These 3 Underrated ETFs Could Boom in 2026

Key Points

• Exchange-traded funds had one of their biggest years ever in 2025, with about $1.5 trillion in total fund inflows.
• Under-the-radar funds to consider in 2026 include MOAT, which targets companies that have a significant competitive advantage over their rivals.
• GDE may appeal to investors seeking both the benefits of the gold rally and exposure to popular large-cap U.S. equities in the same play.

With net inflows of about $1.5 trillion for the year, 2025 was in some ways the biggest year ever for exchange-traded funds (ETFs). And with a massive and ever-growing field of funds available, the ETF space shows no signs of slowing or losing its appeal to investors in 2026.

While some investors consider whether some of the top-performing ETFs from 2025 will continue to shine this year, others might be looking for a fresh approach with the start of the new year. Here are three ETFs that could see a strong advantage in 2026.

A Focus on Companies Across Sectors With Key Competitive Advantages

The VanEck Morningstar Wide Moat ETF BATS: MOAT has a unique focus in that it targets an index of so-called "wide moat" firms—those with competitive advantages over their rivals that are sizable and should therefore give them a sustained leg up over those competitors going forward. A wide moat of this kind can take many forms, including overwhelming brand name recognition among customers, critical technological advantages, high costs of switching to a different provider, and so on.

Most wide moat firms have significant market values, and the large majority (more than 94%) of MOAT's portfolio is large-cap stocks (or bigger). Within the category of wide moat stocks, MOAT attempts to identify and focus on those with the most compelling valuations.

Of the 55 different positions in MOAT's basket, information technology and industrials sectors are best represented, with top names including Huntington Ingalls Industries Inc. NYSE: HII and United Parcel Service Inc. NYSE: UPS.

At an expense ratio of 0.47%, MOAT is not cheap. Its 1-year return of 15% has lagged the market slightly.

However, if economic conditions worsen in 2026, investors might look to companies with a bulwark relative to their peers to remain strong in the face of turbulence.

Double Play on Both Gold and Large-Cap Stocks

An actively managed fund, the WisdomTree Efficient Gold Plus Equity Strategy Fund BATS: GDE is a multi-asset ETF that holds both gold futures contracts and shares of large-cap U.S. equities.

This ETF may appeal to investors seeking the defensive qualities of gold (or just looking for a smart way to play the precious metals rally).

By also focusing on large-cap companies, which typically have a very low correlation with the performance of gold, GDE combines two approaches in a single trade, thereby avoiding a second outlay of capital.

For an actively managed ETF, GDE's expense ratio of 0.20% is low.

It also has more than half a billion dollars in managed assets, meaning it has a broad enough asset base to indicate healthy investor interest

Its roughly 500 holdings include many of the biggest names in U.S. stocks and lean somewhat toward tech firms. Over the last year, GDE has rallied dramatically alongside the price of gold, climbing by more than 70%.

Unique Combination of Metrics Pays Off For GRNJ In Its First Months of Trading

Another fund with active management, the Fundstrat Granny Shots U.S. Small- & Mid-Cap ETF NYSEARCA: GRNJ only launched in November 2025. Named after the unconventional basketball free-throw style, GRNJ utilizes tools to evaluate companies on metrics such as style tilt, seasonality, Purchasing Managers' Index (PMI) recovery, appeal to Millennial consumers, and more.

Investors can expect to spend a bit more for this hands-on approach from fund managers, and GRNJ is the most expensive fund on this list with an annual fee of 0.75%. It's also largely untested, with only minimal returns history—although with returns of more than 14% since launch, it is off to a promising start.

Additionally, with nearly $250 million in managed assets, it's clear that many investors have already been convinced of the potential of GRNJ's approach. Investors new to GRNJ might also balance this fund's focus on small- and mid-cap stocks with the ETF's partner fund, the Fundstrat Granny Shots US Large Cap ETF NYSEARCA: GRNY.