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Focus on secular growth: power, grid and clean energy ETFs are likely to outperform.
Broad and quality plays anchor portfolio diversification and resilience amid volatility.
Concerns around the Iran conflict appear to be easing in investors’ minds, with markets increasingly looking past geopolitical risks and focusing on growth prospects. Goldman Sachs strategist Ben Snider expects the S&P 500 to reach 7,600 by the year-end. The outlook is driven by continued earnings growth and improving sentiment.
What's Driving the Rally
Despite headwinds like slowing U.S. growth, elevated oil prices, and $4 gasoline, equities have shown resilience. The S&P 500 has surged 12% since March 30, marking its strongest rally since 2020 and echoing rebounds seen in 2009 and 2020, when markets moved ahead of clear economic recovery signals, as quoted on Yahoo Finance.
Positioning: Where Investors Should Look
Goldman recommends shifting toward secular growth stocks with strong, company-specific drivers and limited exposure to AI disruption. Key areas of focus include firms linked to power and infrastructure investment, rather than those heavily dependent on broad economic cycles, as quoted in the above-mentioned Yahoo Finance article.
The current scenario indicates that equities are likely to rebound if the war situation does not worsen materially. Against this backdrop, below we highlight a few exchange-traded fund (ETF) investing areas that could be aligned with Goldman Sachs’ suggestions.
The S&P 500 recently topped the 7,000-mark on truce hopes. Additionally, steady earnings momentum has supported the rally. The ETF SPY has gained about 8% over the past month (as of April 20, 2026).
Early Q1 results from about 10% of the S&P 500 companies reporting so far support a steadily improving earnings outlook. The underlying WisdomTree U.S. Large-cap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. stock market. The fund added about 7.8% over the past month.
The current energy crisis amid the Iran war has led several countries to opt for alternative energy sources. Hence, clean energy has received more popularity in recent days. The underlying Nasdaq Clean Edge Smart Grid Infrastructure Index tracks the performance of common stocks in the grid and electric energy infrastructure sector. The fund has gained about 11% over the past month.
Hydrogen is one such alternative energy option. The expansion of the AI industry has increased the demand for clean and sustainable energy, with hydrogen emerging as a potential fuel.
The underlying Solactive Global Hydrogen Index provides exposure to companies that are positioned to benefit from further advances in the field of hydrogen technology. The product charges 0.50% in annual fees. The fund has added about 26% over the past month.
Growth stocks are likely to offer stellar returns. This ETF puts about one-third of its assets in Big Tech stocks. While Big Tech plays a critical role in AI disruption, the group has diversified tech exposure. The fund has added about 8% over the past month.
The underlying Morningstar Wide Moat Focus Index tracks the overall performance of the 20 most attractively priced companies with sustainable competitive advantages.Wide-moat companies have stronger pricing power, meaning they are better-positioned to pass on rising inflation-related costs directly to consumers, should any energy-related inflation risks arise. MOAT is up 5% over the past month.
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Goldman's Playbook Amid Iran War: ETFs to Follow
Key Takeaways
Concerns around the Iran conflict appear to be easing in investors’ minds, with markets increasingly looking past geopolitical risks and focusing on growth prospects. Goldman Sachs strategist Ben Snider expects the S&P 500 to reach 7,600 by the year-end. The outlook is driven by continued earnings growth and improving sentiment.
What's Driving the Rally
Despite headwinds like slowing U.S. growth, elevated oil prices, and $4 gasoline, equities have shown resilience. The S&P 500 has surged 12% since March 30, marking its strongest rally since 2020 and echoing rebounds seen in 2009 and 2020, when markets moved ahead of clear economic recovery signals, as quoted on Yahoo Finance.
Positioning: Where Investors Should Look
Goldman recommends shifting toward secular growth stocks with strong, company-specific drivers and limited exposure to AI disruption. Key areas of focus include firms linked to power and infrastructure investment, rather than those heavily dependent on broad economic cycles, as quoted in the above-mentioned Yahoo Finance article.
Upbeat Earnings Season in Focus
Meanwhile, we are off to a strong start to the Q1 earnings season, with companies not only comfortably surpassing consensus estimates but also offering a reassuring outlook on the economy despite elevated energy costs and other risks. Early in the reporting cycle, the momentum is especially evident on the revenue front, both in terms of growth rates and magnitude of positive surprises.
ETF Areas to Tap
The current scenario indicates that equities are likely to rebound if the war situation does not worsen materially. Against this backdrop, below we highlight a few exchange-traded fund (ETF) investing areas that could be aligned with Goldman Sachs’ suggestions.
State Street SPDR S&P 500 ETF Trust (SPY - Free Report)
The S&P 500 recently topped the 7,000-mark on truce hopes. Additionally, steady earnings momentum has supported the rally. The ETF SPY has gained about 8% over the past month (as of April 20, 2026).
WisdomTree U.S. LargeCap ETF (EPS - Free Report)
Early Q1 results from about 10% of the S&P 500 companies reporting so far support a steadily improving earnings outlook. The underlying WisdomTree U.S. Large-cap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. stock market. The fund added about 7.8% over the past month.
First Trust NASDAQ Clean Edge Smart Grid Infrastructure ETF (GRID - Free Report)
The current energy crisis amid the Iran war has led several countries to opt for alternative energy sources. Hence, clean energy has received more popularity in recent days. The underlying Nasdaq Clean Edge Smart Grid Infrastructure Index tracks the performance of common stocks in the grid and electric energy infrastructure sector. The fund has gained about 11% over the past month.
Global X Hydrogen ETF (HYDR - Free Report)
Hydrogen is one such alternative energy option. The expansion of the AI industry has increased the demand for clean and sustainable energy, with hydrogen emerging as a potential fuel.
The underlying Solactive Global Hydrogen Index provides exposure to companies that are positioned to benefit from further advances in the field of hydrogen technology. The product charges 0.50% in annual fees. The fund has added about 26% over the past month.
Capital Group Growth ETF (CGGR - Free Report)
Growth stocks are likely to offer stellar returns. This ETF puts about one-third of its assets in Big Tech stocks. While Big Tech plays a critical role in AI disruption, the group has diversified tech exposure. The fund has added about 8% over the past month.
VanEck Morningstar Wide Moat ETF (MOAT - Free Report)
The underlying Morningstar Wide Moat Focus Index tracks the overall performance of the 20 most attractively priced companies with sustainable competitive advantages.Wide-moat companies have stronger pricing power, meaning they are better-positioned to pass on rising inflation-related costs directly to consumers, should any energy-related inflation risks arise. MOAT is up 5% over the past month.