3 Great New ETFs From 2026
These ETFs stand out from the rest.
Brendan McCann: In 2026, over 1,100 ETFs have launched in the US market. More than a quarter of those were trading tools designed for short-term use. Over 300 of the new launches track a single stock or cryptocurrency, either leveraged or packaged with an option strategy. Sifting through the flood of new entrants to find ETFs with long-term investment merit can be challenging, especially given the lack of track records. However, based on the investment teams and strategies, the following three ETFs could be a good fit.
JPMorgan Equity Premium Yield ETF
The first is JPMorgan Equity Premium Yield ETF ROCY launched in March. It takes a nuanced approach to high income. The ETF combines two engines, an actively managed portfolio of US stocks and an options overlay of covered-call spreads. The stock portfolio uses J.P. Morgan’s proprietary data-science-driven investment approach to construct a portfolio with roughly 10% to 15% less volatility than the S&P 500 while maximizing risk-adjusted returns.
That piece brings in a fraction of the ETF’s income. The options engine delivers most of the portfolio’s yield by staggering two-week short call spreads. Like a traditional covered-call strategy, the ETF sells calls to generate income. If the market rallies above the call strike price, the ETF misses out on that upside. However, ROCY also buys call options at a higher price. If the market rallies far enough, the ETF can reparticipate in the upside. ROCY gains its covered-call exposure directly instead of using equity-linked notes like JPMorgan Equity Premium Income ETF JEPI does. That means a portion of ROCY’s income may be classified as return of capital. That benefits investors and taxable accounts since taxes on return of capital are deferred. When investors do sell the shares, they can potentially benefit from long-term capital gains tax instead of ordinary income tax.
Vanguard Target Maturity Corporate Bond Suite
Vanguard unveiled a suite of 10 target maturity corporate bond ETFs in March, ranging from maturity dates in 2027 through 2036. The longest maturity available is Vanguard Target Maturity 2036 Corporate Bond ETF VBCJ. Most bond ETFs hover within a maturity range and stick to that range over the life of the fund. Investors often have goals with specific time horizons. As investors get closer to their goals, they’ll likely want to pare down risk. An intermediate-core ETF may be appropriate six years away from a goal, but would be likely too risky when an investor is only one year away. These ETFs solve that problem by letting investors pick a specific maturity date, offering an experience that mirrors holding individual bonds. As the underlying bonds get closer to their final payout, the price volatility and interest rate risk of the ETF steadily drop. As bonds mature in the ETF’s final year, it will convert the principal payments into cash or short-term instruments, eventually distributing all the assets back to investors at year-end.
DFA US Micro Cap ETF
Rounding out the list is DFA US Micro Cap ETF DFMC, also launched in March. This fund made history as the very first active ETF share class created from an existing mutual fund. It’s the only ETF in this list with a Morningstar Medalist Rating since it inherits the mutual fund’s Gold rating as of October 2026. DFMC captures the smallest corner of the US stock market, targeting stocks that land in the bottom 5% by market cap. The portfolio managers avoid stocks with high price/book ratios, poor profitability, and aggressive asset growth since these stocks have been associated with poor performance. It weights stocks by market cap, which helps curb turnover. DFA’s traders have flexibility to substitute a stock for another with similar size and value characteristics, and they can trade patiently to cut back on transaction costs and taxes. Solid construction, low fees, and conscious trading should keep the ETF competitive in the long run.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
