Trillions ETFs to Watch in 2026
Jan 1, 2026
In this insightful discussion, Athanasios Psarofagis and James Seyffart, both Bloomberg Intelligence ETF analysts, share their expertise on ETFs to keep an eye on for 2026. They delve into intriguing themes like the performance of Vanguard’s VXUS and the rise of political-driven investments like OTGL in Latin America. The duo also highlights the potential risks of leveraged ETFs and discusses innovative funds such as the R&D-focused LRND and the UFO-themed UFOD, showcasing the dynamic landscape of the ETF market.
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Active Bonds Are Making A Comeback
- BINC (iShares Flexible Income ETF) rapidly grew to $15B and outperformed aggregate bonds with lower volatility.
- Its success signals renewed investor appetite for active fixed-income strategies at a reasonable 40 bps fee.
R&D Spending Can Signal Outperformance
- LRND targets large-cap companies with high R&D spending and beat the S&P 500 in 2025.
- The ETF is cheap at 14 bps and offers differentiated exposure to innovation-heavy sectors like healthcare.
International Equities Reclaimed The Spotlight
- VXUS (Vanguard Total International) outperformed the S&P 500 in 2025 and drew record inflows.
- Its long-term resilience and near-constant inflows make it a key barometer for international sentiment and rebalancing flows.