About a month into the new year, exchange-traded funds (ETFs) are beginning to build up enough of a performance record for 2026 to potentially differentiate themselves from the broader market. The funds with the best track record in 2026 may surprise some investors.
In addition to leveraged funds that are not intended for long-term buy-and-hold strategies in the first place, and ETFs that benefit from the massive rallies in gold and silver, some of the top ETFs focus on drone technology, nickel mining, and covered calls, respectively.
1. Pure-Play Drone Exposure at a Pivotal Time for the Industry
Combining technologies like AI and unmanned aerial vehicle (UAV) systems, drone companies have massive potential to transform defense, infrastructure, agriculture, and other industries. Increasingly, ETFs are available to capitalize on the rapid growth of drone stocks, and the REX Drone ETF is one of the latest additions to the list, having launched in October 2025.
DRNZ stands out for being the only pure-play drone ETF with global exposure. This allows the company to capture a shift from UAV technology from original applications in military and defense settings and into a host of other industries. It has a fairly narrow portfolio of 43 holdings, with major players like Ondas Inc. and DroneShield Ltd. dominating. The top three holdings collectively represent about a third of the portfolio, so investors should be mindful of any individual drone stock holdings they have in addition to DRNZ to prevent over-exposure.
DRNZ has an expense ratio of 0.65%, which may be a reasonable fee given that it has returned nearly 30% so far in 2026. Still, as a very new fund, the ETF has a relatively low managed asset level and trading volume, which could pose a liquidity concern.
2. Off-the-Beaten-Path Metals Fund With International Focus and Excellent Returns
Investors may be so tempted by the recent and much-hyped gold and silver rallies that they neglect to look outside of these to find opportunities in other precious metals ETFs. The Sprott Nickel Miners ETF could be one of these, as it stands to benefit from companies mining one of the most vital metals used in electric vehicles (EVs) and nickel-zinc (NiZn) batteries. The addition of nickel to EV batteries can help to increase drivable range, a discovery that could fuel surging demand for nickel in the years to come.
In a crowded field of metals ETFs, NIKL is the only pure-play nickel miner fund. It holds 27 global mining companies with a focus on nickel and market capitalizations in the small- and mid-cap range. Most firms are based or conduct operations in nickel mining hotspots, including Indonesia, Australia, and Canada. This means that NIKL gives U.S. investors access to often-overlooked companies outside of the domestic market.
Investors can expect to spend a bit more for this exposure, and NIKL has an expense ratio of 0.75%. In exchange, though, NIKL has provided exceptional returns of almost 31% year-to-date and 94% in the last 12 months, in addition to a dividend yield bonus of 1.80%.
3. Unique Covered Call Strategy on Moderna Has Paid Off
The YieldMax MRNA Option Income Strategy ETF may not be the first thing investors think of when they consider a new ETF target. MRNY uses a covered call option strategy in an attempt to generate weekly income based on shares of biotech giant Moderna Inc. With an annual dividend of $19.15, translating to a dividend yield of 92.16%, MRNY has been extraordinarily successful at achieving that goal in its more than two years of history.
MRNY also benefits from gains in MRNA shares, as the actively traded fund provides long exposure to the stock. As MRNA has surged by some 55% year-to-date (YTD), this has contributed to MRNY’s 47% returns since the start of 2026 as well. Still, MRNY caps its potential gains if MRNA shares increase in value, so investors should not expect capital appreciation to exactly match the stock.
MRNY is a niche, specialized fund that may appeal primarily to sophisticated investors, and its 1.27% expense ratio reflects that. Still, the fund has provided an exceptional combination of distributions and appreciation in recent history and may continue to do so if Moderna continues to excel as well.