Estimated reading time: 3 minutes
A significant return generated this year by one ETF has been recorded by the Breakwave Tanker Shipping ETF (BWET). As reported by ETF.com on the top-performing ETFs of 2026, BWET posted a return of more than 400% year to date at the end of March. This made BWET one of the best-performing ETFs in the broader ETF market during the period under review. The same ETF.com report also showed oil-based ETFs such as USO and BNO trailing behind BWET, while still posting gains of more than 80% year to date.
What contributed to this impressive performance? Simply put, the rise in tanker rates due to war risk, disruption in the oil market, and strain in global shipping. Barron’s reported that energy ETFs led the quarter as geopolitical conflict pushed oil prices above $100 per barrel. A similar effect lifted tanker-related ETFs, as investors expected higher shipping costs and tighter market conditions.
However, it would be misleading to say that BWET is the best ETF overall. That may not be the case. A fund can become one of the highest returners in the ETF market because it is tied to a narrow theme that produces strong gains, but it can also suffer equally sharp losses if conditions change. According to ETF.com rankings, many of the top performers this year were oil, gasoline, crude, and shipping funds. This suggests that the biggest returns in 2026 were driven by a specific macroeconomic shock rather than by broad, long-term growth.
A more mainstream ETF that also performed strongly this year is the United States Oil Fund (USO). According to ETF.com, USO gained 84% year to date. Barron’s also reported a return of about 82.9%. That is a remarkable performance for an ETF. This return was largely driven by the reaction of oil prices to geopolitical conflict.
The main lesson from ETF returns this year is clear. The strongest gains have come primarily from energy and shipping, not from the general market indexes. Although major index ETFs usually provide steadier and more reliable returns over time, the funds that saw the biggest gains in 2026 were largely lifted by oil shocks and pressure on trade routes.
5 Best ETFs To Invest In 2026 for Growth and Income | March Edition