Top Performing Investments November 2025 - January 2026: Three-Month Analysis
Written by Boring Money
13 Feb, 2026
The three months ending January 2026 saw a dramatic market shift as technology's two-year dominance finally ended. Investors balked at mega-cap AI spending programmes, sending tech stocks down 9.9%, whilst geopolitical tensions drove materials (+32.5%) and energy (+39%) to extraordinary gains. European banks extended their remarkable rally with 17.5% returns, whilst previously unloved 'quality' sectors, healthcare (+3.8%) and consumer staples (+3.5%), staged comebacks as investors sought safer ground. Trump's interventions in Venezuela and Iran, combined with dollar weakness (down 3%), fuelled resource nationalism and safe-haven flows into precious metals. Strategic metals funds, uranium Trusts, and defence ETFs dominated performance charts, signalling a rotation away from US tech concentration toward commodities, European financials, and defensive sectors.
What Happened in Markets November - January: Key Investment Trends
It was a mixed quarter for global risk assets, with geopolitics playing a notable role in the movement of global financial markets. While there was significant strength in areas such as natural resources and energy, investors finally started to cool on the technology trade. With technology now such a significant share of global indices
, its weakness weighed on overall equity returns.The weakness in technology had two main pillars. The first was a response to fourth quarter earnings figures from mega-caps such as Microsoft, Amazon, and Alphabet. They showed capital spending programmes far ahead of expectations. Investors started to worry that these companies were no longer funding spending out of cash flow, but had turned to bond markets to raise debt. With little tangible sign of AI’s much vaunted benefits, investors were no longer willing to support the sector’s high valuations.
The second pillar was the weakness in the software sector. Over the final quarter of the year, investors became increasingly nervous about the potential impact of AI on software companies. The launch of a number of plug-ins for Anthropic’s Claude tool sent tremors through the market. This hurt groups such as ServiceNow, Adobe, and Salesforce, but also UK groups such as RELX and LSEG. Overall, the technology sector dropped 9.9% over the quarter.
The strongest sectors over the quarter were materials and energy. Both saw most of their gains in January and were fuelled by unpredictable geopolitics. Donald Trump’s interventions in Venezuela and Iran created some volatility in the energy markets. The oil price climbed by around $10 a barrel between mid-December and late January[1].
The interventions also created worries over erratic US policymaking. Donald Trump’s threats over Greenland presented the US as a feckless friend to European allies. The result was a wobbly Dollar. It fell around 3% over the quarter[2], having achieved some measure of stability since the middle of 2025. It may have also contributed to the weakness in US technology companies, as investors sought to lower their exposure to US assets. ‘Safe haven’ gold and silver were the main beneficiaries.
Healthcare was also strong over the quarter, with the sector rising 3.8%. This continues its recovery from a difficult year in 2025. Uncertainty surrounding drug pricing, tariffs, and the implementation of health policy under Robert F. Kennedy Junior held back share prices for much of the year, but agreements between pharmaceutical companies and the US government have helped spur share prices.
Consumer staples stocks were also strong. These had been hit hard by worries over the impact of GLP 1 drugs, but had started to look cheap relative to other sectors and to their own history. They rose 3.5% over the quarter, with particular strength in November and January. They were helped by better inflation data in the US, UK, and Eurozone, and falling interest rates, which should put more cash in consumers’ pockets.
The strength of consumer staples and healthcare were part of a broader recovery for ‘quality’ stocks, which have lagged wider markets over the past two years. The MSCI World Quality index is around 2% ahead of the wider MSCI World index over the quarter[3].
The chart below shows returns on a £1,000 investment in the MSCI World Index vs the MSCI World Quality Index.
At the end of the month, markets were in flux. In particular, there remained a significant question over whether the weakness in technology was a pull back in a longer bull market
, or the start of something more serious.The brutal rout in technology stocks, led initially by software companies before also enveloping some semiconductor and mega-tech names, marked a clear escalation in investors’ fears, compounded by worries over the strength of the US recovery following weak jobs data.
“Over the course of a few days, hundreds of billions of dollars had been wiped off the value of technology stocks, with software-as-a-service (SaaS) being hit especially hard, giving rise to the moniker “SaaSpocalypse.”
“Equity markets have sold off several times before on AI-related anxiety, but this differed in breadth and ferocity, marking one of the strongest negative market reactions to the AI transformation story.”
Monthly sector performance vs MSCI World, November - January 2026
Hover on the bars below to zoom in on performance
3 and 5 year sector performance vs MSCI World
Performance is calculated at the end of the month. Data provided by FE FundInfo, correct as at 31st January 2026.
Highest Returning Investments: Three-Month Performance Rankings
Key observations
Top performing investments by sector
Category | Top performer | November to January | 3 year performance | 5 year performance | OCF |
Materials | Aberdeen Abrdn Future Raw Materials UCITS ETF USD in GB | 32.5% | N/A | N/A | 0.45% |
Energy | Alkemy Capital Investments Plc Ord Gbp0.02 in GB | 39.0% | 67.4% | N/A | N/A |
Healthcare | Seneca Partners Limited Seneca Growth Capital VCT PLC Ord 1P TR in GB | 40.0% | -17.2% | 28.3% | 0.08% |
Consumer staples | Xtrackers MSCI USA Consumer Staples UCITS ETF 1D USD TR in GB | 5.6% | 15.9% | 57.1% | 0.12% |
Industrials | VanEck Space Innovators UCITS ETF A Acc USD in GB | 24.3% | 211.7% | N/A | 0.55% |
Financials | iShares STOXX Europe 600 Banks UCITS ETF (DE) TR in GB | 17.5% | 170.5% | 345.8% | 0.46% |
FundInfo, correct as at 31st January 2026.
Sector Performance November 2025 - January 2026
🧱Materials Sector Performance: Strategic Metals Surge Over Three Months
Investment | Cumulative 3 month performance | 3 year cumulative performance | 5 year cumulative performance | OCF |
Aberdeen Abrdn Future Raw Materials UCITS ETF USD in GB | 32.5% | N/A | N/A | 0.45% |
iShares Copper Miners UCITS ETF in GB | 32.0% | N/A | N/A | 0.55% |
VanEck S&P Global Mining UCITS ETF A USD in GB | 28.6% | 71.1% | 140.7% | 0.50% |
Mirae Asset Global X Disruptive Materials UCITS ETF Acc USD in GB | 28.1% | 35.9% | N/A | 0.50% |
VanEck Rare Earth and Strategic Metals UCITS ETF A Acc USD in GB | 21.0% | -14.7% | N/A | 0.59% |
Amundi S&P World Materials Screened UCITS ETF A Acc in GB | 12.9% | 21.9% | N/A | 0.18% |
SSGA SPDR MSCI World Materials UCITS ETF in GB | 12.8% | 20.5% | 56.0% | 0.30% |
Xtrackers MSCI World Materials UCITS ETF 1C USD in GB | 12.8% | 20.5% | 56.3% | 0.25% |
Invesco Materials S&P US Select Sector UCITS ETF in GB | 10.9% | 10.2% | 51.9% | 0.14% |
iShares Global Timber & Forestry UCITS ETF CHF TR in GB | 4.2% | -9.8% | 1.7% | 0.65% |
Data provided by FE FundInfo, correct as at 31st January 2026.
The strongest performance over the quarter was from funds and ETFs linked to ‘strategic metals’. For example, the iShares Copper Miners ETF rose 32%. The copper price has soared since mid-2025 in response to supply disruptions and stockpiling ahead of a threatened import tax. It is also seen as strategically important to the development of data centres, which use copper in cooling and power distribution.
The Aberdeen Future Raw Materials fund was the strongest performer, up 32.5% over the quarter. It is focused on five key materials linked to the clean energy transition – lithium, copper, rare earths, nickel, and aluminium. It has its highest weighting in China, which has managed to build a stranglehold on certain key minerals to support its technological progress. The Mirae Asset Global X Disruptive Materials and VanEck Rare Earth and Strategic Metals ETFs also focus on these areas.
Generalist mining and materials funds were also strong, but not to the same extent. The Xtrackers MSCI World Materials ETF, for example, rose 12.8% over the quarter, while the Invesco Materials S&P US Select Sector UCITS ETF rose 10.9%. These ETFs have their largest holdings in diversified mining groups such as Rio Tinto, BHP, or Glencore.
⚡Energy Sector Returns: Uranium and Oil Rally November-January
Investment | Cumulative 3 month performance | 3 year cumulative performance | 5 year cumulative performance | OCF |
Alkemy Capital Investments Plc Ord Gbp0.02 in GB | 39.0% | 67.4% | N/A | N/A |
New City Investment Managers Geiger Counter Ord in GB | 31.7% | 73.3% | 215.2% | 3.00% |
WisdomTree Strategic Metals and Rare Earths Miners UCITS ETF Acc USD in GB | 28.4% | N/A | N/A | 0.50% |
Kistos PLC Kistos Holdings PLC Ord GBP0.10 in GB | 24.0% | -37.6% | 56.7% | N/A |
WisdomTree Energy Transition Metals in GB | 17.3% | 9.9% | N/A | 0.81% |
Mirae Asset Global X Wind Energy A Acc USD in GB | 13.5% | -18.0% | N/A | 0.50% |
Amundi S&P World Energy Screened UCITS ETF A Acc in GB | 12.4% | 14.6% | N/A | 0.18% |
iShares S&P 500 Energy Sector UCITS ETF CHF in GB | 12.4% | 11.1% | 210.9% | 0.15% |
iShares S&P 500 Energy Sector UCITS ETF CHF in GB | 12.4% | 11.1% | 210.9% | 0.15% |
SSGA SPDR S&P U.S. Energy Select Sector UCITS ETF in GB | 12.3% | 12.2% | 209.8% | 0.15% |
Data provided by FE FundInfo, correct as at 31st January 2026.
The stand-out performers in the sector all had exposure to strategic metals, even though they were classified in the energy sector. The top performer was Alkemy Capital Investments, which invests in “critical minerals supply chain for the biggest energy transformation in history”. The New City Investment Managers Geiger Counter trust invests in uranium exploration and production stocks. It is up 31.7% over the quarter. It extends an exceptionally strong run for the Investment Trust that has seen it rise 215% over five years.
It was a rare, strong quarter for the wind sector. The wind sector has struggled in recent years as higher inflation lifted build costs and the US administration backed away from further investment in the sector. This has weighed on share prices. However, this may have started to turn, with the Mirae Asset Global X Wind Energy fund up 13.5% over the quarter. It is still down 18% over three years.
The generalist energy ETFs had a good quarter. The Amundi S&P World Energy Screened ETF rose 12.4% over the period, in line with the iShares S&P 500 Energy Sector ETF. These tend to have their largest exposure in the oil giants, such as Chevron and Exxon Mobil.
⚕️Healthcare Sector Three-Month Performance: Recovery Gains Momentum
Investment | Cumulative 3 month performance | 3 year cumulative performance | 5 year cumulative performance | OCF |
Seneca Partners Limited Seneca Growth Capital VCT PLC Ord 1P TR in GB | 40.0% | -17.2% | 28.3% | 0.08% |
Intuitive Investments Group PLC Intuitive Investments Group PLC ORD GBP0.1 TR in GB | 25.3% | 87.4% | -43.2% | 0.22% |
Bellevue Healthcare Trust Plc Red Ord 1P TR in GB | 9.8% | -2.6% | -4.8% | 1.03% |
Xtrackers MSCI Europe Health Care Screened UCITS ETF 1C EUR in GB | 9.3% | 22.3% | 43.6% | 0.17% |
iShares MSCI Europe Health Care Sector UCITS ETF EUR Acc in GB | 9.1% | 23.4% | 46.6% | 0.18% |
SSGA SPDR MSCI Europe Health Care UCITS ETF in GB | 9.1% | 23.4% | 23.4% | 0.18% |
Optima Health Optima Health PLC in GB | 9.1% | N/A | N/A | N/A |
Amundi STOXX Europe 600 Healthcare EUR in GBMSCI World Materials UCITS ETF 1C USD in GB | 8.2% | 21.5% | 42.2% | 0.30% |
Polar Capital Partners Ltd Polar Capital Global Healthcare Trust PLC Ordinary Share Class Ord 25P TR in GB | 7.5% | 30.5% | 72.6% | 0.90% |
HBM Healthcare Investments HBM Healthcare Investments AG Dis CHF in GB | 7.1% | N/A | N/A | N/A |
Data provided by FE FundInfo, correct as at 31st January 2026.
Funds that invest in earlier stage companies have benefited most from the revival in the technology sector. Seneca Partners Limited, Seneca Growth Capital VCT, was the top performer over the quarter, rising 40%. It markets a significant turnaround, with the VCT still 17.2% down over three years. The Intuitive Investments Group PLC rose 25.3% over the quarter, but is down 43.2% over five years.
The Seneca Partners fund holds an eclectic mix of early stage businesses, including vaccine developer ImmBio, dermatology group Insense and medical device company OR Productivity.
Elsewhere, fund performance was more pedestrian. The Bellevue Healthcare Trust was the strongest of the more generalist trusts, rising 9.8% over the quarter. However, it is still in negative territory over three years. Europe was stronger than the US over the quarter, with the MSCI Europe Health Care sector around 2% higher than the more US-heavy MSCI World Health Care index.
The chart below shows returns on a £1,000 investment.
There are three ETFs based on the MSCI Europe Health Care sector – from Xtrackers, iShares and SSGA – which all delivered between 9.1% and 9.3%. Their largest holdings include Roche, AstraZeneca, Novartis and Novo Nordisk. These funds have seen stronger long-term performance, up over 20% over three years. The Polar Capital Global Healthcare trust has the strongest five year track record, having risen 72.6%. It also had a good quarter, rising 7.5%.
🛍️ Consumer Staples Performance: Quality Stocks Rebound Over Three Months
Investment | Cumulative 3 month performance | 3 year cumulative performance | 5 year cumulative performance | OCF |
Xtrackers MSCI USA Consumer Staples UCITS ETF 1D USD TR in GB | 5.6% | 15.9% | 57.1% | 0.12% |
SSGA SPDR S&P U.S. Consumer Staples Select Sector UCITS ETF in GB | 5.5% | 11.5% | 49.2% | 0.15% |
Invesco Consumer Staples S&P US Select Sector UCITS ETF in GB | 5.4% | 15.1% | 56.6% | 0.14% |
iShares S&P 500 Consumer Staples UCITS ETF GBP in GB | 5.4% | 15.1% | 56.6% | 0.15% |
IQ EQ Fund Management Rize Sustainable Future of Food UCITS ETF Acc USD in GB | 4.9% | -22.1% | -30.9% | 0.45% |
SSGA SPDR MSCI World Consumer Staples UCITS ETF in GB | 3.6% | 10.0% | 37.3% | 0.30% |
Xtrackers MSCI World Consumer Staples UCITS ETF 1C USD in GB | 3.6% | 10.1% | 37.7% | 0.25% |
Xtrackers MSCI Europe Consumer Staples Screened UCITS ETF 1C EUR in GB | 2.6% | -8.9% | 3.6% | 0.17% |
Amundi S&P World Consumer Staples Screened UCITS ETF A Acc in GB | 2.2% | 2.5% | N/A | 0.18% |
SSGA SPDR MSCI Europe Consumer Staples UCITS ETF in GB | 0.6% | 2.3% | 18.1% | 0.18% |
Data provided by FE FundInfo, correct as at 31st January 2026.
Khaled Louhichi, head of research at Mirabaud Wealth Management, says spending is moderating rather than contracting:
Discretionary categories are softening, while essentials and services remain resilient. This reflects behavioural caution in a higher-rate environment and the gradual exhaustion of excess savings, rather than forced retrenchment. Households are choosing where to spend, not being compelled to stop.
Pressure is visible, but it is concentrated. Lower-income cohorts are more exposed, while middle- and higher-income consumers remain resilient, supported by employment and still-healthy balance sheets.” This is a “clearly K-shaped consumer dynamic.
Consumer staples outpaced consumer discretionary stocks by 8.6% over the quarter. The sector has been relatively weak over the past three years, with the average fund up around 15% and share prices had started to look cheap relative to history. Their strong run over the past quarter saw Walmart – the largest weighting in many consumer staples indices – become a $1 trillion company.
Most of the top performing funds were the US-focused consumer staples funds, including the Xtrackers MSCI USA Consumer Staples UCITS ETF, the Invesco Consumer Staples S&P US Select Sector UCITS ETF and the SSGA SPDR S&P U.S. Consumer Staples Select Sector UCITS ETF. These delivered a quarterly return of 5.4%-5.6%. European consumer stocks were weaker, with the Xtrackers MSCI Europe Consumer Staples Screened UCITS ETF up just 2.6%.
🏭 Industrials Three-Month Performance: Defence and Space Lead Gains
Investment | Cumulative 3 month performance | 3 year cumulative performance | 5 year cumulative performance | OCF |
VanEck Space Innovators UCITS ETF A Acc USD in GB | 24.3% | 211.7% | N/A | 0.55% |
Invesco Defence Innovation UCITS ETF Acc USD in GB | 11.3% | N/A | N/A | 0.35% |
iShares S&P 500 Materials Sector UCITS ETF CHF in GB | 10.7% | 10.1% | 52.2% | 0.15% |
iShares S&P 500 Materials Sector UCITS ETF USD in GB | 10.7% | 10.1% | 52.2% | 0.15% |
Yes Global X Europe Focused Defence Tech UCITS ETF Acc EUR in GB | 8.6% | N/A | N/A | 0.40% |
HAN Future of European Defence Screened UCITS ETF NON-ETF Acc EUR in GB | 7.7% | N/A | N/A | 0.39% |
iShares Europe Defence UCITS ETF Acc EUR in GB | 7.3% | N/A | N/A | 0.35% |
First Trust First Trust Indxx Global Aerospace & Defence UCITS ETF A Acc USD in GB | 7.3% | N/A | N/A | 0.65% |
Van Eck Defense UCITS ETF A Acc USD in GB | 7.3% | N/A | N/A | 0.55% |
Mirae Asset Global X Defence Tech UCITS ETF ACC USD in GB | 6.8% | N/A | N/A | 0.50% |
Data provided by FE FundInfo, correct as at 31st January 2026.
The top performer was VanEck Space Innovators UCITS ETF, which rose 24.3% over the period. It has been a strong long-term performer, up 211.7% over three years. Space innovation is accelerating as the cost of launching satellites comes down dramatically. The ETF holds companies such as Planet Labs, which has the highest frequency of satellite imagery data available commercially.
Many of the other top performers were defence-focused ETFs. The Invesco Defence Innovation UCITS ETF also holds Planet Labs, alongside more conventional defence names such as Boeing or SAAB. Yes, Global X Europe Focused Defence Tech UCITS ETF, Van Eck Defense UCITS ET, and the iShares Europe Defence UCITS ETF also performed well, rising 7.3%-8.6% over the period. These are more generalist Trusts and hold companies such as BAE Systems, Rolls-Royce, and Babcock International.
The rally in defence stocks has been significant over the past year, and some active fund managers have suggested that it might look a little long in the tooth. However, with good news still filtering through on company spending, the rally is being sustained.
🏦Financial Sector Performance: European Banks Extend Three-Year Rally
Investment | Cumulative 3 month performance | 3 year cumulative performance | 5 year cumulative performance | OCF |
iShares STOXX Europe 600 Banks UCITS ETF (DE) TR in GB | 17.5% | 170.5% | 345.8% | 0.46% |
Amundi STOXX Europe 600 Banks EUR in GB | 17.5% | 169.3% | 342.1% | 0.30% |
Invesco STOXX Europe 600 Optimised Banks UCITS ETF in GB | 17.4% | 171.2% | 342.9% | 0.20% |
Amundi Euro Stoxx Banks Acc in GB | 17.4% | 189.0% | 396.2% | 0.30% |
iShares EURO STOXX Banks 30-15 UCITS ETF (DE) TR in GB | 17.3% | 186.5% | 390.0% | 0.51% |
Invesco EURO STOXX Optimised Banks UCITS ETF in GB | 16.8% | 177.7% | 375.6% | 0.30% |
Jupiter Financial Opportunities I Acc TR in GB | 10.8% | 81.9% | 66.9% | 0.99% |
Jupiter Financial Opportunities L Inc TR in GB | 10.6% | 77.8% | 60.7% | 1.74% |
State Street SPDR S&P Regional Banking ETF TR in GB | 10.6% | 8.8% | 45.1% | 0.35% |
iShares MSCI Europe Financials Sector UCITS ETF EUR Acc in GB | 10.1% | 104.2% | 191.4% | 0.18% |
Data provided by FE FundInfo, correct as at 31st January 2026.
The top performers in the sector were the European banks, with the top two performers both ETFs based on the STOXX Europe 600 Banks index. The iShares and Amundi ETFs delivered 17.5% over the quarter, having risen around 170% over the past three years.
European banks are estimated to have delivered strong earnings growth of 11.2% in 2024, with further growth of 9.6% and 7.2% we expect to see in 2025 and 2026, respectively. This resilience demonstrates the effective management of deposit franchises by banks, which helped them maintain strong interest margins. Modest lending volume growth also provided support. Crucially, banks successfully grew their fee and commission income from their payments, cards, asset management, and wholesale banking businesses.
The sustained profitability has been an important driver of the sector’s performance, supporting higher dividends, increased share buybacks and a valuation re-rating for European banks.
It is also hoped that the banking sector will be a beneficiary of any economic improvement as a result of European fiscal spending plans.
The only active fund in the mix was the Jupiter Financial Opportunities fund. The fund has also been heavily invested in European banks, with Societe Generale, Barclays, Santander, and Unicredit among its largest holdings.
📝 What this means for investors
1) Recent momentum vs long-term trends
In reality, the weakness in the technology sector has been evident for some time. Only two of the ‘Magnificent Seven’ stocks beat the wider S&P 500 last year (Nvidia and Alphabet). Nvidia’s share price had remained largely unchanged since October. The latest quarterly earnings data gave investors even more cause for concern, as spending vastly outpaced expectations.
2) Sector rotation patterns
The question for investors is who wins from weakness in the technology sector. The technology sector is now so vast that its weakness potentially puts a lot of capital in search of a new home. The early winners have been previously unloved areas such as consumer staples and healthcare. These tend to house higher quality companies that are often more defensive at times of economic turbulence.
3)Seasonal vs Structural Performance Drivers
Investors may also start to hunt for alternative sources of growth. Smaller companies have been a notable beneficiary of technology weakness for the year to date. They may also benefit from greater fiscal spending, including the tax cuts in the One Big Beautiful Bill due later this year. It is also possible that investors start to turn to emerging markets, which have seen a strong run since the start of the year.
4) Risk-on vs risk-off sentiment
Markets have been leaning towards a more defensive tilt over the past quarter. Areas such as gold and silver have been extremely strong, benefiting from their ‘safe haven’ status. This started to unwind a little with the appointment of Kevin Walsh as Federal Reserve Chair, who is seen as a safe pair of hands, but precious metals continue to gain on every bout of geopolitical volatility. Investors have also shown a preference for more stable sectors, such as consumer staples and healthcare. This suggests some nervousness about economic growth in the months ahead.
🔮 Investment Outlook 2026: Sectors and Themes to Watch
Based on this quarter's performance trends and current market positioning, investors might consider:
Reviewing exposure to the US and the technology sector in particular. Indices remain highly concentrated in these two areas and there are growing investor nerves over spending.
Re-examining ‘quality’ sectors such as healthcare and consumer staples. Some of the headwinds for both sectors have dissipated and a recovery now appears to be underway.
Reviewing their weighting of small cap versus large cap. Large cap companies have done well across the globe, with small companies left behind, but there are signs this might change in the months ahead.
Maintain sufficient inflation protection in their portfolios. Although inflation data has been relatively benign, there is still a risk that tariffs start to be felt in consumer prices.
Re-examine gold and precious metals. Prices have started to demonstrate some irrational exuberance. While they have a place in a portfolio as a hedge against Dollar weakness, they may provide less protection if prices are too high.
📆 Market Events to Watch 2026: Rates, Dollar Weakness, and Commodities
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[2] Marketwatch
