Top-Performing Stock ETFs

Stock exchange-traded funds, or equity ETFs, are often low-cost, tax-efficient instruments for tracking popular indexes or leveraging experienced managers’ choices to beat the market. The best 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 third quarter of 2026, the top-performing stock ETFs included large blend fund Simplify US Equity PLUS Managed Futures Strategy ETF CTAP and large growth fund ALPS O’Shares Global Internet Giants ETF Shares OGIG. 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, four funds fell into the large growth category, where the average name rose 1.19% in the third quarter.

The 10 Best-Performing ETFs for Q3 2026

1. Simplify US Equity PLUS Managed Futures Strategy ETF CTAP
2. ALPS O’Shares Global Internet Giants ETF Shares OGIG
3. Dana Unconstrained Equity ETF DUNK
4. Bushido Capital US SMID Cap Equity ETF RNIN
5. Bushido Capital US Equity ETF SMRI
6. Yieldmaxtm Magnificent 7 Fund Of Option Income ETFs YMAG
7. Nomura Focused Large Growth ETF LRGG
8. NYLIM US Large Cap R&D Leaders ETF LRND
9. Pacer US Cash Cows 100 ETF COWZ
10. Level Four Large Cap Growth Active ETF LGRO

Metrics for the Best-Performing Stock ETFs

Simplify US Equity PLUS Managed Futures Strategy ETF

• Morningstar Rating
  : N/A
• Expense Ratio
  : 0.1%
• Morningstar Category
  : Large Blend

The $166.1 million Simplify US Equity PLUS Managed Futures Strategy ETF was the best-performing ETF in the third quarter, with a 12.71% gain. The actively managed Simplify Asset Management ETF beat the 1% gain on the average fund in Morningstar’s large blend category for the quarter. The fund launched in December 2025 and does not have a one-year record.

The Simplify US Equity PLUS Managed Futures Strategy ETF has not yet been awarded a Morningstar Medalist Rating.

ALPS O’Shares Global Internet Giants ETF Shares

• Morningstar Rating: ★
• Expense Ratio: 0.48%
• Morningstar Category: Large Growth

The second-best-performing ETF in the third quarter was the $101.2 million ALPS O’Shares Global Internet Giants ETF Shares. The passively managed ALPS ETF returned 12.34%, outperforming the average large growth fund, which gained 1.19%. Over the last year, the fund has fallen 13.14%, underperforming the 10.34% gain on funds in its category, placing it in the 100th percentile for the period.

The Neutral-rated ALPS O’Shares Global Internet Giants ETF Shares launched in June 2018.

Dana Unconstrained Equity ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.75%
• Morningstar Category: Large Blend

The $169.9 million Dana Unconstrained Equity ETF was the third-best-performing ETF in the third quarter, with an 11.59% gain. The actively managed Dana ETF beat the 1% gain on the average fund in Morningstar’s large blend category for the quarter. Over the last year, the fund has gained 11.08%, underperforming the 12.99% gain on funds in its category, placing it in the 71st percentile for the period.

The Dana Unconstrained Equity ETF has not yet been awarded a Morningstar Medalist Rating.

Bushido Capital US SMID Cap Equity ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.68%
• Morningstar Category: Mid-Cap Value

The $197.3 million Bushido Capital US SMID Cap Equity ETF ranked fourth for the quarter, returning 10.77%. The None ETF, which is actively managed, beat the 1.63% loss on the average mid-cap value fund. Over the past year, the fund has risen 31.37%, outperforming the 12.77% gain on funds in its category, placing it in the third percentile for the period.

The Bushido Capital US SMID Cap Equity ETF has not yet been awarded a Morningstar Medalist Rating.

Bushido Capital US Equity ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.71%
• Morningstar Category: Mid-Cap Value

The $667 million Bushido Capital US Equity ETF was the fifth-best-performing ETF in the third quarter, with a 9.90% gain. The actively managed None ETF beat the 1.63% loss on the average fund in Morningstar’s mid-cap value category for the quarter. Over the last year, the fund has gained 31.02%, outperforming the 12.77% gain on funds in its category, placing it in the fourth percentile for the period.

The Bushido Capital US Equity ETF has not yet been awarded a Morningstar Medalist Rating.

Yieldmaxtm Magnificent 7 Fund Of Option Income ETFs

• Morningstar Rating: N/A
• Expense Ratio: 1.34%
• Morningstar Category: Large Blend

The sixth best-performing ETF in the third quarter was the $293.4 million Yieldmaxtm Magnificent 7 Fund Of Option Income ETFs. The actively managed YieldMax ETF returned 8.93%, outperforming the average large blend fund, which gained 1.00%. Over the last year, the fund has climbed 10.12%, underperforming the 12.99% gain on funds in its category, placing it in the 77th percentile for the period.

The Yieldmaxtm Magnificent 7 Fund Of Option Income ETFs has a Negative Morningstar Medalist Rating, meaning Morningstar analysts expect it to underperform the average fund in its category over a market cycle.

Nomura Focused Large Growth ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.44%
• Morningstar Category: Large Growth

The $287.8 million Nomura Focused Large Growth ETF ranked seventh for the quarter, returning 8.73%. The Nomura ETF, which is actively managed, beat the 1.19% gain on the average large growth fund. Over the past year, the fund has lost 0.31%, underperforming the 10.34% gain on funds in its category, placing it in the 93rd percentile for the period.

The Neutral-rated Nomura Focused Large Growth ETF launched in May 2024.

NYLIM US Large Cap R&D Leaders ETF

• Morningstar Rating: ★★★★
• Expense Ratio: 0.14%
• Morningstar Category: Large Growth

The $455.8 million NYLIM US Large Cap R&D Leaders ETF was the eighth-best-performing ETF in the third quarter, with an 8.38% gain. The passively managed New York Life Investment Management ETF beat the 1.19% gain on the average fund in Morningstar’s large growth category for the quarter. Over the last year, the fund has gained 20.38%, outperforming the 10.34% gain on funds in its category, placing it in the 11th percentile for the period.

The Gold-rated NYLIM US Large Cap R&D Leaders ETF launched in February 2022.

Pacer US Cash Cows 100 ETF

• Morningstar Rating: ★★★★
• Expense Ratio: 0.49%
• Morningstar Category: Mid-Cap Value

The ninth-best-performing ETF in the third quarter was the $18.6 billion Pacer US Cash Cows 100 ETF. The passively managed Pacer ETF returned 7.98%, outperforming the average mid-cap value fund, which dropped 1.63%. Over the last year, the fund has climbed 18.57%, outperforming the 12.77% gain on funds in its category, placing it in the 17th percentile for the period.

The Neutral-rated Pacer US Cash Cows 100 ETF launched in December 2016.

Level Four Large Cap Growth Active ETF

• Morningstar Rating: ★★★★
• Expense Ratio: 0.5%
• Morningstar Category: Large Growth

The $144.7 million Level Four Large Cap Growth Active ETF ranked tenth for the quarter, returning 7.96%. The ALPS ETF, which is actively managed, beat the 1.19% gain on the average large growth fund. Over the past year, the fund has risen 17.14%, outperforming the 10.34% gain on funds in its category, placing it in the 18th percentile for the period.

The Bronze-rated Level Four Large Cap Growth Active ETF launched in August 2023.

How to Find 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 invest based on a particular factor or a combination of them. 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, available to Morningstar Investor members, screens ETFs based on various criteria, including asset class, Morningstar Category, Medalist Rating, and fees.
• Visit Morningstar’s ETF page for the latest articles and videos from our ETF specialists.