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Wall Street has been upbeat so far in 2026. The S&P 500 index has gained 1.4% so far this year (as of Jan. 19, 2026), while the Dow Jones has advanced 2.7% and the Nasdaq Composite has risen 1.2%. Events that drove market returns this year include the Japanese stock boom, the gold rally, upswings in defense stocks, and the Taiwan-U.S. chip deal.
Defense Stocks Boom
Rising geopolitical tensions are fueling strong gains in global defense stocks.Defense stocks started surging following the U.S. move to oust and capture Venezuelan leader Nicolas Maduro in early January. The sector had already performed strongly last year due to rising defense spending amid escalating geopolitical tensions. iShares US Aerospace & Defense ETF (ITA - Free Report) has surged 9.8% so far this year (read: Why Defense Stocks & ETFs Can Continue to Soar).
Japanese Stocks Are Hitting Highs; Bond Yields Rise
Japanese stocks have surged to record highs and bond yields rose lately on reports that Prime Minister Sanae Takaichi may call snap elections soon. Takaichi is hoping to convert her high approval ratings into a parliamentary majority for her party (read: Why Japanese Stocks Are Hitting Record Highs).
As of Jan. 20, 2026, Japan’s 40-year government bond yield hit a record high due to a broad selloff in government debt, as investors grew concerned about proposed cuts to the food sales tax, which could worsen the country’s fiscal position, as quoted on CNBC.
Meanwhile, Takaichi is expected to call a snap election on Feb. 8 and introduce aggressive fiscal spending, including increased defense outlays and tax cuts to support economic growth. Such hopes are fueling Japanese stocks. iShares MSCI Japan ETF (EWJ - Free Report) is up 5.1% so far this year.
As part of the agreement, Taiwanese semiconductor companies will invest at least $250 billion in U.S. chip production capacity, while the island’s government has committed $250 billion in credit guarantees to help smaller supply-chain partners relocate to the United States.
Against this backdrop, below we highlight a few winning exchange-traded funds (ETFs) so far this year.
Bitcoin prices have gained about 4% so far this year (at the time of writing).The Federal Reserve’s easy money policy and a mixed jobs report supported the rally by fueling expectations for the continuation of cheap money. This, in turn, has boosted liquidity for risk assets like Bitcoin. The Trump administration's pro-crypto stance, including potential U.S. Bitcoin reserves, has driven optimism and institutional demand.
The underlying VettaFi Drone Index tracks the performance of a portfolio of global equity securities of companies that are engaged in drone and unmanned aerial vehicles manufacturing and enabling technologies. The fund charges 65 bps in fees. The rally in defense stocks helped this fund rally in 2026.
The Roundhill Meme Stock ETF seeks to provide capital appreciation.Meme stocks represent a unique force in markets, where retail participation and swift sentiment shifts can cause extreme volatility, per Roundhill Investments. The fund charges 69 bps in fees.
YieldMax MRNA Option Income Strategy ETF (MRNY - Free Report) – Up 30.8% YTD
Moderna Inc.(MRNA) is up 35.6% so far this year. The company upped its 2025 revenue forecast in November.Moderna revised its total revenue guidance for the full year. It now expects total revenues in the range of $1.6-$2.0 billion, compared to the previously guided range of $1.5-$2.2 billion.
The YieldMax MRNA Option Income Strategy ETF is an actively managed fund that seeks to generate monthly income by writing call options on MRNA. MRNY ETF charges 99 bps in fees and it yields 99.78% annually.
Blockchain miners and infrastructure stocks rebounded sharply, thanks to institutional inflows, and expectations of Fed rate cuts boosting risk assets. The recovery in Bitcoin prices this year also led to the jump.
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Best-Performing ETFs to Start 2026
Wall Street has been upbeat so far in 2026. The S&P 500 index has gained 1.4% so far this year (as of Jan. 19, 2026), while the Dow Jones has advanced 2.7% and the Nasdaq Composite has risen 1.2%. Events that drove market returns this year include the Japanese stock boom, the gold rally, upswings in defense stocks, and the Taiwan-U.S. chip deal.
Defense Stocks Boom
Rising geopolitical tensions are fueling strong gains in global defense stocks.Defense stocks started surging following the U.S. move to oust and capture Venezuelan leader Nicolas Maduro in early January. The sector had already performed strongly last year due to rising defense spending amid escalating geopolitical tensions. iShares US Aerospace & Defense ETF (ITA - Free Report) has surged 9.8% so far this year (read: Why Defense Stocks & ETFs Can Continue to Soar).
Japanese Stocks Are Hitting Highs; Bond Yields Rise
Japanese stocks have surged to record highs and bond yields rose lately on reports that Prime Minister Sanae Takaichi may call snap elections soon. Takaichi is hoping to convert her high approval ratings into a parliamentary majority for her party (read: Why Japanese Stocks Are Hitting Record Highs).
As of Jan. 20, 2026, Japan’s 40-year government bond yield hit a record high due to a broad selloff in government debt, as investors grew concerned about proposed cuts to the food sales tax, which could worsen the country’s fiscal position, as quoted on CNBC.
Meanwhile, Takaichi is expected to call a snap election on Feb. 8 and introduce aggressive fiscal spending, including increased defense outlays and tax cuts to support economic growth. Such hopes are fueling Japanese stocks. iShares MSCI Japan ETF (EWJ - Free Report) is up 5.1% so far this year.
Gold Rally
Gold bullion-based exchange-traded fund SPDR Gold Trust (GLD - Free Report) has gained 5.8% so far this year. Gold hit a record high in January as escalating political tensions in the United States and worsening unrest in Iran led investors toward safe-haven assets, per Bloomberg, as quoted on Yahoo Finance. Rate-cut expectations and central bank buying keep bullion's long-term bull case strong (read: Gold Hits Record High on Political Uncertainty: Can the ETF Rally Last?).
Taiwan-U.S. Agree on $500B Chip Deal
On Jan. 15, 2026, the global technology landscape witnessed a strategic pivot, with the United States and Taiwan finalizing a historic trade agreement to jointly build chips and chip factories on American soil (read: Top-Ranked Semiconductor ETFs to Buy as Taiwan-US Agree on $500B Chip Deal).
As part of the agreement, Taiwanese semiconductor companies will invest at least $250 billion in U.S. chip production capacity, while the island’s government has committed $250 billion in credit guarantees to help smaller supply-chain partners relocate to the United States.
Against this backdrop, below we highlight a few winning exchange-traded funds (ETFs) so far this year.
ETF Winners
CoinShares Bitcoin Mining ETF (WGMI - Free Report) – Up 33.4% YTD
Bitcoin prices have gained about 4% so far this year (at the time of writing).The Federal Reserve’s easy money policy and a mixed jobs report supported the rally by fueling expectations for the continuation of cheap money. This, in turn, has boosted liquidity for risk assets like Bitcoin. The Trump administration's pro-crypto stance, including potential U.S. Bitcoin reserves, has driven optimism and institutional demand.
REX Drone ETF (DRNZ - Free Report) – Up 33.1% YTD
The underlying VettaFi Drone Index tracks the performance of a portfolio of global equity securities of companies that are engaged in drone and unmanned aerial vehicles manufacturing and enabling technologies. The fund charges 65 bps in fees. The rally in defense stocks helped this fund rally in 2026.
Roundhill Meme Stock ETF (MEME - Free Report) – Up 31.9% YTD
The Roundhill Meme Stock ETF seeks to provide capital appreciation.Meme stocks represent a unique force in markets, where retail participation and swift sentiment shifts can cause extreme volatility, per Roundhill Investments. The fund charges 69 bps in fees.
YieldMax MRNA Option Income Strategy ETF (MRNY - Free Report) – Up 30.8% YTD
Moderna Inc.(MRNA) is up 35.6% so far this year. The company upped its 2025 revenue forecast in November.Moderna revised its total revenue guidance for the full year. It now expects total revenues in the range of $1.6-$2.0 billion, compared to the previously guided range of $1.5-$2.2 billion.
The YieldMax MRNA Option Income Strategy ETF is an actively managed fund that seeks to generate monthly income by writing call options on MRNA. MRNY ETF charges 99 bps in fees and it yields 99.78% annually.
Global X Blockchain ETF (BKCH - Free Report) – Up 29.8% YTD
Blockchain miners and infrastructure stocks rebounded sharply, thanks to institutional inflows, and expectations of Fed rate cuts boosting risk assets. The recovery in Bitcoin prices this year also led to the jump.