The most fashionable trades on Wall Street this year have been artificial intelligence stocks and chipmakers.
However, mega-cap darling Nvidia Corp. (ticker: NVDA) was down about 15% from its spring highs before its recent uptick. Some tactical investors are looking to seize on stock pullback as a buying opportunity, while others are searching for the next hot trade.
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There’s no way to know for certain what the rest of the year holds for stocks, let alone the fate of . But with economic data continuing to hold up despite rising inflation, many investors are still looking for “risk-on” trades that prioritize growth.
The following list of the seven best ETFs to buy features targeted funds with about $200 million or more in assets. Each carries elevated risk because of its concentrated exposure to a single theme, but as the last couple of years have demonstrated, focused investments can deliver outsized returns when market trends move in your favor.
| ETF | Assets under management | Expense ratio |
| Global X Artificial Intelligence & Technology ETF () | $10 billion | 0.68% |
| Invesco Semiconductors ETF () | $2.5 billion | 0.56% |
| State Street SPDR S&P Oil & Gas Equipment & Services ETF () | $366 million | 0.35% |
| United States Oil Fund LP () | $1.7 billion | 0.86% |
| First Trust NYSE Arca Biotechnology Index Fund () | $2.7 billion | 0.55% |
| Global X MSCI Colombia ETF () | $208 million | 0.62% |
| iShares MSCI Europe Financials ETF () | $4.3 billion | 0.49% |
Global X Artificial Intelligence & Technology ETF ()
Assets: $10 billion Expense ratio: 0.68%
Recent Big Tech earnings reports have revealed growing skepticism toward some artificial intelligence stocks, as investors are no longer satisfied with compelling narratives and heavy spending alone; they’re demanding profitability and clear proof of return on investment. AIQ has been caught up in this recent volatility, with several of its roughly 80 holdings, including Meta Platforms Inc. (), underperforming in recent months. However, the fund’s primary appeal remains the long-term potential of AI, so this cooling-off period could present a buying opportunity for investors who remain bullish on the sector.
Invesco Semiconductors ETF ()
Assets: $2.5 billion Expense ratio: 0.56%
PSI invests in chipmakers through a dynamic Invesco sector index rather than a traditional market-cap-weighted benchmark. Its methodology evaluates U.S. using quantitative factors such as price and earnings momentum. This factor-based approach aims to outperform by emphasizing companies with stronger fundamentals. As a result, top holdings include Applied Materials Inc. (), which remains up about 180% over the past 12 months, outperforming many peers in this volatile sector. Compared with other , PSI employs a more active-style methodology. While it is relatively expensive for a sector ETF, it offers a momentum-focused strategy for investors seeking a more selective way to play AI.
State Street SPDR S&P Oil & Gas Equipment & Services ETF ()
Assets: $366 million Expense ratio: 0.35%
Switching gears to another major trend of 2026, XES has benefited from rising oil prices fueled by the ongoing conflict in Iran, which continues with no clear resolution in sight. Supply disruptions and have supported higher energy prices, boosting demand for oilfield service companies as producers expand operations to capitalize on elevated crude prices. Holdings such as offshore services leader Oceaneering International Inc. () and wellhead technology specialist Cactus Inc. () exemplify the types of companies benefiting from this environment.
United States Oil Fund LP ()
Assets: $1.7 billion Expense ratio: 0.86%
USO is one of the most direct ways to invest in oil through an ETF. Rather than owning , the fund is designed to track the daily price movements of West Texas Intermediate crude oil. Ongoing supply disruptions tied to the conflict in Iran have pushed oil prices from about $57 per barrel at the end of 2025 to highs near $120 this year, with prices still hovering around $90 just a couple of weeks ago. Given the tenuous nature of ongoing peace talks between the U.S. and Iran, it’s hard to predict which way oil prices will move in the weeks and months ahead. But investors looking to profit directly from rising oil prices may prefer the commodity-linked USO over a traditional energy equity fund.
First Trust NYSE Arca Biotechnology Index Fund ()
Assets: $2.7 billion Expenses: 0.55%
With shares up about 50% over the past 12 months, FBT has quietly delivered impressive performance that has been overshadowed by commodity and AI stocks. While the First Trust fund invests in many , it’s not simply a collection of small, early-stage biotech companies. Its concentrated portfolio of roughly 30 holdings includes established leaders such as Regeneron Pharmaceuticals Inc. (), with an average market capitalization of about $17 billion across the portfolio. This approach allows investors to look beyond mega-cap while gaining exposure to the next tier of healthcare innovators.
Global X MSCI Colombia ETF ()
Assets: $208 million Expenses: 0.62%
The smallest — and perhaps riskiest — fund on this list, COLO holds roughly 30 companies that provide direct exposure to Colombia’s economy. Many investors have been cautious about the country in recent years because of elevated inflation, fiscal deficits and political uncertainty. However, those concerns are no longer viewed as unique, particularly given broader global economic and political challenges. With companies operating in sectors ranging from renewable energy to fintech, Colombia could be an worth watching, especially as the “nearshoring” trend encourages U.S. companies to shift supply chains out of Asia and closer to trusted partners throughout the Americas.
iShares MSCI Europe Financials ETF ()
Assets: $4.3 billion Expense ratio: 0.49%
Major policy shifts across the E.U. have become an important driver of , as the bloc’s focus on “strategic autonomy” from regions such as China and the U.S. has supported domestic industries. Financial companies have been among the biggest beneficiaries, as banking activity increasingly shifts toward major eurozone financial centers. EUFN has capitalized on this trend through top holdings such as Spain’s Banco Santander SA () and Germany’s Allianz SE (ALV.DE), both of which have performed well over the past two years. For investors seeking geographic diversification and a growth story beyond U.S. technology and energy stocks, EUFN offers an attractive alternative.
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Update 08/07/26: This story was published at an earlier date and has been updated with new information.
