ETF Strategies

In 2026, investors are increasingly focusing on structural growth and long-term themes in ETF strategies, following years marked by geopolitical tensions, technological disruption, and interest rate uncertainty. The central challenge is to position portfolios so they can generate solid returns despite remaining uncertainty factors.

Cost efficiency as a decisive selection criterion

The total expense ratio (TER) becomes the central selection criterion for ETF product choice in 2026. An exchange traded fund (ETF) is a stock exchange-traded index fund that replicates a specific index such as the DAX or MSCI World. The biggest advantage of ETFs over actively managed funds lies in the cost structure: since no expensive fund management team needs to be paid, ETF fees typically range between 0.05% and 0.20% per year. Investors are increasingly scrutinizing this cost efficiency more closely, as even small differences in the TER have significant impacts on net returns over longer investment periods.

Diversification as the foundation of portfolio strategy

For the current year, fund selectors and investment experts recommend broad diversification as a fundamental strategy. Adding sector or thematic ETFs can be interesting, but should be understood as a supplement to a diversified core portfolio. A proven allocation model is the 60/40 split: 60% of the portfolio is invested in equity ETFs such as an MSCI ACWI ETF, 40% in bond ETFs such as the Bloomberg Global Aggregate ETF. This strategy combines growth potential with stabilizing fixed income components.

The MSCI ACWI (All Country World Index) represents equities from developed markets and emerging markets, offering global diversification across approximately 3,000 companies. The Bloomberg Global Aggregate Index comprises sovereign and corporate bonds from various countries and currency zones. Professional portfolio managers attempt to outperform their benchmark with this base allocation through targeted fund selection.

ETFs versus actively managed funds: The returns debate

The debate between passive ETFs and actively managed funds shows a differentiated picture in 2026. A long-term analysis concludes that actively managed funds achieved 31% more returns than an ETF on the MSCI World Index (after costs). This corresponds to an average outperformance of 5.47% per year versus the passive index approach.

These figures put into perspective the widespread narrative that passive ETFs are fundamentally superior. Investors should view both approaches in a differentiated manner: while ETFs impress with low costs and broad market coverage, experienced fund managers can create added value through active stock selection and market timing. The challenge lies in identifying those active funds that justify their higher fees through corresponding outperformance.

Thematic ETF approaches as portfolio supplements

Beyond core allocations, thematic ETF approaches come into focus for investors in 2026. Relevant trend ETFs include products on gold and rare earths. Gold ETFs provide access to the precious metals market without physical storage and traditionally serve as a hedge against inflation and currency risks. ETFs on rare earths enable investments in raw materials that are essential for future technologies such as electric mobility and renewable energy.

However, these thematic additions should be measured and should not exceed 10 to 20% of the total portfolio. The majority of invested capital ideally remains in broadly diversified core ETFs that cover various regions, sectors, and asset classes.

What fund selectors focus on in 2026

Professional fund selectors use several criteria when selecting ETFs in 2026. In addition to the already mentioned expense ratio, factors such as fund volume, trading volume, and tracking difference also play a role. Tracking difference describes the deviation between ETF performance and the performance of the underlying index. A high-quality ETF exhibits the smallest possible tracking difference.

Furthermore, professionals distinguish between core strategies and satellites: core ETFs form the stable foundation of the portfolio with broad market coverage, while satellite ETFs deliberately overweight individual themes or regions to capitalize on additional return opportunities. This combination makes it possible to benefit from long-term trends without jeopardizing the basic stability of the portfolio.

Outlook for ETF investors

The ETF landscape in 2026 is characterized by a return to fundamental investment criteria. After years of turbulent markets, investors are increasingly focused on structured growth rather than short-term speculation. Cost efficiency, broad diversification, and a well-thought-out core-satellite structure form the cornerstones of successful ETF strategies. Investors who consistently implement these principles while considering their personal risk tolerance and investment horizon thereby create a solid foundation for long-term wealth building.