Investment Insights Ahead of 2026
Analyst Matt Frankel highlights three ETFs positioned for strong performance as we approach 2026. The Vanguard Russell 2000 ETF (NASDAQ: VTWO) is noted for its potential as small-cap stocks currently have their lowest valuations relative to large-cap stocks since the 1990s, trading at an average of 2.0 times book value compared to 5.2 times for the S&P 500. Additionally, the Vanguard Real Estate ETF (NYSEMKT: VNQ), currently offering a 4% dividend yield, could thrive as interest rates decrease, making it a viable option in the recovering real estate sector.
Furthermore, the Ark Autonomous Technology & Robotics ETF (NYSEMKT: ARKQ) is highlighted as a prime investment for those looking to capitalize on the AI revolution, with a focus on smaller, innovative companies instead of well-known giants. This ETF’s top holdings include Tesla, Teradyne, and Kratos Defense & Security Solutions.
