies, it tends to have smoother price action than tech or emerging market funds.

Risk context

The risk for stock traders here is primarily linked to interest rate policy and sector concentration.

Because the fund prioritises yield, it’s often overweight in 'mature' sectors like utilities, financials and consumer staples, which may offer less capital growth during a rapid bull market led by high-growth technology firms.

5. Global X MSCI Argentina ETF (NYSE American: ARGT)
 

Exposure: MSCI Argentina ADR Index

Six-month performance: 37.17%

Suitable for: CFD traders

Global X MSCI Argentina ETF provides exposure to a concentrated group of Argentine companies, many of which are listed in the US as American Depositary Receipts (ADRs).

The fund is heavily focused on the energy, financial and ecommerce sectors, with the digital marketplace giant MercadoLibre often being its largest single holding.

It employs physical replication and follows an income distribution model.

This ETF is highly suitable for CFD traders with a high risk tolerance. It offers some of the most aggressive price movements in the global market, providing ample opportunity from both long and short positions.

Risk context

The country has a long history of extreme economic volatility, including hyperinflation, currency devaluations and sovereign debt defaults. While the current 2026 outlook is supported by market-friendly reforms, the success of these policies is not guaranteed.

Additionally, the fund is very concentrated, meaning poor performance from just one or two top holdings can significantly drag down the entire ETF.

How to trade ETFs with IG UAE

CFDs

1. Open a CFD trading account with IG UAE
2. Search for ETFs on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it 

Stock trading

1. Open a stock trading account with IG UAE
2. Search for ETFs
3. Choose the ETF you want to buy
4. Determine how many units you want to purchase
5. Place your order
6. Monitor your investment 

FAQs about ETFs

Footnotes
 

1. TradingView, April 2026
2. TradingView, April 2026
3. TradingView, April 2026
4. TradingView, April 2026
5. TradingView, April 2026