Top-Performing Stock ETFs
US Vegan Climate ETF and Castellan Targeted Equity ETF were among the best-performing ETFs in Q2 2026.
Stock exchange-traded funds, or equity ETFs, are often low-cost, tax-efficient instruments for investors to track popular indexes or leverage experienced manager choices to beat the market. The best ones serve as low-cost building blocks in a portfolio, and unlike open-end mutual funds, all ETFs are traded throughout the day on an exchange.
In the second quarter of 2026, the top-performing stock ETFs included large growth fund US Vegan Climate ETF VEGN and mid-cap blend fund Castellan Targeted Equity ETF CTEF. Data in this article is sourced from Morningstar Direct.
Screening for the Best-Performing ETFs
When evaluating ETFs, investors should focus on long-term returns across multiple years and market cycles. However, short-term returns can provide valuable information about biases within strategies.
To find the quarter’s best-performing stock ETFs, we screened the Morningstar US equity category for those that trade within the United States. We excluded exchange-traded notes and ETFs with less than $100 million in total assets. Within our list, five funds fell into the large growth category, where the average name rose 18.71% in the second quarter.
The 10 Best-Performing ETFs of Q2 2026
- US Vegan Climate ETF VEGN
- Castellan Targeted Equity ETF CTEF
- Optimize Strategy Index ETF OPTZ
- Mig Core ETF MIGO
- Invesco S&P 500 High Beta ETF SPHB
- Invesco S&P Spin-Off ETF CSD
- Alger Concentrated Equity ETF CNEQ
- Mango Growth ETF GARY
- First Trust Innovation Leaders ETF ILDR
- Alger 35 ETF ATFV
Metrics for the Best-Performing Stock ETFs
US Vegan Climate ETF
- : ★★★★Morningstar Rating
- : 0.6%Expense Ratio
- : Large GrowthMorningstar Category
The $186.2 million US Vegan Climate ETF ranked first for the quarter, returning 45.41%. The Beyond ETF, which is passively managed, beat the 18.71% gain on the average large growth fund. Over the past year, the fund has risen 47.61%, outperforming the 17.45% gain on funds in its category, placing it in the 2nd percentile for the period.
The Neutral-rated US Vegan Climate ETF launched in September 2019.
Castellan Targeted Equity ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.45%
- Morningstar Category: Mid-Cap Blend
The $667.8 million Castellan Targeted Equity ETF was the second-best-performing ETF in the quarter, with a 38.24% gain. The actively managed Castellan ETF beat the 14.50% gain on the average fund in Morningstar’s mid-cap blend category for the quarter. Over the last year, the fund has gained 80.17%, outperforming the 23.67% gain on funds in its category, placing it in the 1st percentile for the period.
The Castellan Targeted Equity ETF has not yet been awarded a Morningstar Medalist Rating.
Optimize Strategy Index ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.25%
- Morningstar Category: Mid-Cap Blend
The third-best-performing ETF in the quarter was the $277.1 million Optimize Strategy Index ETF. The passively managed Optimize Financial ETF returned 37.36%, outperforming the average mid-cap blend fund, which gained 14.50%. Over the last year, the fund has climbed 61.86%, outperforming the 23.67% gain on funds in its category, placing it in the 3rd percentile for the period.
The Optimize Strategy Index ETF has not yet been awarded a Morningstar Medalist Rating.
Mig Core ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.45%
- Morningstar Category: Large Blend
The $775.9 million Mig Core ETF was the fourth-best-performing ETF in the second quarter, with a 34.49% gain. The actively managed None ETF beat the 14.14% gain on the average fund in Morningstar’s large blend category for the quarter. The fund launched in February 2026 and does not have a one-year record.
The Mig Core ETF has not yet been awarded a Morningstar Medalist Rating.
Invesco S&P 500 High Beta ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.25%
- Morningstar Category: Mid-Cap Blend
The $1 billion Invesco S&P 500 High Beta ETF ranked fifth for the quarter, returning 34.30%. The Invesco ETF, which is passively managed, beat the 14.50% gain on the average mid-cap blend fund. Over the past year, the fund has risen 60.69%, outperforming the 23.67% gain on funds in its category, placing it in the 3rd percentile for the period.
The Silver-rated Invesco S&P 500 High Beta ETF launched in May 2011.
Invesco S&P Spin-Off ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.65%
- Morningstar Category: Mid-Cap Blend
The $223.2 million Invesco S&P Spin-Off ETF was the sixth-best-performing ETF in the quarter, with a 32.71% gain. The passively managed Invesco ETF beat the 14.50% gain on the average fund in Morningstar’s mid-cap blend category for the quarter. Over the last year, the fund has gained 78.69%, outperforming the 23.67% gain on funds in its category, placing it in the 2nd percentile for the period.
The Neutral-rated Invesco S&P Spin-Off ETF launched in December 2006.
Alger Concentrated Equity ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.56%
- Morningstar Category: Large Growth
The seventh-best-performing ETF in the quarter was the $726.1 million Alger Concentrated Equity ETF. The actively managed Alger ETF returned 32.18%, outperforming the average large growth fund, which gained 18.71%. Over the last year, the fund has climbed 39.72%, outperforming the 17.45% gain on funds in its category, placing it in the 6th percentile for the period.
The Bronze-rated Alger Concentrated Equity ETF launched in April 2024.
Mango Growth ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.77%
- Morningstar Category: Large Growth
The $293.6 million Mango Growth ETF ranked eighth for the quarter, returning 31.33%. The Mango Growth ETF, which is actively managed, beat the 18.71% gain on the average large growth fund. The fund launched in December 2025 and does not have a one-year record.
The Mango Growth ETF has not yet been awarded a Morningstar Medalist Rating.
First Trust Innovation Leaders ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.75%
- Morningstar Category: Large Growth
The ninth-best-performing ETF in the second quarter was the $298.9 million First Trust Innovation Leaders ETF. The actively managed First Trust ETF returned 31.32%, outperforming the average large growth fund, which gained 18.71%. Over the last year, the fund has climbed 33.42%, outperforming the 17.45% gain on funds in its category, placing it in the 13th percentile for the period.
The Neutral-rated First Trust Innovation Leaders ETF launched in May 2021.
Alger 35 ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.56%
- Morningstar Category: Large Growth
The $210.5 million Alger 35 ETF was the tenth-best-performing ETF in the second quarter, with a 31.26% gain. The actively managed Alger ETF beat the 18.71% gain on the average fund in Morningstar’s large growth category for the quarter. Over the last year, the fund has gained 39.97%, outperforming the 17.45% gain on funds in its category, placing it in the 5th percentile for the period.
The Gold-rated Alger 35 ETF launched in May 2021.
What Are ETFs?
Exchange-traded funds are investments that trade throughout the day on stock exchanges, much like individual stocks. They differ from traditional mutual funds—known as open-end funds—which can only be bought or sold at a single price each day. Historically, ETFs have tracked indexes, but in recent years, more have been actively managed. ETFs cover a range of asset classes, including stocks, bonds, commodities, and most recently, cryptocurrency.
ETFs offer investors an efficient way to gain exposure to the markets, often with low fees and ease of buying and selling. They also generally offer higher tax efficiency than open-end funds.
How to Find the Top ETFs for the Long Term
ETFs are often equated with low-cost indexing. However, the ETF marketplace has grown increasingly complicated. Some ETFs track a very narrow part of the market or pursue specific themes. Some ETFs invest based on a particular factor or a combination of factors. And now there are actively managed ETFs.
Use these Morningstar resources to help find the best ETFs for the long term:
- Learn about the types of exchange-traded funds, their costs, and how to invest in them by reading Morningstar’s Guide to ETF Investing.
- Find the highest-rated ETFs across all investment categories in The Best ETFs and How They Fit in Your Portfolio.
- Review Morningstar director of personal finance Christine Benz’s suggested ETF portfolios for those saving for or already in retirement, including Tax-Efficient Retirement-Saver Portfolios for ETF Investors, Tax-Sheltered Retirement-Saver Portfolios for ETF Investors, ESG Tax-Sheltered Retirement-Saver Portfolios for ETF Investors, Tax-Sheltered Retirement-Bucket Portfolios for ETF Investors, and Tax-Sheltered ESG Retirement-Bucket Portfolios for ETF Investors.
- Research ETFs based on your personal selection criteria by using our Morningstar Investor Screener. The tool, which is available to Morningstar Investor members, allows investors to screen ETFs through various criteria, including asset class, Morningstar Category, Medalist Rating, and fee level.
- Visit Morningstar’s ETF page for the latest articles and videos from our ETF specialists.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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