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4 ETFs to Put on Your Watch List Before April 2026

newsfeedback@fool.com (David Dierking)
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⚡ Quantum Brief
Geopolitical tensions in Iran are driving market volatility, pushing the S&P 500 6% below its peak as of March 2026, with energy prices surging due to Strait of Hormuz disruptions. The Vanguard S&P 500 ETF (VOO) faces its deepest correction in a year, but potential U.S.-Iran negotiations could trigger a rapid rebound if tensions ease. International stocks via the Vanguard FTSE Developed Markets ETF (VEA) underperformed since March but may regain momentum if Middle East conflicts de-escalate, given strong earnings growth and lower valuations. The iShares MSCI USA Minimum Volatility ETF (USMV) offers a balanced approach, blending tech exposure with reduced volatility, positioning it well for uncertain markets. Utilities (XLU) remain resilient due to data center energy demand, though rising interest rates pose risks if Middle East instability persists.
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By David Dierking – Mar 30, 2026 at 2:00AM ESTKey PointsU.S. equities continue to languish as the conflict in Iran dominates the market narrative.With no end in sight, investors have a few different ways to approach portfolio positioning heading into Q2.Watch these four ETFs in April and what their recent performance might be telling you.As of March 24, the S&P 500 is about 6% off its all-time high. Rising geopolitical risk in the Middle East, slowing economic growth, and a stagnant jobs market are all contributing to lower investor sentiment. How bad these conditions will get and how long they could last are unclear, but there doesn't appear to be a short-term end in sight. With volatility still on the high side, these four ETFs should be on your radar as we kick off the second quarter. Each represents a unique way to approach equity investing right now and could be facing very different outlooks. Image source: Getty Images. ETFs to keep on your radar in April The broad U.S. equity market remains under pressure, primarily from the uncertainty in the Middle East. What has essentially become a closure of the Strait of Hormuz has sent energy prices soaring, forcing investors to rethink their outlooks on interest rates, inflation, and economic growth. The current correction in the Vanguard S&P 500 ETF (VOO 1.70%) is the deepest in about a year. But geopolitical conflicts are often short term in nature, and markets can rally quickly if there's a resolution. With the U.S. and Iran considering negotiations, stock prices could change quickly. ExpandNYSEMKT: VOOVanguard S&P 500 ETFToday's Change(-1.70%) $-10.09Current Price$582.96Key Data PointsDay's Range$582.03 - $590.8352wk Range$442.80 - $641.81Volume12M The more interesting option right now is the Vanguard FTSE Developed Markets ETF (VEA 0.69%). International stocks performed very well relative to the S&P 500 in January and February. But they've lagged badly since the conflict in Iran started in March. The foreign equity narrative largely remains the same, though. Earnings growth rates are improving, and valuations are compelling relative to the United States. If events in the Middle East finally start to de-escalate, we could see the return of international stock outperformance. ExpandNYSEMKT: VEAVanguard FTSE Developed Markets ETFToday's Change(-0.69%) $-0.43Current Price$62.05Key Data PointsDay's Range$61.83 - $62.7252wk Range$45.14 - $70.55Volume24M Low-volatility and value stocks have followed a similar path this year. Geopolitical risks have undone a lot of that recent outperformance, but there's no question that a lot of value remains unlocked. The iShares MSCI USA Minimum Volatility Factor ETF (USMV 1.18%) could be a primary beneficiary when this upward trend returns. Its strategy allows for the inclusion of growth areas, such as tech, while minimizing overall portfolio volatility. It could be an interesting way to potentially play both sides of the coin. Finally, the State Street Utilities Select Sector SPDR ETF (XLU +0.57%) continues to hold up remarkably well. Even though the past few years have been a risk-on story, utilities have benefited from the data center buildout and the corresponding energy demand that's coming with it. The direction of interest rates remains a concern as these are often heavily indebted companies. But an extended conflict in the Middle East could derail this sector's momentum.Read NextMar 29, 2026 •By Neil Patel1 Ridiculously Easy Way to Beat the Stock Market ExpertsMar 27, 2026 •By Leo SunRising Treasury Yields Are Spooking Investors: Should Buy-and-Hold Investors Care?Mar 27, 2026 •By Justin Pope1 Low-Cost ETF That Could Outperform Actively Managed Funds This YearMar 27, 2026 •By Trevor Jennewine1 Vanguard Index Fund to Buy Before It Soars 129%, According to a Wall Street StrategistMar 26, 2026 •By Neil PatelHow to Start Investing in the Stock Market Today With $10,000Mar 26, 2026 •By Katie BrockmanThis Is Warren Buffett's Golden Advice About Investing During a RecessionStocks MentionedVanguard S&P 500 ETFNYSEMKT: VOO$582.96(-1.70%)-$10.09Vanguard FTSE Developed Markets ETFNYSEMKT: VEA$62.05(-0.69%)-$0.43Select Sector SPDR Trust - State Street Utilities Select Sector SPDR ETFNYSEMKT: XLU$45.59(+0.57%)+$0.26iShares Trust - iShares Msci Usa Min Vol Factor ETFNYSEMKT: USMV$91.12(-1.18%)-$1.09*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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