Top Performing Investments February 2026 - April 2026: Three-Month Analysis
Written by Boring Money
15 May, 2026
It was a three-month period defined by war and artificial intelligence. The US/Israeli attacks on Iran sent energy prices soaring and rattled financial markets, but by April, a strong earnings season had revived confidence, with AI infrastructure companies leading the recovery. Energy funds were the clear winners over the three months, delivering more than double the returns of any other sector. Semiconductors surged in April. Lithium had a stellar run. Here's a breakdown of what performed best, and why.
What Happened in Markets February - April: Key Investment Trends
It was a tumultuous 3 months for global stock markets, which were buffeted by the US/Israeli attacks on Iran on one hand, and the mounting AI revolution on the other. Stock markets ended the three-month period higher, but not without considerable volatility
in between.February was dominated by the Iranian crisis. The subsequent closure of the Strait of Hormuz cut off around 20% of the world’s global oil and gas shipments, sending energy costs soaring. The price of Brent Crude Oil climbed from $60 a barrel to over $100. Various attempts to reopen the Strait or negotiate a peace deal proved ineffective and short-lived.
Financial markets had to pivot from expecting interest rate cuts to contemplating interest rate rises. Yields
rose in the bond market, particularly in countries seen as vulnerable to rising oil prices, such as the UK. The UK gilt market moved from anticipating interest rate cuts to forecasting three or more rate rises for the year ahead. This remains unlikely, but it was a measure of market fears of inflation.Nevertheless, all the major central banks kept rates on hold in their April meetings, saying that it was simply too early to judge the impact of the US, Israel, and Iran war. The key will be whether the impact of higher energy costs spills over into other consumer prices. There are worries over fertiliser prices, for example, and the knock-on effects on food inflation.
Unsurprisingly, against this backdrop, the top-performing sector was energy. The major energy groups saw a near-instant boost to their bottom line. Even renewable energy groups, which had been out of favour with investors for some time, saw a bounce. The sector delivered more than double the returns of any other sector, though most of the gains came in February, and its strength had tailed off by the end of April.
The bounce in energy prices also supported the utility sector. Utility companies are vital cogs in the energy transition, enabling grid upgrades and implementing battery storage. With a second energy crisis in four years, global governments may move faster on electrification, and investors are reasoning that the utility companies will benefit.
The technology sector was lacklustre for the early part of the period. The ‘SAAS-pocalyse’ saw a lot of software companies sell off as fears grew over the impact of AI on their business models. Even behemoths such as Microsoft were not immune. The S&P Software & Services Select Industry Index fell more than 25% from mid-January to mid-February.
While software companies remained weak throughout the three-month period, April saw a significant revival in the AI trade. Strong results from some AI infrastructure companies and continued investment in AI capabilities sent share prices soaring, particularly for the semiconductor sector. Companies such as Nvidia, Micron and TSMC reported strong results. There remain question marks over whether the companies making significant capital investments – the so-called ‘hyperscalers’ – will reap the benefits in their bottom line, but investors were happy to give them the benefit of the doubt.
By the end of April, markets had reverted to a familiar pattern, with a handful of select technology companies leading the way and investors showing little interest in anything else.
As earnings season draws to a close, one theme stands out clearly: market leadership remains narrow. A relatively small group of companies has once again driven a significant share of overall returns, with the largest names accounting for an outsized portion of recent S&P 500 performance.
History suggests that periods of narrow leadership are not unusual, but they rarely persist indefinitely. As expectations rise and capital is deployed, market performance typically broadens, with a wider range of companies contributing to returns. The key question for investors is not whether today’s leaders remain important, but how quickly that broadening takes hold.
Monthly sector performance vs MSCI World, February - April 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 30th April 2026.
Which investments performed best between February and April 2026?
Key observations
Top performing investments by sector
Category | Top performer | February to April Performance | 3 year performance | 5 year performance | OCF |
Energy | WisdomTree Gasoline Unhedged in GB | 71.4% | 90.0% | 271.0% | 0.99% |
Information Technology | Mirae Asset Global X AI Semiconductor & Quantum UCITS ETF Acc USD in GB | 30.5% | N/A | N/A | 0.45% |
Industrials | VanEck Space Innovators UCITS ETF A Acc USD in GB | 18.0% | 299.2% | N/A | 0.55% |
Utilities | Invesco Utilities S&P US Select UCITS ETF in GB | 10.0% | 35.6% | 62.1% | 0.14% |
Telecommunications | Xtrackers MSCI Europe Communication Services Screened UCITS ETF 1C EUR in GB | 3.7% | 19.3% | 32.6% | 0.17% |
Materials | BlackRock Lithium & Battery Producers UCITS ETF Acc USD in GB | 36.7% | N/A | N/A | 0.55% |
FundInfo, correct as at 30th April 2026.
Sector Performance February 2026 - April 2026
⚡Energy Sector Performance February–April 2026: Which Funds Returned the Most?
Investment | Cumulative 3 month performance | 3 year cumulative performance | 5 year cumulative performance | OCF |
WisdomTree Gasoline Unhedged in GB | 71.4% | 90.0% | 271.0% | 0.99% |
Mirae Asset Global X Hydrogen A Acc USD in GB | 61.9% | 35.4% | N/A | 0.50% |
WisdomTree Energy Enhanced in GB | 49.5% | 39.2% | 120.4% | 0.80% |
WisdomTree Energy Unhedged in GB | 44.1% | 41.3% | 107.6% | 0.99% |
iShares MSCI Europe Energy Sector UCITS ETF EUR Acc in GB | 29.0% | 56.9% | 169.7% | 0.18% |
SSGA State Street SPDR MSCI Europe Energy UCITS ETF in GB | 28.5% | 55.7% | 172.2% | 0.18% |
L&G UCITS ETF Plc Hydrogen Economy UCITS ETF Acc USD in GB | 26.5% | 65.1% | 1.4% | 0.49% |
iShares Oil & Gas Exploration & Production UCITS ETF USD in GB | 24.6% | 39.7% | 1161.1% | 0.55% |
Mirae Asset Global X Lithium & Battery Tech UCITS ETF A Acc USD in GB | 23.9% | 37.7% | N/A | 0.60% |
WS Guinness Global Energy I Acc in GB | 23.8% | 54.3% | 162.0% | 0.77% |
Data provided by FE FundInfo, correct as at 30th April 2026.
The energy sector delivered more than double the return of any other sector, at 20.2%, with most of the gains coming in February and March. It benefited from spiking fossil fuel costs as the war in Iran cut off crucial energy supplies through the Strait of Hormuz.
The strongest performance came from funds focused directly on energy prices. For example, WisdomTree Energy funds comprised three of the top 10 performing funds. They offer diversified exposure to futures contracts based on oil, gas, diesel and gasoline. They rose 40-50% over the three-month period, varying by currency and futures type.
It was also a good three months for hydrogen energy producers. Investors are working on the assumption that a second energy crisis in four years may push governments towards alternative fuel sources. Companies involved in hydrogen and fuel cells saw real momentum, with the Mirae Asset Global X Hydrogen fund rising 61.9% over the three months.
Funds based on energy companies also performed well. The iShares MSCI Europe Energy Sector UCITS ETF and SSGA State Street SPDR MSCI Europe Energy UCITS ETF delivered 29% and 28.5%, respectively. These ETFs have their highest exposure to BP and Shell. Both companies reported strong results over the period, which boosted their share prices.
⚒️Utilities Sector Performance February–April 2026: Steady Gains as Energy Crisis Bites
Investment | Cumulative 3 month performance | 3 year cumulative performance | 5 year cumulative performance | OCF |
Invesco Utilities S&P US Select UCITS ETF in GB | 10.0% | 35.6% | 62.1% | 0.14% |
SSGA State Street SPDR S&P U.S. Utilities Select Sector UCITS ETF in GB | 10.0% | 35.5% | 62.1% | 0.15% |
iShares S&P 500 Utilities Sector UCITS ETF USD in GB | 10.0% | 35.5% | 62.2% | 0.15% |
Amundi S&P World Utilities Screened UCITS ETF A Acc in GB | 9.9% | 41.0% | N/A | 0.18% |
Xtrackers MSCI World Utilities UCITS ETF 1C USD in GB | 9.4% | 43.1% | 65.7% | 0.25% |
SSGA State Street SPDR MSCI Europe Utilities UCITS ETF in GB | 9.4% | 59.9% | 82.0% | 0.18% |
SSGA State Street SPDR MSCI World Utilities UCITS ETF in GB | 9.4% | 42.9% | 65.4% | 0.30% |
Xtrackers MSCI Europe Utilities Screened UCITS ETF 1C EUR in GB | 8.8% | 58.2% | 76.2% | 0.17% |
Data provided by FE FundInfo, correct as at 30th April 2026.
Utilities is usually seen as a steady sector, useful as the backbone of a portfolio when risk appetite is low. Companies generally have predictable revenues and cashflows. However, the nature of the sector is changing as AI and decarbonisation boost electricity demand. Many utility companies are undertaking significant capital spending programmes.
The top performing funds were US-based funds, with the Invesco Utilities S&P US Select UCITS ETF delivering a 10% return over the three-month period, along with the SSGA State Street SPDR S&P U.S. Utilities Select Sector and iShares S&P 500 Utilities Sector ETFs based on the same index. Among the top holdings are Nextera Energy, Duke Energy and Constellation Energy Group.
Global and European utilities funds were marginally weaker. The SSGA State Street SPDR MSCI Europe Utilities UCITS ETF rose 9.4% over the three months, but has been a stronger performer over three and five years. European governments have shown more consistent commitment to the energy transition, and announced another package of measures in response to the recent energy crisis.
🧑💻Technology Sector Performance February–April 2026: Semiconductors Lead the AI Revival
Investment | Cumulative 3 month performance | 3 year cumulative performance | 5 year cumulative performance | OCF |
Mirae Asset Global X AI Semiconductor & Quantum UCITS ETF Acc USD in GB | 30.5% | N/A | N/A | N/A |
iShares MSCI Global Semiconductors UCITS ETF in GB | 28.8% | 239.5% | N/A | 0.35% |
VanEck Semiconductor UCITS ETF A USD in GB | 27.9% | 255.4% | 297.5% | 0.35% |
iShares AI Innovation Active UCITS ETF Acc USD in GB | 25.5% | N/A | N/A | 0.73% |
First Trust First Trust Bloomberg Global Semiconductor Supply Chain UCITS ETF A Acc USD in GB | 22.1% | N/A | N/A | 0.60% |
Amundi MSCI Semiconductors Acc in GB | 21.5% | 318.0% | 270.5% | 0.35% |
Mirae Asset Global X Internet Of Things UCITS ETF A Acc USD in GB | 18.8% | 36.5% | N/A | 0.60% |
WisdomTree Quantum Computing UCITS ETF Acc USD in GB | 18.2% | N/A | N/A | 0.50% |
iShares AI Infrastructure UCITS ETF Acc USD in GB | 17.6% | N/A | N/A | 0.35% |
iShares Quantum Computing UCITS ETF Acc USD in GB | 14.5% | N/A | N/A | 0.50% |
Data provided by FE FundInfo, correct as at 30th April 2026.
In the first few months of 2026, the technology sector struggled. There were concerns over bubble-level valuations, who might be the real winners and losers from AI, and mounting macroeconomic risks. However, in April, strong earnings from many technology companies gave shares a significant boost. It appeared that the potential gains from AI were becoming a reality.
The top performing funds were all focused on the semiconductor sector. Semiconductor companies have been the primary beneficiaries of the $700bn AI spending spree from the megacap companies. This has boosted companies such as Nvidia, Micron and TSMC. The Mirae Asset Global X AI Semiconductor & Quantum UCITS ETF was the top performer in the sector over the month, rising 30.5%, but other semiconductor-focused funds also did well, including iShares MSCI Global Semiconductors UCITS ETF and VanEck Semiconductor UCITS ETF.
The other top-performers were a mixed bag, but with a common link to AI. The iShares AI Innovation Active UCITS ETF rose 25.5% over the three months.
🌐 Telecommunications Sector Performance February–April 2026: Which Funds Came Out on Top?
Investment | Cumulative 3 month performance | 3 year cumulative performance | 5 year cumulative performance | OCF |
Xtrackers MSCI Europe Communication Services Screened UCITS ETF 1C EUR in GB | 3.7% | 19.3% | 32.6% | 0.17% |
Xtrackers MSCI USA Communication Services UCITS ETF 1D USD TR in GB | 3.7% | 106.4% | 71.7% | 0.15% |
SSGA State Street SPDR MSCI World Communication Services UCITS ETF in GB | 3.3% | 104.1% | 72.9% | 0.30% |
Invesco Communications S&P US Select Sector UCITS ETF USD in GB | 2.0% | 88.2% | 57.7% | 0.14% |
Data provided by FE FundInfo, correct as at 30th April 2026.
Telecoms and communications companies saw a boost from the war in Iran, with digital networks an increasingly important part of warfare. The Xtrackers MSCI Europe Communication Services Screened UCITS ETF saw a rise of 3.7% over the three months. Its top holdings include names such as Swiss telcos giant Swisscom and Spanish wireless telcos group Cellnex.
Over the longer-term, US communications groups have been stronger performers. The Xtrackers MSCI USA Communication Services UCITS ETF also rose 3.7% over the three months, but its three year performance is far higher, at 106.4% (versus 19.3% for the European ETF). The largest holdings in the USA ETF are familiar names such as Alphabet, Meta, Netflix and Verizon, so it has benefited from the AI trade as well.
The SSGA State Street SPDR MSCI World Communication Services UCITS ETF and Invesco Communications S&P US Select Sector UCITS ETF USD were also strong performers over the three months and over the longer-term. Both ETFs have significant exposure to the US mega cap technology groups, which has helped boost performance.
🏭Industrials Sector Performance February–April 2026: Space and Defence Drive Returns
Investment | Cumulative 3 month performance | 3 year cumulative performance | 5 year cumulative performance | OCF |
VanEck Space Innovators UCITS ETF A Acc USD in GB | 18.0% | 299.2% | N/A | 0.55% |
Deutsche MSCI USA Industrials Index UCITS ETF 1D TR in GB | 7.6% | 70.3% | 87.3% | 0.12% |
iShares S&P 500 MaSSGA State Street SPDR S&P U.S. Industrials Select Sector UCITS ETF in GBterials Sector UCITS ETF CHF in GB | 6.8% | 67.3% | 85.6% | 0.15% |
iShares S&P 500 Industrials Sector UCITS ETF USD in GB | 6.8% | 67.4% | 85.6% | 0.15% |
Invesco Industrials S&P US Select Scope UCITS ETF in GB | 6.8% | 67.4% | 85.6% | 0.14% |
Xtrackers MSCI World Industrials UCITS ETF 1C USD in GB | 5.5% | 67.1% | 81.2% | 0.25% |
SSGA State Street SPDR MSCI World Industrials UCITS ETF in GB | 5.5% | 66.9% | 80.8% | 0.30% |
iShares S&P 500 Materials Sector UCITS ETF USD in GB | 4.6% | 23.1% | 36.2% | 0.15% |
Invesco Defence Innovation UCITS ETF Acc USD in GB | 4.1% | N/A | N/A | 0.35% |
Xtrackers MSCI Europe Industrials Screened UCITS ETF 1C EUR in GB | 3.1% | 47.8% | 57.0% | 0.17% |
Data provided by FE FundInfo, correct as at 30th April 2026.
The top performer over the three months was the VanEck Space Innovators UCITS ETF, which rose 18%. It has delivered an astonishing 299.2% return over the past three years, as investors have warmed to the potential of satellite technology. The Trust offers diversified exposure to satellite equipment, communication solutions, exploration, and space travel and tourism. Top holdings include satellite imagery group Planet Labs and satellite internet group Viasat.
The Invesco Defence Innovation UCITS ETF (DFNX) was another strong performer, up 4.1% over the last three months. It tracks the S&P Kensho Global Future Defense Index, which focuses on global companies developing sophisticated weapons, defensive systems and border security solutions. Its 61 holdings span areas including military cybersecurity, space systems, robotics, and unmanned air and sea drones, the cutting-edge technologies reshaping how governments protect borders and critical infrastructure. Top holdings include AeroVironment, a leading maker of tactical drone systems, and Red Cat Holdings, which specialises in small unmanned aircraft for defence applications.
However, the majority of the top performers were general industrial ETFs, including the iShares S&P 500 Industrials Sector UCITS ETF and Deutsche MSCI USA Industrials Index UCITS ETF. These ETFs have large weightings in US construction group Caterpillar, which has performed very well for the year to date on the back of increased global infrastructure spending.
🧱Materials Sector Performance February–April 2026: Lithium and Rare Earths Surge
Investment | Cumulative 3 month performance | 3 year cumulative performance | 5 year cumulative performance | OCF |
BlackRock Lithium & Battery Producers UCITS ETF Acc USD in GB | 36.7% | N/A | N/A | 0.55% |
VanEck Rare Earth and Strategic Metals UCITS ETF A Acc USD in GB | 19.7% | 24.1% | N/A | 0.59% |
Invesco Materials S&P US Select Sector UCITS ETF in GB | 4.6% | 23.3% | 36.3% | 0.14% |
SSGA State Street SPDR S&P U.S. Materials Select Sector UCITS ETF in GB | 4.6% | 23.3% | 36.6% | 0.15% |
Aberdeen Abrdn Future Raw Materials UCITS ETF USD in GB | 4.6% | N/A | N/A | 0.45% |
Xtrackers MSCI World Materials UCITS ETF 1C USD in GB | 4.2% | 34.2% | 45.5% | 0.25% |
SSGA State Street SPDR MSCI World Materials UCITS ETF in GB | 4.1% | 34.1% | 45.1% | 0.30% |
Mirae Asset Global X Disruptive Materials UCITS ETF Acc USD in GB | -0.5% | 62.0% | N/A | 0.50% |
VanEck S&P Global Mining UCITS ETF A USD in GB | -1.4% | 86.7% | 110.6% | 0.50% |
iShares Copper Miners UCITS ETF in GB | -2.6% | N/A | N/A | 0.55% |
Data provided by FE FundInfo, correct as at 30th April 2026.
The BlackRock Lithium & Battery Producers UCITS ETF and VanEck Rare Earth and Strategic Metals UCITS ETF were the stand-out winners over the three months, rising 36.7% and 19.7% respectively. The lithium price is up 69.2% for the year to date[1], as rising demand has met weakening supply. Morningstar reports that no new lithium projects have been launched since 2024, and demand is set to double within three years.
While the specialist funds have topped the performance tables, specialist metals funds and funds that prioritise strategic materials have also done well. The Aberdeen Future Raw Materials UCITS ETF, for example, rose 4.6%. It is exposed to lithium, alongside nickel, copper, rare earth elements and aluminium.
More general trusts, such as the VanEck S&P Global Mining UCITS ETF, had a tougher three months. The VanEck ETF dropped 1.44% over the month, though its long-term performance is still strong, with the ETF up 86.7% over three years and 110.6% over five years.
📝 What this means for investors
It has been a tumultuous three months. However, the most important long-term factor may prove to be the revival in the technology sector, which had been struggling through a fallow patch. Investors were encouraged that AI investment appeared to be translating into real revenues and having a tangible effect on corporate earnings. Nevertheless, the Iran war continues to create a complex backdrop for markets, with its impact on inflation, interest rates and economic growth still unclear.
1) Recent momentum vs long-term trends
The latest quarterly earnings data appeared to support the long-term strength of AI adoption. Capital spending continued, with the US megacaps
forecast to deploy around $700m on AI infrastructure in 2026. However, investors are starting to be more discerning in isolating the winners and losers from AI. The infrastructure companies – semiconductors and the rest of the supply chain – are increasingly seen as the strongest, with software companies the laggards.2) Sector rotation patterns
The recent success of the technology sector disrupts a nascent pattern of diversification
in global stock markets. Investors had been turning to new markets and new sectors in the early part of the year, but market leadership has reverted to a very narrow group of companies. UBS analysis says that S&P 500 performance is currently being driven by the smallest number of stocks on record.3)Seasonal vs Structural Performance Drivers
The fall-out from the Iran crisis has created some short-term winners, particularly in the energy, materials and industrial sectors. Whether this is a short-term boost or a longer-term structural shift for these companies depends on whether the US and Iran can negotiate a peace deal acceptable to both sides in the near-term. This appears increasingly unlikely, even if the US administration is keen for a ‘deal’.
4) Risk-on vs risk-off sentiment
Markets have remained surprisingly immune to the potential fall-out from the Iran crisis. It remains to be seen whether this can persist into the next three months, with the Strait of Hormuz still closed and no resolution in sight. The latest CPI data from the US showed inflationary pressures starting to emerge, which is likely to take interest rate cuts off the table. While the market remains excited by AI, the threat of higher borrowing costs may start to weigh over the next period.
🔮 Investment Outlook 2026: Sectors and Themes to Watch
Based on the above performance trends and current market positioning, investors might consider:
More nuanced exposure to the technology sector. Software has come under attack and there are concerns over whether the megacaps can recoup their AI investments. The AI infrastructure sector – particularly semiconductors – is starting to see far stronger momentum.
Re-examining ‘quality’ sectors such as healthcare and consumer staples. They have continued to be relatively weak over the past three months, but if the global economy starts to weaken, these ‘defensive’ areas may have more appeal for investors.
Consider broader diversification – traditional fixed income options, such as developed market government bonds, have provided little protection for investors in the current environment, particularly in the UK. Investors may need to look to alternative areas to protect portfolios.
Shore up inflation protection in their portfolios – inflationary pressures are re-emerging, just as investors had assumed that they were falling. The next move in interest rates may be higher rather than lower. Investors need to ensure their portfolios are positioned for the new reality of higher inflation and, potentially, higher interest rates.
📆 Key Events to Watch
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[1] Trading Economics, May 2026
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