Back to top

Image: Bigstock

Positioning for 2026: Market Outlook and ETF Strategies

Read MoreHide Full Article

  • (1:10) - Will The Stock Market Continue To Rally In 2026?
  • (4:55) - What Risks Should Investors Be Aware of Going Forward?
  • (8:05) - Are We Currently In An AI Bubble?
  • (11:00) - Will The 2025 Top Market Performers Continue Through 2026?
  • (15:20) - What Themes And Investing Strategies Should Investors Be Watching?
  • (19:40) - Breaking Down Current ETF Flows
  • (22:30) - Episode Roundup: XLC, SPYG, XLU, UTES, SPEM, IEMG, GLDM, IAUM
  •                 Podcast@Zacks.com

 

In this episode of ETF Spotlight, I speak with Matthew Bartolini, Managing Director and Global Head of Research Strategists at State Street Investment Management. We discuss the market outlook and the best investing strategies for 2026.

With 2025 almost in the rearview mirror, the key question for investors is whether stocks will continue to move higher after three years of blockbuster gains. State Street expects the bull market to carry forward into 2026 due to several factors.

Trade tensions have eased, fiscal policy is supporting business investment and consumer spending, and the Federal Reserve is cutting interest rates. Corporate earnings remain strong and broad-based, with growth expected to continue next year.

Alongside deregulation, rising investment in AI, and confident consumers, these trends point to a stable economy and continued market momentum.

Investors still need to be aware of risks, with stretched valuations being the most obvious concern.

Matt does not believe the market is in an AI bubble, but the eventual winners and losers have not yet been fully defined. In this environment, maintaining broad exposure to AI beneficiaries and expanding growth opportunities may be beneficial.

The State Street SPDR Portfolio S&P 500 Growth ETF (SPYG - Free Report) is among the lowest-cost products in its category. NVIDIA (NVDA - Free Report) , Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , and Alphabet (GOOG - Free Report) are its top holdings.

Investors may also consider emerging markets through ETFs such as the SPDR Portfolio Emerging Markets ETF (SPEM - Free Report) , which could benefit from AI momentum, favorable macro conditions, and attractive valuations.

Given rising market complexity, strengthening portfolio resilience through multi-asset and alternative strategies is also recommended.

The SPDR Gold Trust (GLD - Free Report) remains the most popular gold ETF, but lower-cost options such as the SPDR Gold MiniShares Trust (GLDM - Free Report) and the iShares Gold Trust Micro (IAUM - Free Report) may be more suitable for long-term investors.

Tune in to the podcast to learn more.

Make sure to be on the lookout for the next edition of the ETF Spotlight and remember to subscribe! If you have any comments or questions, please email podcast@zacks.com.

Published in