The Russia-Ukraine war has now stretched well past 1,400 days since Russia’s full-scale invasion began, remaining one of the longest sustained conflicts in Europe in recent memory.
And in late February, the U.S. and Israel launched an air attack on Iran that killed the country’s leader, Ayatollah Ali Khamenei, and effectively shut down shipping traffic in the Strait of Hormuz, through which 20% of the world’s crude oil supply passes each day. Meanwhile, the Israel-Palestine conflict continues unabated, contributing to enduring instability in the Middle East.
In the Western Hemisphere, U.S. special forces captured former Venezuelan President Nicolás Maduro in a predawn operation on Jan. 3 and flew him to New York to face federal charges, a move that has drawn scrutiny and criticism globally.
The Arctic has emerged as another flashpoint. President Donald Trump’s public comments about the strategic necessity of Greenland, and suggestions that the U.S. might pursue annexation of the territory to deter Russian and Chinese influence, have elevated tensions with European and Canadian allies.
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Even before the U.S.-Israeli attack on Iran, the latter was experiencing widespread unrest, with demonstrations spreading nationwide amid economic turmoil and dissatisfaction with the ruling regime. Protesters have reportedly been killed and arrested as security forces crack down, and Tehran has responded to the latest attack by retaliating against U.S. interests in the region.
These developments highlight a central reality of investing in 2026: Risk is no longer just about watching macroeconomic policy shifts tied to domestic data releases or central bank announcements. The globalized nature of capital markets means that conflicts and political upheavals far from U.S. shores can create ripple effects across equity and fixed-income markets.
At the same time, certain investments may benefit from geopolitical disruptions, whether through supply-demand imbalances in key commodities or flows into perceived safe-haven assets, while others may prove resilient by remaining relatively insulated or uncorrelated with broader market moves.
Here are six exchange-traded funds (ETFs) to consider amid rising geopolitical tensions in 2026:
| ETF | Expense ratio |
| VanEck Rare Earth and Strategic Metals ETF (ticker: REMX) | 0.58% |
| SPDR Gold MiniShares Trust (GLDM) | 0.10% |
| Invesco Aerospace and Defense ETF (PPA) | 0.58% |
| Select STOXX Europe Aerospace & Defense ETF (EUAD) | 0.50% |
| Xtrackers US National Critical Technologies ETF (CRTC) | 0.35% |
| iShares MSCI Switzerland ETF (EWL) | 0.50% |
VanEck Rare Earth and Strategic Metals ETF (REMX)
“The investment case for REMX is increasingly shaped by supply chain concerns and geopolitical realities,” explains Andrew Musgraves, vice president and senior product manager at VanEck. “China’s dominant position in rare-earth production and processing has elevated these materials from niche commodities to matters of national security.” REMX provides exposure at a 0.58% expense ratio.
The focus on rare earths has also intensified as melting Arctic ice opens access to previously unreachable deposits, including potential rare-earth resources in Greenland. “Against this backdrop, demand continues to rise alongside electrification, energy transition initiatives and technological advancement, positioning the companies held in REMX at the center of several trends,” Musgraves explains.
SPDR Gold MiniShares Trust (GLDM)
Gold remains a core component of central bank reserve portfolios. That official demand helps create a durable baseline of global demand, and reinforces the perception among private investors that gold is a credible store of value. In scenarios where confidence in fiat currencies deteriorates, gold continues to function as a reference asset to which many currencies are historically pegged.
Rather than owning physical bullion, investors can gain exposure through an ETF such as GLDM, which avoids dealer markups, storage costs and insurance concerns. Structured as a grantor trust, the ETF is backed by audited physical gold held in custody. GLDM also stands out for its low 0.1% expense ratio, making it a cost-efficient alternative to older, higher-fee closed-end gold trusts.
Invesco Aerospace and Defense ETF (PPA)
Geopolitical conflict often leads governments to increase military spending, which can translate into higher order backlogs for defense contractors. In the U.S., that spending is concentrated among five prime contractors: Boeing Co. (BA), RTX Corp. (RTX), Lockheed Martin Corp. (LMT), Northrop Grumman Corp. (NOC) and General Dynamics Corp. (GD). PPA provides exposure to all five in its top holdings.
The ETF tracks the SPADE Defense Index, a proprietary benchmark developed by a specialist defense-focused investment firm. Historically, the strategy has delivered strong results, with a 10-year annualized return of about 19% including reinvested distributions. That performance comes at a cost, however, as PPA carries a 0.58% expense ratio, which is pricier when compared to more general sector ETFs.
[READ: 7 Best Defense ETFs to Buy for 2026]
Select STOXX Europe Aerospace & Defense ETF (EUAD)
While the U.S. military-industrial complex is large and influential, it represents only part of global defense spending. Members of the North Atlantic Treaty Organization (NATO), including countries such as Germany, France, Italy and the U.K., maintain their own defense and aerospace firms. Most U.S.-focused defense ETFs do not capture these firms, leaving a gap for investors.
EUAD fills that role by tracking the STOXX Europe Total Market Aerospace & Defense Index for a 0.5% expense ratio. Eligible companies must be headquartered in Europe and derive at least 50% of their revenue from aerospace or defense activities. The result is a concentrated portfolio of just 14 holdings, offering targeted exposure to Europe’s defense sector rather than a broad industrial basket.
Xtrackers US National Critical Technologies ETF (CRTC)
For investors seeking a broader, all-in-one approach to geopolitical risk rather than exposure to a single sector, CRTC is designed as a core thematic holding. The ETF targets six priority areas identified by the Pentagon as critical to national security, including artificial intelligence, biomanufacturing, contested logistics, battlefield information dominance, hypersonics and directed energy technologies.
Beyond sector exposure, CRTC applies a geostrategic risk screen that evaluates how closely a prospective company is tied to adversarial nations as defined by the U.S. intelligence community. This additional filter aims to reduce exposure to risks such as expropriation, nationalization or forced divestment during periods of heightened geopolitical tension. CRTC charges a 0.35% expense ratio.
iShares MSCI Switzerland ETF (EWL)
Switzerland is not a member of NATO and has maintained a long-standing policy of military neutrality, reinforced by difficult terrain and an easily mobilized citizen army. That posture is complemented by stable political institutions, a credible central bank and a resilient financial system, all of which have helped Switzerland maintain investor confidence when trust in global markets weakens.
While the Swiss franc is often viewed as a classic safe-haven currency, investors seeking growth and willing to accept more risk may prefer a Swiss equity ETF like EWL. The fund tracks the MSCI Switzerland 25/50 Index, which holds 40 companies and charges a 0.5% expense ratio. Its top holdings include globally recognized mega-cap firms such as Nestlé SA (NESN.SW) and UBS Group AG (UBSG.SW).
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6 ETFs to Buy When Geopolitical Tensions Rise originally appeared on usnews.com
Update 03/06/26: This story was published at an earlier date and has been updated with new information.