3 Unique ETFs With Strong Momentum for the End of the Year

Key Points

• Three niche ETFs, FTHF, HECO, and GTEK, have each returned 40% or more year to date by using unconventional investment strategies.
• FTHF targets emerging-market companies with high Freedom House Human Dignity scores, while HECO blends crypto exposure with equities and options-based hedging.
• GTEK actively manages a portfolio of smaller, disruptive tech companies under $100 billion in market cap, though all three funds carry notable fees and risks.

Though investors are increasingly turning to exchange-traded funds (ETFs) as evidenced by massive inflows in recent quarters, the fund landscape is so broad that many worthwhile strategies get overlooked. Looking beyond broad-based sector funds is one way investors can expand their horizons—indeed, some of the best performers in the ETF space take unusual approaches.

The funds below all offer investors a combination of innovative strategies—including unique assets, exposure to niche industries, or similar—and strong momentum heading into the final months of 2026. Each of these funds has far outperformed the market, returning 40% or more year to date (YTD). This momentum may be enough to carry them higher before the end of the year.

FTHF: An Emerging Markets Play With a Unique Twist

Climbing at a rate more than triple that of the S&P 500 so far this year, the First Trust Emerging Markets Human Flourishing ETF NYSEARCA: FTHF takes a fairly straightforward theme—developing economies—and puts a unique spin on it. FTHF follows an index of companies in emerging markets that have a high "Human Dignity" score according to a Washington, D.C.-based political non-profit called Freedom House.

The result is a portfolio consisting of everything from large-cap Asian semiconductor firms to energy and industrial companies and much more.

The largest positions out of more than 100 holdings include South Korean chip makers like SK hynix NASDAQ: SKHY, Brazilian state-owned energy firm Petrobras NYSE: PBR, and Taiwanese semiconductor maker MediaTek, among others.

Despite its high annual fee of 0.75%, FTHF may nonetheless appeal to investors seeking international diversification along with a tilt toward economic development and technology stocks. S

till, the firm's broad geographic reach does not eliminate its risks, which include significant exposure to the AI infrastructure buildout, geopolitical turmoil, and emerging market currencies.

HECO: Multiple Crypto-Related Strategies Overlap to Outperform

Cryptocurrency-focused ETFs have recently drawn renewed attention from institutional investors, but retail investors looking for exposure with a hedge against volatility might look specifically at the State Street Galaxy Hedged Digital Asset Ecosystem ETF NASDAQ: HECO.

The fund overlays multiple strategies: for one, it provides indirect crypto exposure via investments in other ETFs and futures. It combines this with investments in traditional stocks of companies that could benefit from blockchain and crypto adoption. Crucially, it also adds some protection via an options-based hedging strategy to minimize total portfolio volatility.

Investors should not expect HECO to track the price of Bitcoin or any other cryptocurrency. This has been a good thing in 2026, with BTC trading down close to 6% year to date (YTD).

On the other hand, HECO's more complex approach has yielded excellent results: the fund has surged by almost 50% over the same period.

Of course, the recent rally does not guarantee that momentum will continue, and the crypto space remains highly speculative and risky even with the protection that comes with a hedging layer. Investors need only look at the fund's net asset value, which has declined by several percentage points in the last three months despite positive returns for the fund overall, as a reminder of this.

GTEK: A Novel Approach to the Tech Space That Has Paid Off in 2026

In one sense, the Goldman Sachs Future Tech Leaders Equity ETF NYSEARCA: GTEK has the most traditional focus of the three ETFs on this list: this actively managed fund looks at 58 tech stocks from around the world to identify growth potential. What sets it apart, though, is the nature of those tech firms that it targets. The fund only invests in companies with market capitalizations under $100 billion and with the potential to disrupt the industry.

GTEK therefore bypasses the biggest names in tech in favor of smaller, niche companies that are still proven. Specialized semiconductor makers like Marvell Technology Inc. NASDAQ: MRVL figure prominently, but a wide variety of industries and geographies are represented.

This fund's strategy of identifying future leaders in the tech space that are already causing disruption has paid off, with GTEK rising by about 52% YTD. As a niche actively managed fund, the fees are higher than most in the ETF space at 0.75% per year.

Investors should also keep in mind that, while GTEK has about $256 million in managed assets, its trading volume tends to be quite low. This may cause liquidity issues for more active traders and may prompt more interest among those who are looking to buy and hold the fund. If the momentum continues as it has so far this year, that may be an increasingly attractive prospect.