Stock exchange-traded funds, or equity ETFs, are often low-cost, tax-efficient instruments for investors to track popular indexes or leverage experienced manager choices to beat the market. The best ones serve as low-cost building blocks in a portfolio, and unlike open-end mutual funds, all ETFs are traded throughout the day on an exchange.
In January 2026, the top-performing stock ETFs included mid-cap growth fund ARK Space & Defense Innovation ETF ARKX and mid-cap blend fund Tema American Reshoring ETF RSHO. Data in this article is sourced from Morningstar Direct.
Screening for the Best-Performing ETFs
When evaluating ETFs, investors should focus on long-term returns across multiple years and market cycles. However, short-term returns can provide valuable information about biases within strategies.
To find the month’s best-performing stock ETFs, we screened the Morningstar US equity category for those that trade within the United States. We excluded exchange-traded notes and ETFs with less than $100 million in total assets. Within our list, three funds fell into the small value category, where the average name rose 5.87% in January.
The 10 Best-Performing ETFs for January 2026
- ARK Space & Defense Innovation ETF ARKX
- Tema American Reshoring ETF RSHO
- ARS Focused Opportunities Strategy ETF AFOS
- Mango Growth ETF GARY
- Schwab US Dividend Equity ETF SCHD
- Invesco S&P SmallCap 600 Pure Value ETF RZV
- ARK Autonomous Technology & Robotics ETF ARKQ
- EA Bridgeway Omni Small-Cap Value ETF BSVO
- WisdomTree US SmallCap Quality Dividend Growth Fund DGRS
- Counterpoint Quantitative Equity ETF CPAI
Metrics for the Best-Performing Stock ETFs
ARK Space & Defense Innovation ETF
- : ★★★★★
- : 0.75%
- : Mid-Cap Growth
The best-performing ETF in January was the $812.5 million ARK Space & Defense Innovation ETF. The actively managed ARK ETF returned 10.59%, outperforming the average mid-cap growth fund, which gained 1.44%. Over the last year, the fund has climbed 53.54%, outperforming the 3.55% gain on funds in its category, placing it in the 1st percentile for the period.
The ARK Space & Defense Innovation ETF has a Negative Morningstar Medalist Rating, meaning our analysts expect it to be one of the worst performers within its category and think it is unlikely to deliver positive returns after fees.
Tema American Reshoring ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.75%
- Morningstar Category: Mid-Cap Blend
The $217 million Tema American Reshoring ETF was the second-best-performing ETF in January, with a 9.86% gain. The actively managed Tema Global ETF beat the 3.74% gain on the average fund in Morningstar’s mid-cap blend category for the month. Over the last year, the fund has gained 25.90%, outperforming the 8.82% gain on funds in its category, placing it in the 3rd percentile for the period.
The Neutral-rated Tema American Reshoring ETF launched in May 2023.
ARS Focused Opportunities Strategy ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.45%
- Morningstar Category: Large Blend
The $235.6 million ARS Focused Opportunities Strategy ETF ranked third for the month, returning 9.74%. The ARS Investment Partners ETF, which is actively managed, beat the 1.65% gain on the average large blend fund. The fund launched in June 2025 and does not have a one-year record.
The ARS Focused Opportunities Strategy ETF has not yet been awarded a Morningstar Medalist Rating.
Mango Growth ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.77%
- Morningstar Category: Large Growth
The $237.8 million Mango Growth ETF was the fourth-best-performing ETF in January, with a 8.66% gain. The actively managed None ETF beat the 0.62% loss on the average fund in Morningstar’s large growth category for the month. The fund launched in December 2025 and does not have a one-year record.
The Mango Growth ETF has not yet been awarded a Morningstar Medalist Rating.
Schwab US Dividend Equity ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.06%
- Morningstar Category: Large Value
The fifth best-performing ETF in January was the $79 billion Schwab US Dividend Equity ETF. The passively managed Charles Schwab ETF returned 8.64%, outperforming the average large value fund, which gained 3.74%. Over the last year, the fund has climbed 11.31%, underperforming the 14.63% gain on funds in its category, placing it in the 80th percentile for the period.
The Gold-rated Schwab US Dividend Equity ETF was launched in October 2011.
Invesco S&P SmallCap 600 Pure Value ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.35%
- Morningstar Category: Small Value
The $248.1 million Invesco S&P SmallCap 600 Pure Value ETF ranked sixth for the month, returning 8.15%. The Invesco ETF, which is passively managed, beat the 5.87% gain on the average small value fund. Over the past year, the fund has risen 16.13%, outperforming the 10.37% gain on funds in its category, placing it in the 16th percentile for the period.
The Neutral-rated Invesco S&P SmallCap 600 Pure Value ETF launched in March 2006.
ARK Autonomous Technology & Robotics ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.75%
- Morningstar Category: Mid-Cap Growth
The seventh best-performing ETF in January was the $2 billion ARK Autonomous Technology & Robotics ETF. The actively managed ARK ETF returned 8.08%, outperforming the average mid-cap growth fund, which gained 1.44%. Over the last year, the fund has climbed 51.47%, outperforming the 3.55% gain on funds in its category, placing it in the 1st percentile for the period.
The Neutral-rated ARK Autonomous Technology & Robotics ETF launched in September 2014.
EA Bridgeway Omni Small-Cap Value ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.45%
- Morningstar Category: Small Value
The $2 billion EA Bridgeway Omni Small-Cap Value ETF ranked eighth for the month, returning 8.02%. The Bridgeway ETF, which is actively managed, beat the 5.87% gain on the average small value fund. Over the past year, the fund has risen 16.42%, outperforming the 10.37% gain on funds in its category, placing it in the 15th percentile for the period.
The Silver-rated EA Bridgeway Omni Small-Cap Value ETF launched in December 2010.
WisdomTree US SmallCap Quality Dividend Growth Fund
- Morningstar Rating: ★★★
- Expense Ratio: 0.38%
- Morningstar Category: Small Value
The $365.7 million WisdomTree US SmallCap Quality Dividend Growth Fund was the ninth best-performing ETF in January, with a 7.77% gain. The passively managed WisdomTree ETF beat the 5.87% gain on the average fund in Morningstar’s small value category for the month. Over the last year, the fund has gained 6.59%, underperforming the 10.37% gain on funds in its category, placing it in the 73rd percentile for the period.
The Gold-rated WisdomTree US SmallCap Quality Dividend Growth Fund launched in July 2013.
Counterpoint Quantitative Equity ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.75%
- Morningstar Category: Mid-Cap Blend
The tenth-best-performing ETF in January was the $182.7 million Counterpoint Quantitative Equity ETF. The actively managed Counterpoint Funds ETF returned 7.60%, outperforming the average mid-cap blend fund, which gained 3.74%. Over the last year, the fund has climbed 17.80%, outperforming the 8.82% gain on funds in its category, placing it in the 9th percentile for the period.
The Bronze-rated Counterpoint Quantitative Equity ETF launched in November 2023.
What Are ETFs?
Exchange-traded funds are investments that trade throughout the day on stock exchanges, much like individual stocks. They differ from traditional mutual funds—known as open-end funds—which can only be bought or sold at a single price each day. Historically, ETFs have tracked indexes, but in recent years, more ETFs have been actively managed. ETFs cover a range of asset classes, including stocks, bonds, commodities, and most recently cryptocurrency.
ETFs offer investors an efficient way to gain exposure to the markets, often with low fees and an ease of buying and selling. They also generally offer higher tax efficiency than open-end funds.
How to Find Top ETFs for the Long Term
ETFs are often equated with low-cost indexing. However, the ETF marketplace has grown increasingly complicated. Some ETFs track a very narrow part of the market or pursue specific themes. Some ETFs invest based on a particular factor or a combination of them. And now there are actively managed ETFs.
Use these Morningstar resources to help find the best ETFs for the long term:
- Learn about the types of exchange-traded funds, their costs, and how to invest in them by reading Morningstar’s Guide to ETF Investing.
- Find the highest-rated ETFs across all investment categories in The Best ETFs and How They Fit in Your Portfolio.
- Review Morningstar director of personal finance Christine Benz’s suggested ETF portfolios for those saving for or already in retirement, including Tax-Efficient Retirement-Saver Portfolios for ETF Investors, Tax-Sheltered Retirement-Saver Portfolios for ETF Investors, ESG Tax-Sheltered Retirement-Saver Portfolios for ETF Investors, Tax-Sheltered Retirement-Bucket Portfolios for ETF Investors, and Tax-Sheltered ESG Retirement-Bucket Portfolios for ETF Investors.
- Research ETFs based on your personal selection criteria by using our Morningstar Investor Screener. The tool, which is available to Morningstar Investor members, allows investors to screen ETFs based on various criteria, including asset class, Morningstar Category, Medalist Rating, and fee level.
- Visit Morningstar’s ETF page for the latest articles and videos from our ETF specialists.
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