These ETFs ranked as top performers in 2025. Should you consider buying them in 2026?

Top ETF Investment Strategies for 2026

As you plan your investment approach for 2026, don't forget to consider exchange-traded funds (ETFs). While ETFs may not deliver the headline-grabbing returns of individual stocks like Alphabet or Nvidia, they offer a straightforward and cost-effective way to diversify your portfolio quickly.

With over 14,000 ETFs available, investors can select broad market index funds or opt for specialized ETFs that target particular sectors, trends, or market segments. No matter your investment interests, there’s likely an ETF that fits your needs—you just have to know where to look.

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Among the best-performing ETFs over the past year are three standout funds: SPDR Gold Shares ETF (GLD), Physical Platinum ETF (PPLT), and Vaneck Semiconductor ETF (SMH). Each has gained more than 50% in the last 12 months, and notably, two of them don’t even invest in stocks. All three offer excellent ways to enhance your portfolio’s diversification.

Top ETF of 2025: SPDR Gold Shares ETF (GLD)

Managed by State Street Global Advisors, the SPDR Gold Shares ETF is one of the largest gold-backed funds, with $148.2 billion in assets. The fund charges a 0.4% annual expense ratio, which equates to $40 for every $10,000 invested.

This ETF is straightforward in its approach—it holds only physical gold and aims to mirror the price movements of gold bullion. As gold prices rise, so does the value of the fund.

Investors should note that GLD is backed by actual gold, not futures contracts. This makes it a convenient way to gain exposure to gold without the hassle or risk of storing physical coins or bars. Trading shares of GLD is also much simpler than buying or selling gold directly.

However, due to the fund’s management fee, its returns will always lag slightly behind the actual price of gold. This is the tradeoff for the convenience and security the ETF provides.

Over the past year, GLD shares have surged by 67%.

Top ETF of 2025: Abrdn Physical Platinum Shares ETF (PPLT)

The Abrdn Physical Platinum Shares ETF operates similarly to GLD. Managed by the UK-based firm Aberdeen (which reverted to its original name from Abrdn in March 2025), this fund provides investors with exposure to platinum without the need to physically store the metal.

PPLT manages $3.1 billion in assets and invests directly in platinum bullion. This allows investors to benefit from platinum price movements without the risks of holding the metal themselves.

The fund’s expense ratio is 0.6%, higher than GLD’s, but its performance has been impressive—shares have climbed 138% in the last year, more than compensating for the higher fee.

Both PPLT and GLD are solid options for those seeking to invest in precious metals, which often serve as safe havens during periods of market volatility.

Top ETF of 2025: VanEck Semiconductor ETF (SMH)

The VanEck Semiconductor ETF represents a more traditional equity-based ETF. Managed by Van Eck Associates, this fund tracks the MVIS US Listed Semiconductor 25 Index, which includes the 25 largest U.S.-listed semiconductor companies, each deriving at least half their revenue from the industry.

SMH holds $40.2 billion in assets and charges a 0.35% expense ratio. Its largest positions include Nvidia, Taiwan Semiconductor, Broadcom, Micron Technology, and ASML Holdings, which together account for nearly half of the fund’s portfolio. Nvidia alone makes up 20% of the ETF’s holdings.

Semiconductors have been a major force in the stock market over the past two years, a trend expected to continue into 2026. SMH is an excellent choice for investors who want exposure to Nvidia and other leading chipmakers, providing a way to diversify within the sector.

In the last 12 months, SMH shares have risen by 52%.