Do the Hottest ETFs of 2025 Still Have Upside in 2026?

Key Points

• Many of the top-performing ETFs of 2025 more than doubled during the year.
• A number of these funds focused on metals—specifically, on companies mining or producing both precious and critical metals.
• Four funds with unique strategies surrounding critical, rare earth, or other related groups of metals may continue to stand out in 2026.

In 2025, top-performing exchange-traded funds (ETFs) often capitalized on an angle related to innovation or to metals. With demand for data centers to power AI applications surging, funds focused on the infrastructure and materials necessary to fuel this industry thrived. The massive rally in precious metals also led some ETFs targeting mining companies or related plays to do well.

Heading into 2026, investors may wonder if these funds remain a strong choice. Four standouts from 2025 may be worth a closer look for their role in the strategic and critical materials space—each of the funds below provides indirect exposure to some of the materials or metals that will continue to make many kinds of technological innovation possible. So long as this demand remains high, these funds could see continued success.

Focus on Metals Used to Power EV Batteries Yields Strong Returns

The ProShares S&P Global Core Battery Metals ETF NYSEARCA: ION is a play on battery technology, holding more than 50 stocks from around the world that play a role in supplying batteries for electric vehicles (EVs) and in related applications. Chinese companies are best represented in ION's basket at nearly 31% of invested assets, while Australian and Canadian firms are also prominent.

EV battery technology is reliant on metals like lithium and cobalt, and many of the companies ION targets mine for and produce these vital materials. Because lithium may also be used in a variety of other applications, including aerospace, consumer electronics, and more, some of the firms in ION's portfolio may benefit from favorable conditions for these other industries or sectors.

ION has surged by more than 130% in the last 12 months and is off to a strong start in 2026, climbing by about 9% in the first week of the year. This may make the fund's relatively high expense ratio of 0.58% more manageable.

A Broad View on Metals Needed for Disruptive Technology

Taking a broader view than ION, the Global X Disruptive Materials ETF NASDAQ: DMAT invests in companies producing metals and materials for use in disruptive technologies more generally.

These may include robotics, fuel cells, green energy, and more, all of which rely on a combination of rare earth metals, palladium, platinum, zinc, manganese, and similar critical materials.

DMAT's 50 holdings have a global reach, but the fund focuses nearly half of its assets on just 10 or so names. Like ION, Chinese companies make up the largest portion of this ETF's portfolio, but U.S., South African, and British firms are also common. DMAT's expense ratio of 0.59% is only marginally higher than ION's, which may be worthwhile for investors seeking a more expansive view. With a one-year return of more than 113%, the fund has also far outperformed the market.

Narrow Rare Earth Strategy Means Smaller Portfolio Size

The VanEck Rare Earth and Strategic Metals ETF NYSEARCA: REMX offers another variation on the themes suggested by the funds above—in this case, the focus is specifically on rare earth metals like cerium.

These metals have abundant applications in tech products including smartphones, electronic displays, and defense systems, making them highly valuable.

Due to the relative paucity of rare earth mining companies, REMX's portfolio is fairly narrow, with just over two dozen names and a handful of companies—like Albemarle Corp. NYSE: ALB—occupying outsized positions. While this may leave REMX somewhat more prone to volatility, it has recently been a good bet. Shares of the fund more than doubled in the last year amid steady demand.

Most Expensive and Diversified Fund Offers Varied Metals Exposure

The most diversified portfolio on our list belongs to the Sprott Critical Materials ETF NASDAQ: SETM, which holds nearly 130 positions in companies ranging from precious metals miners to specialized metals producers and more.

Lithium producers make up more than a quarter of the basket, with companies focused on uranium, copper, rare earths, and silver also figuring prominently.

The broad purview comes with a comparably high expense ratio of 0.65%, but SETM's range of holdings means it can benefit from sustained interest across a host of industries and sectors. In the last year, it has surged by about 105% and it is up an impressive 11% in just the first week of 2026 as well.