Exchange-traded funds, or ETFs, are often low-cost instruments for investors to track popular indexes or leverage experienced manager choices to beat the market. The best ones serve as low-cost building blocks in a portfolio, and unlike open-end mutual funds, all ETFs are traded throughout the day on an exchange.
In the second quarter of 2026, the top-performing ETFs included equity technology funds iShares MSCI Global Semiconductors UCITS ETF SEMI and Global X AI Semiconductor & Quantum UCITS ETF CHPX. Data in this article is sourced from Morningstar Direct.
Screening for the Best-Performing ETFs
When evaluating ETFs, investors should focus on long-term returns across multiple years and market cycles. However, short-term returns can provide valuable information about biases within strategies.
To find the quarter’s best-performing ETFs, we screened those in Morningstar’s equity, allocation, or fixed-income categories that are available in the UK. We excluded ETFs with less than USD 25 million (£18.8 million) in total assets. We also excluded funds that fall into Morningstar’s “trading” categories, as these funds are designed for active traders and are not suitable for long-term investors.
Within our list, five funds fell into the Korea equity category, where the average name rose 63.57% in the second quarter.
The 10 Best-Performing ETFs for Q2 2026
- iShares MSCI Global Semiconductors UCITS ETF SEMI
- Global X AI Semiconductor & Quantum UCITS ETF CHPX
- HSBC NASDAQ Global Semiconductor UCITS ETF HNSS
- VanEck Semiconductor UCITS ETF SMH
- KraneShares ICBCCS SSE Star Market 50 Index UCITS ETF KSTR
- Franklin FTSE Korea UCITS ETF FLXK
- HSBC MSCI KOREA CAPPED UCITS ETF HKOD
- Xtrackers MSCI Korea UCITS ETF XKSD
- Amundi MSCI Korea UCITS ETF KRW
- iShares VII PLC - iShares MSCI Korea UCITS ETF USD (Acc) CSKR
Metrics for the Best-Performing ETFs
iShares MSCI Global Semiconductors UCITS ETF
- : ★★★★★Morningstar Rating
- : 0.35%Expense Ratio
- : Equity TechnologyMorningstar Category
The best-performing ETF in the second quarter was the £4.7 billion iShares MSCI Global Semiconductors UCITS ETF. The passively managed iShares ETF returned 93.81%, outperforming the average equity technology fund, which gained 36.11%. Over the last year, the fund has climbed 197.11%, outperforming the 57.29% gain on funds in its category, placing it in the third percentile for the period.
The Neutral-rated iShares MSCI Global Semiconductors UCITS ETF was launched in August 2021.
Global X AI Semiconductor & Quantum UCITS ETF
- Morningstar Rating: N/A
- Expense Ratio: 0.35%
- Morningstar Category: Equity Technology
The £46.5 million Global X AI Semiconductor & Quantum UCITS ETF ranked second for the quarter, returning 93.76%. The Global X ETF, which is passively managed, beat the 36.11% gain on the average equity technology fund. The fund was first launched in November 2025, and as a result, it does not have a one-year record.
The Global X AI Semiconductor & Quantum UCITS ETF has not yet been awarded a Morningstar Medalist Rating.
HSBC NASDAQ Global Semiconductor UCITS ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.35%
- Morningstar Category: Equity Technology
The third best-performing ETF in the second quarter was the £231.6 million HSBC NASDAQ Global Semiconductor UCITS ETF. The passively managed HSBC ETF returned 90.99%, outperforming the average equity technology fund, which gained 36.11%. Over the last year, the fund has climbed 192.61%, outperforming the 57.29% gain on funds in its category, placing it in the fourth percentile for the period.
The Neutral-rated HSBC NASDAQ Global Semiconductor UCITS ETF was launched in January 2022.
VanEck Semiconductor UCITS ETF
- Morningstar Rating: ★★★★★
- Expense Ratio: 0.35%
- Morningstar Category: Equity Technology
The £7 billion VanEck Semiconductor UCITS ETF was the fourth best-performing ETF in the second quarter, with a 87.57% gain. The passively managed VanEck ETF beat the 36.11% gain on the average fund in Morningstar’s equity technology category for the quarter. Over the last year, the fund has gained 176.19%, outperforming the 57.29% gain on funds in its category, placing it in the sixth percentile for the period.
The Neutral-rated VanEck Semiconductor UCITS ETF was launched in December 2020.
KraneShares ICBCCS SSE Star Market 50 Index UCITS ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.82%
- Morningstar Category: China Equity - A Shares
The fifth best-performing ETF in the second quarter was the £43.4 million KraneShares ICBCCS SSE Star Market 50 Index UCITS ETF. The passively managed Krane ETF returned 77.69%, outperforming the average China equity - a shares fund, which gained 19.75%. Over the last year, the fund has climbed 139.75%, outperforming the 55.68% gain on funds in its category, placing it in the fourth percentile for the period.
The KraneShares ICBCCS SSE Star Market 50 Index UCITS ETF has a Negative Morningstar Medalist Rating, meaning that our analysts expect it to be one of the worst performers within its category and think it is unlikely to deliver positive returns after fees.
Franklin FTSE Korea UCITS ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.09%
- Morningstar Category: Korea Equity
The £3.6 billion Franklin FTSE Korea UCITS ETF was the sixth best-performing ETF in the second quarter, with a 77.41% gain. The passively managed Franklin Templeton ETF beat the 63.57% gain on the average fund in Morningstar’s Korea equity category for the quarter. Over the last year, the fund has gained 202.05%, outperforming the 162.01% gain on funds in its category, placing it in the 12th percentile for the period.
The Bronze-rated Franklin FTSE Korea UCITS ETF was launched in June 2019.
HSBC MSCI KOREA CAPPED UCITS ETF
- Morningstar Rating: ★★★★
- Expense Ratio: 0.5%
- Morningstar Category: Korea Equity
The £355.7 million HSBC MSCI KOREA CAPPED UCITS ETF ranked seventh for the quarter, returning 72.30%. The HSBC ETF, which is passively managed, beat the 63.57% gain on the average Korea equity fund. Over the past year, the fund has risen 198.87%, outperforming the 162.01% gain on funds in its category, placing it in the 20th percentile for the period.
The Bronze-rated HSBC MSCI KOREA CAPPED UCITS ETF was launched in April 2011.
Xtrackers MSCI Korea UCITS ETF
- Morningstar Rating: ★★★
- Expense Ratio: 0.45%
- Morningstar Category: Korea Equity
The £413.3 million Xtrackers MSCI Korea UCITS ETF was the eighth best-performing ETF in the second quarter, with a 72.16% gain. The passively managed Xtrackers ETF beat the 63.57% gain on the average fund in Morningstar’s Korea equity category for the quarter. Over the last year, the fund has gained 196.87%, outperforming the 162.01% gain on funds in its category, placing it in the 36th percentile for the period.
The Neutral-rated Xtrackers MSCI Korea UCITS ETF was launched in July 2007.
Amundi MSCI Korea UCITS ETF
- Morningstar Rating: ★★
- Expense Ratio: 0.45%
- Morningstar Category: Korea Equity
The ninth best-performing ETF in the second quarter was the £722.9 million Amundi MSCI Korea UCITS ETF. The passively managed Amundi ETF returned 72.09%, outperforming the average Korea equity fund, which gained 63.57%. Over the last year, the fund has climbed 198.30%, outperforming the 162.01% gain on funds in its category, placing it in the 28th percentile for the period.
The Neutral-rated Amundi MSCI Korea UCITS ETF was launched in February 2019.
iShares VII PLC - iShares MSCI Korea UCITS ETF USD (Acc)
- Morningstar Rating: ★★★
- Expense Ratio: 0.65%
- Morningstar Category: Korea Equity
The £695.3 million iShares VII PLC - iShares MSCI Korea UCITS ETF USD (Acc) ranked tenth for the quarter, returning 72.07%. The iShares ETF, which is passively managed, beat the 63.57% gain on the average Korea equity fund. Over the past year, the fund has risen 196.84%, outperforming the 162.01% gain on funds in its category, placing it in the 44th percentile for the period.
The Neutral-rated iShares VII PLC - iShares MSCI Korea UCITS ETF USD (Acc) was launched in August 2010.
What Are ETFs?
Exchange-traded funds are investments that trade throughout the day on stock exchanges, much like individual stocks. They differ from traditional mutual funds—known as open-end funds—which can only be bought or sold at a single price each day. Historically, ETFs have tracked indexes, but in recent years, more ETFs have been actively managed. ETFs cover a range of asset classes, including stocks, bonds, commodities, and most recently cryptocurrency.
The Best ETFs: More Ideas to Consider
- Read the latest articles on ETFs.
- Use the ETF screener to find the best ETFs according to your specific criteria. You can search for funds based on their fees, Morningstar Medalist Ratings, manager tenures, and more.
