1 Top ETF to Load Up on in 2026

• The commencement of 2026 has featured a large displacement distant from tech and the "Magnificent Seven" stocks.

• We're opening to spot cyclicals and tiny caps instrumentality implicit arsenic investors interest astir the deteriorating labour marketplace and geopolitics.

• Equal-weighting the S&P 500 allows you to seizure the existent marketplace rotation amended but keeps your large-cap exposure.

• 10 stocks we similar amended than Invesco S&P 500 Equal Weight ETF ›

It's inactive aboriginal successful 2026, but truthful far, 1 of the market's biggest stories has been improved marketplace breadth. Tech stocks are lagging the S&P 500 (SNPINDEX: ^GSPC), portion industrials, energy, and antiaircraft sectors are each beating the scale by a wide margin. Small caps are already beating ample caps by much than 7% done Jan. 20, 2026.

Investors who person been overweighting tech and the "Magnificent Seven" stocks successful their portfolios mightiness request to revisit their strategies. Concerns astir the slowing labour marketplace and the geopolitical backdrop are creating capable uncertainty that investors look nary longer consenting to bid up valuations and absorption lone connected growth.

If pivoting into tiny caps isn't rather your thing, the Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP) mightiness be. It does precisely what you'd deliberation -- invests successful each S&P 500 components successful adjacent allotments. Charging conscionable 0.20% annually, it's a bully mode to support your large-cap vulnerability but instrumentality vantage of different areas of the marketplace beyond tech.

The evident vantage of an equal-weight S&P 500 is that it gets you distant from the dense Magnificent Seven banal attraction contented that presently exists with the accepted index. Those 7 companies relationship for astir 35% of the S&P 500. That's a batch riding connected the occurrence of conscionable a fistful of companies.

The S&P 500 is costly capable arsenic it is. It presently trades astatine astir 22 times guardant net expectations, astir its highest level since the tech bubble. The Magnificent Seven stocks collectively commercialized astatine astir 27 times earnings. That's not arsenic precocious arsenic it's been successful the past, and determination has been beardown net maturation helping to enactment that valuation, but it does suggest that these stocks are priced for perfection.

If thing changes successful the inheritance oregon momentum begins to slow, tech stocks could rapidly statesman underperforming. I deliberation we're seeing that hap close now.

Tech vulnerability inactive exists successful the equal-weight S&P 500, but it's a overmuch much subdued 13% of the portfolio, making it lone the third-largest assemblage holding. Industrials (16%), financials (15%), healthcare (12%), and user discretionary (10%) circular retired the apical 5 sectors. Investors successful this money get overmuch much rounded-out vulnerability to cyclicals and antiaircraft sectors successful summation to the fashionable maturation areas of the market.