Which ETFs could boost your portfolio in 2026? Analysis of the most profitable funds from last year

Why ETFs Remain Key to Diversify Investments

As you prepare to invest in 2026, exchange-traded funds (ETFs) deserve a prominent place in your strategy. Although they don’t promise the spectacular gains of stocks like Alphabet or Nvidia, ETFs offer a practical and efficient alternative to build a balanced portfolio without complications. With over 14,000 options available in the market, you have the freedom to choose between funds that replicate broad indices or specialized ones focusing on sectors, emerging trends, or specific market niches. For any investment goal, there is an ETF that fits your profile; you just need to know how to identify it correctly.

Three ETFs That Dominated 2025: The Current Landscape

According to Barchart’s analysis, three funds stood out with returns exceeding 50% over the past year: SPDR Gold Shares ETF (GLD), Abrdn Physical Platinum Shares ETF (PPLT), and VanEck Semiconductor ETF (SMH). Interestingly, two of these funds don’t even invest in traditional stocks but focus on metals and technology. All of them represent valuable opportunities to expand coverage and reduce risks in your portfolio.

GLD: The Largest Gold ETF Backed by Physical Metal

State Street Global Advisors manages the SPDR Gold Shares ETF, which has become one of the largest gold funds in the world with $148.2 billion under management. The fund’s structure is transparent: it holds physical gold in vaults and aims to faithfully replicate fluctuations in the international gold price.

With an annual management fee of 0.4% (meaning, $40 per every $10,000 invested), GLD offers a direct and secure way to gain exposure to gold without the storage or insurance issues of physical metals. Shareholders benefit from the fact that the fund is backed by real bars, not futures contracts, eliminating counterparty risks. Simply put, when the international gold price rises, the value of the fund also increases.

Over the past 12 months, GLD shares appreciated by 67%, reflecting the strength of the precious metals market. As the leading gold ETF in size and liquidity, GLD is ideal for investors seeking a reliable entry point into the sector.

PPLT: Exposure to Platinum Without Physical Ownership Risks

The Abrdn Physical Platinum Shares ETF replicates GLD’s successful model but focuses on platinum. Managed by the British firm Aberdeen (which recovered its full name in March 2025), this fund allows investors to benefit from platinum price movements while delegating custody and management of the metal to specialized professionals.

PPLT controls $3.1 billion in total assets and invests directly in high-purity platinum bars. Its expense ratio is slightly higher than GLD’s, at 0.6% annually, but its performance compensated for this difference: shares appreciated 138% over 12 months. This exceptional performance positions PPLT as an attractive option for portfolios seeking diversification beyond conventional stocks.

Precious metals like platinum have historically served as defensive assets during periods of volatility or economic uncertainty, making them valuable tools for risk management.

SMH: Concentrated Exposure to the Semiconductor Sector

The VanEck Semiconductor ETF takes a different approach, investing in the 25 largest publicly traded semiconductor companies in the United States. Managed by Van Eck Associates and tracking the MVIS US Listed Semiconductor 25 Index, this fund has $40.2 billion in assets and charges a 0.35% fee.

Its portfolio includes sector giants: Nvidia (which accounts for 20% of the fund), Taiwan Semiconductor, Broadcom, Micron Technology, and ASML Holdings. These five companies make up about half of the total portfolio, reflecting concentration in market leaders.

Semiconductors have been a crucial driver of stock market gains over the past two years, a trend analysts expect to continue into 2026. SMH provides an efficient way for investors to participate in Nvidia and other chipmakers without selecting individual stocks. In the last 12 months, SMH gained 52%, establishing itself as a profitable option for sector exposure.

What to Expect in 2026?

The natural question is whether these funds will maintain their momentum. Although past returns do not guarantee future results, the factors driving these ETFs—gold demand as a safe haven, growth of artificial intelligence, and semiconductor demand—remain solid. By 2026, diversification through ETFs will continue to be a smart strategy, allowing you to capture trends without overly concentrating on individual positions.