Name: Three key ETF investing themes to watch in 2026
Uploaded: 2026-01-06T23:09:44+00:00
Duration: 860 s

Speakers

Jay Jacobs — US Head of Equity ETFs, BlackRock

Todd Rosenbluth — Head of Research, TMX VettaFI

Summary

On CNBC's ETF Edge, BlackRock's Jay Jacobs outlined three 2026 ETF themes: targeted growth/AI, income as rates fall, and diversification through alternatives. Todd Rosenbluth added that AI themes may persist, small-cap ETFs are gaining attention, and alternatives are expanding through auto-callable, private credit, long-short, and Bitcoin-linked products. Specific ETFs discussed included BAI, BALI/BALQ, IALT, TOPT/OEF, NUKZ, CAIE, and BTCI. Both guests emphasized active management and liquid alternatives as tools for a more volatile market.

Jay Jacobs framed 2026 ETF investing around growth, income, and diversification themes.
AI and the active AI fund BAI were highlighted as key growth opportunities.
Falling interest rates were cited as a reason to seek new income sources, including options-overlay ETFs.
Liquid alternatives and multi-strategy ETFs were presented as volatility ballast.
Todd Rosenbluth pointed to small caps, nuclear energy, auto-callable ETFs, and Bitcoin income ETFs.
Market concentration and TOPT/OEF equal-weight tools were discussed for portfolio construction.
Industry trends included active ETF growth and mutual-fund/ETF share-class approvals.

Ideas

Jay Jacobs US Head of Equity ETFs, BlackRock 0:41

AI is a top targeted growth theme.

The biggest 2026 growth opportunity is targeted AI exposure; investors need laser-focused artificial intelligence exposure rather than broad market beta because AI could do well in this environment.

Jay Jacobs US Head of Equity ETFs, BlackRock 0:49

Falling rates drive need for income.

Falling interest rates and expected cuts mean income investors, especially retirees, need new sources of income to diversify portfolios and generate yield.

Todd Rosenbluth Head of Research, TMX VettaFI 2:21

AI-adjacent nuclear energy trend likely continues.

AI-adjacent nuclear energy is a theme that worked in 2025 and should continue; the Range Nuclear Renaissance ETF was up 55% in 2025 and those trends are likely to continue.

Todd Rosenbluth Head of Research, TMX VettaFI 2:38

Small caps may benefit from lower rates.

Small caps underperformed in 2025 but are gaining attention because a lower-rate environment could support them; December flows into small-cap ETFs suggest the rotation may persist in 2026.

Jay Jacobs US Head of Equity ETFs, BlackRock 4:17

TOPT/OEF manage S&P concentration risk.

Market concentration is at historical levels; TOPT lets investors lean into top 20 S&P 500 mega-cap tech, while OEF offers equal-weight exposure to the top 100 S&P names to broaden away from concentration, giving tools to manage concentration risk.

Jay Jacobs US Head of Equity ETFs, BlackRock 7:23

Active ETFs can add needed alpha.

Active ETFs are resonating because volatility and dispersion create alpha opportunities, and with S&P 500 returns expected below the past decade's 13.5% annualized pace, investors may need active managers to help meet return targets.

Jay Jacobs US Head of Equity ETFs, BlackRock 7:54

BAI actively captures AI leaders for growth.

BlackRock's actively managed AI ETF BAI is one of its fastest-growing products; manager Tony Kim looks for future AI leaders, and active management can capture alpha as volatility and dispersion rise.

Jay Jacobs US Head of Equity ETFs, BlackRock 8:06

BALI/BALQ harvest dividends and option income.

BALI and BALQ are systematic active income ETFs that harvest dividends from dividend payers and write options overlays to generate additional income, fitting the need for new income sources in a falling-rate environment.

Jay Jacobs US Head of Equity ETFs, BlackRock 8:19

IALT is an all-in-one alternatives diversifier.

IALT is a multi-strategy alternatives ETF that packages dynamic macro, equity market neutral, style-premium, and credit strategies into one ticker, providing stock/bond diversification and an easy button for alternatives.

Todd Rosenbluth Head of Research, TMX VettaFI 10:54

CAIE offers income in alternative format.

The alternatives ETF category is growing; Calamos' auto-callable ETF CAIE gathered over $500 million quickly by offering income in an alternative format, showing demand for such structures.

Todd Rosenbluth Head of Research, TMX VettaFI 11:33

Strong demand for Bitcoin ETF alternatives.

Bitcoin and Bitcoin ETFs are being treated as alternatives, with strong demand for direct Bitcoin exposure and options-enhanced income.

Todd Rosenbluth Head of Research, TMX VettaFI 11:49

BTCI provides Bitcoin plus option income.

Neos' BTCI is a relatively new and popular ETF that offers income and Bitcoin exposure in one strategy, meeting demand for options-enhanced Bitcoin income.

Jay Jacobs US Head of Equity ETFs, BlackRock 13:02

Liquid alts ETFs help manage volatility.

The liquid alternatives ETF category is small but growing and should play an important role as investors build holistic portfolios and seek ballast during bouts of market volatility.

Three key ETF investing themes to watch in 2026

Summary

Ideas

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