ETF ETF ideas for five key 2026 investment themes

brad-smith
• Head of ETF Strategy
February 9, 2026

As our global market strategists look ahead to 2026, they believe the conditions are in place for global stock markets to further advance. Here are their five key investment themes for 2026 and the ETFs that may align with them.

1. Improved growth, broader participation

This lays the case for greater market participation down the capitalization spectrum and for cyclically oriented sectors. RSP, the Invesco S&P 500 Equal Weight ETF, may benefit from the broadening of market performance. It maintains equal exposure across names in the S&P 500.

2. Reduce AI concentration risks

Segments of the artificial intelligence theme have become a little stretched, but a clear catalyst for consolidation remains unclear. We prefer rebalancing to manage concentration. One potential solution: Revenue weighting, which can be a simple, effective tool to get broad market exposure at lower valuations and with less concentration. Consider RWL, the Invesco S&P 500 Revenue ETF.

3. Lower policy rates

This would likely mean a steeper yield curve and a weaker dollar, so investors may want to step out of cash into ultrashort. GSY, Invesco Ultra Short Duration ETF, offers additional yield beyond cash, US Treasury bills, and money market funds without taking on significantly more interest rate risk.

4. Growth outside the US

Our strategists expect a weaker US dollar and growth outside of the US to support non-US assets. A high dispersion in the opportunities across international stocks may present a favorable backdrop for momentum investing. Consider IDMO, the Invesco S&P International Developed Momentum ETF, which tracks the S&P World Ex-U.S. Momentum Index.1

5. Private credit offers diversification

A more benign risk environment, better growth, and stable inflation, coupled with easier US monetary policy, are the typical conditions where private credit has performed well. BKLN, the Invesco Senior Loan ETF, provides exposure to senior loans, which have been highly correlated to private credit.2

Additional ETF resources

  • 1

    The S&P World Ex-U.S. Momentum Index is designed to measure the performance of securities in developed markets, excluding the US and South Korea, that exhibit persistence in their relative performance.
  • 2

    Source: Bloomberg L.P. and CDLI as of September 30, 2025, the latest data available. The correlation between the Cliffwater Direct Lending Index (CDLI) and the Morningstar LSTA US Leveraged Loan 100 Index is 0.84 since the CDLI inception on Sept. 30, 2015. The CDLI is an asset-weighted index of directly originated middle market loans that was created to help investors better understand direct lending characteristics and benchmark manager performance. The Morningstar LSTA US Leveraged Loan 100 Index is designed to measure the performance of the 100 largest facilities in the US leveraged loan market. Index constituents are market-value weighted, subject to a single loan facility weight cap of 2%.

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