2026 Midyear ETF Market Outlook
Resilient fundamentals, rising fragility
Earnings—the lifeblood of this bull market—continue to drive the multiyear rally in risk assets, even as the macro backdrop grows more challenging.
The shift from globalization’s efficiency to deglobalization’s resilience is reshaping how portfolios are built.
The courage to follow the fundamentals
Growth is holding, earnings are delivering, and profitability remains strong—even as the underlying regime continues to shift. What does that mean for portfolios?
Diversify for a new regime with multi-asset strategies and real assets
As markets absorb overlapping macro shocks and stock-bond relationships shift, traditional diversification is becoming less reliable—making portfolio outcomes more sensitive to changing growth and inflation dynamics.
Position beyond US large-cap tech for the next wave of AI and economic realignment
As market leadership broadens, exposure to AI infrastructure, capital investment, and real-world economic activity may help diversify sources of return and capture emerging growth opportunities.
Prioritize income and resilience with active short duration and multi-sector credit
In a more uncertain macro environment where inflation and growth risks are stoking rate volatility and credit spreads remain tight, fixed income returns are likely to rely more on income and carry—making income generation and diversification across credit sectors more important.
Don’t miss out
Get more fresh insights into markets and the economy delivered straight to your inbox.
About our ETF Market Outlook
In this Market Outlook by State Street Investment Management, learn what may be next for the economy and markets and where to look for future investment opportunities.