Investor Insights: Highest-flying ETFs and funds for ISAs in 2026

No surprise to see semiconductors topping the charts this year for ETF performance given the relentless explosion in AI spending. The best performing ISA-eligible ETF in 2026 is the iShares MSCI Global Semiconductors UCITS ETF (SEME), which has risen 103% over the year. Its major holdings reflect where the biggest momentum has been in 2026 with the largest net asset value (NAV) from Micron (~10% of the fund), a stock that has enjoyed a monster +747% rally this year. The other largest holdings are Advanced Micro Devices (AMD), Taiwan Semiconductor Manufacturing (TSMC), Applied Materials, Broadcom, Nvidia and SK Hynix. The HSBC Nasdaq Global Semiconductor UCITS ETF (HNSC) and VanEck Semiconductor UCITS ETF (VVSM) deliver similar exposure to the AI hardware trade and have posted gains in excess of 90% this year. Mixing up semis with another buzzy investor theme – quantum computing stocks – is the Global X AI Semiconductor & Quantum UCITS ETF (C8PX), which is up 90% YTD – though we should note the largest holdings are concentrated in the usual semiconductor stocks.

The Kospi has been this year’s standout at the index level, rallying about 80% YTD despite some incredibly volatile sessions that have seen it tumble 10% at times, so Korea is well represented in the best performing list. The market is really about two blockbuster AI trades – Samsung Electronics and SK Hynix. Posting gains in excess of 90% YTD are the Franklin FTSE Korea UCITS ETF (FLXK), the Xtrackers MSCI Korea UCITS ETF (DBX8), and the Amundi MSCI Korea UCITS ETF (KRW). 

Funds

Major investing themes of the year are reflected in the best-performing investment trusts - specifically AI and space.

Seraphim Space Investment Trust (LSE:SSIT) tops the list with a +60% gain YTD having ridden some of the excitement around the space tech sector with the IPO of SpaceX. It’s not a holder in Elon Musk’s company but had its own IPO buzz with the listing of major holding Hawkeye on NYSE earlier this year. We had a look at SSIT recently and noted that it’s not a conventional aerospace ETF. Seraphim is much closer to a high-risk, venture-style investment vehicle — more akin to backing future category leaders before IPO.

Polar Capital Technology Pls (LSE:PCT) has gained +48% YTD. It offers one of the cleanest exposures to the AI via a UK-listed equity vehicle - the fund is listed on the FTSE 100. It’s done particularly well off the rally in chip and memory stocks with major holdings in Nvidia (8% NAV), TSMA (5%), AMD (4.5%), Broadcom (4.2%) and Micron (4%). It’s also got holdings in the two Korean stocks of note – SK Hynix and Samsung Electronics.

The +44% YTD gain for Fidelity Emerging Markets Ltd (LSE:FEML) highlights the focus we have seen this year on some key Asian emerging markets, with the fund offering a heavy exposure to Taiwan and China – about a third of the fund. Even more heavily weighted towards east Asia is the Pacific Horizon Investment Trust (LSE: PHI), which has about 55% of the fund in China and Taiwan – chiefly TSMC - with about 17% further in Korea – about 10% of the fund’s NAV is in Samsung Electronics. PHI has gained about 43% YTD, as has Manchester & London Investment Trust (LSE:MNL), which has significant holdings in Lumentum, Broadcom, TSMC, Bloom Energy and Nvidia. The Allianz Technology Trust (LSE:ATT) has posted a +40% YTD gain. Once more we see the familiar themes playing out with the fund holding significant weights in Alphabet, Nvidia, Broadcom and TSMC.

*Prices taken from Saxo platform, 2nd July, sorted by price return %YTD, equity ETFs and funds that are ISA eligible.