As of early 2026, major market indexes are experiencing volatility, with technology stocks declining and increasing stress in private credit, against the backdrop of geopolitical tensions in the Middle East. However, certain thematic investment groups, specifically the Global X Lithium & Battery Tech ETF (LIT), VanEck Semiconductor ETF (SMH), and iShares Latin America 40 ETF (ILF), have distinguished themselves by reaching new highs, reflecting strong underlying demand.
The Global X Lithium & Battery Tech ETF (LIT) is benefitting from rising demand in the electrification supply chain, often linked to electric vehicles and grid storage. Meanwhile, the VanEck Semiconductor ETF (SMH) demonstrates resilience in chip production, particularly for AI-related technology, showing positive earnings revisions. The iShares Latin America 40 ETF (ILF) is riding a wave of improved capital flows and relatively firm commodity prices in Latin American markets, illustrating investor interest in diversifying beyond U.S. stocks.
Overall, these ETFs are indicative of sustained capital investment in sectors tied to real economic activity, distinguishing them in a market lacking broader leadership. Their performance highlights a multi-year investment cycle supported by structural demand, government policy, and corporate spending.
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