Top-Performing Stock ETFs

Stock exchange-traded funds, or equity ETFs, are often low-cost, tax-efficient instruments for tracking popular indexes or leveraging experienced manager choices to beat the market. The best 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 July 2026, the top-performing stock ETFs included mid-cap value fund Bushido Capital US SMID Cap Equity ETF RNIN and large value fund Distillate US Fundamental Stability & Value ETF DSTL. 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 month’s best-performing stock ETFs, we screened the Morningstar US equity category for those that trade within the United States. We excluded exchange-traded notes and ETFs with less than $100 million in total assets. Within our list, three funds fell into the large value category, where the average name rose 2.75% in July.

The 10 Best-Performing ETFs for July 2026

1. Bushido Capital US SMID Cap Equity ETF RNIN
2. Distillate US Fundamental Stability & Value ETF DSTL
3. Bushido Capital US Equity ETF SMRI
4. Akre Focus ETF AKRE
5. Invesco S&P Ultra Dividend Revenue ETF RDIV
6. Pacer US Cash Cows 100 ETF COWZ
7. Pacer US Small Cap Cash Cows 100 ETF CALF
8. Oakmark US Large Cap ETF OAKM
9. iShares Core Dividend ETF DIVB
10. AQE Core ETF AQEC

Metrics for the Best-Performing Stock ETFs

Bushido Capital US SMID Cap Equity ETF

• Morningstar Rating
  : N/A
• Expense Ratio
  : 0.68%
• Morningstar Category
  : Mid-Cap Value

The best-performing ETF in July was the $185.1 million Bushido Capital US SMID Cap Equity ETF. The actively managed Bushido Capital ETF returned 11.41%, outperforming the average mid-cap value fund, which gained 2.56%. Over the last year, the fund has climbed 39.07%, outperforming the 23.43% gain on funds in its category, placing it in the 1st percentile.

The Bushido Capital US SMID Cap Equity ETF has not yet been awarded a Morningstar Medalist Rating.

Distillate US Fundamental Stability & Value ETF

• Morningstar Rating: ★★
• Expense Ratio: 0.39%
• Morningstar Category: Large Value

The $2 billion Distillate US Fundamental Stability & Value ETF was the second-best-performing ETF in July, with an 8.81% gain. The actively managed Distillate Capital ETF beat the 2.75% gain on the average fund in Morningstar’s large value category for the month. Over the last year, the fund has gained 20.36%, underperforming the 24.08% gain on funds in its category, placing it in the 72nd percentile.

The Bronze-rated Distillate US Fundamental Stability & Value ETF launched in October 2018.

Bushido Capital US Equity ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.71%
• Morningstar Category: Mid-Cap Value

The third-best-performing ETF in July was the $648.8 million Bushido Capital US Equity ETF. The actively managed Bushido Capital ETF returned 8.02%, outperforming the average mid-cap value fund, which gained 2.56%. Over the last year, the fund has climbed 38.76%, outperforming the 23.43% gain on funds in its category, placing it in the 2nd percentile.

The Bushido Capital US Equity ETF has not yet been awarded a Morningstar Medalist Rating.

Akre Focus ETF

• Morningstar Rating: ★
• Expense Ratio: 0.98%
• Morningstar Category: Large Growth

The $5.3 billion Akre Focus ETF was the fourth-best-performing ETF in July, with a 7.97% gain. The actively managed Akre ETF beat the 3.15% loss on the average fund in Morningstar’s large growth category for the month. Over the last year, the fund has dropped 20.12%, underperforming the 10.56% gain on funds in its category, placing it in the 100th percentile.

The Neutral-rated Akre Focus ETF launched in August 2009.

Invesco S&P Ultra Dividend Revenue ETF

• Morningstar Rating: ★★★
• Expense Ratio: 0.39%
• Morningstar Category: Mid-Cap Value

The fifth-best-performing ETF in July was the $1.4 billion Invesco S&P Ultra Dividend Revenue ETF. The passively managed Invesco ETF returned 7.95%, outperforming the average mid-cap value fund, which gained 2.56%. Over the last year, the fund has climbed 34.90%, outperforming the 23.43% gain on funds in its category, placing it in the 10th percentile.

The Bronze-rated Invesco S&P Ultra Dividend Revenue ETF launched in September 2013.

Pacer US Cash Cows 100 ETF

• Morningstar Rating: ★★★
• Expense Ratio: 0.49%
• Morningstar Category: Mid-Cap Value

The $18.8 billion Pacer US Cash Cows 100 ETF ranked sixth for the month, returning 7.54%. The Pacer ETF, which is passively managed, beat the 2.56% gain on the average mid-cap value fund. Over the past year, the fund has risen 22.64%, performing roughly in line with the 23.43% gain on funds in its category, placing it in the 56th percentile.

The Neutral-rated Pacer US Cash Cows 100 ETF launched in December 2016.

Pacer US Small Cap Cash Cows 100 ETF

• Morningstar Rating: ★
• Expense Ratio: 0.59%
• Morningstar Category: Small Value

The seventh-best-performing ETF in July was the $3.7 billion Pacer US Small Cap Cash Cows 100 ETF. The passively managed Pacer ETF returned 7.05%, outperforming the average small value fund, which gained 0.17%. Over the last year, the fund has climbed 36.69%, outperforming the 31.14% gain on funds in its category, placing it in the 30th percentile.

The Neutral-rated Pacer US Small Cap Cash Cows 100 ETF launched in June 2017.

Oakmark US Large Cap ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.59%
• Morningstar Category: Large Value

The $1.1 billion Oakmark US Large Cap ETF ranked eighth for the month, returning 7.03%. The Natixis ETF, which is actively managed, beat the 2.75% gain on the average large value fund. Over the past year, the fund has risen 17.51%, underperforming the 24.08% gain on funds in its category, placing it in the 84th percentile for the period.

The Gold-rated Oakmark US Large Cap ETF launched in December 2024.

iShares Core Dividend ETF

• Morningstar Rating: ★★★★
• Expense Ratio: 0.05%
• Morningstar Category: Large Value

The $1.7 billion iShares Core Dividend ETF was the ninth-best-performing ETF in July, with a 6.86% gain. The passively managed iShares ETF beat the 2.75% gain on the average fund in Morningstar’s large value category for the month. Over the last year, the fund has gained 34.72%, outperforming the 24.08% gain on funds in its category, placing it in the fifth percentile for the period.

The Gold-rated iShares Core Dividend ETF launched in November 2017.

AQE Core ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.49%
• Morningstar Category: Large Blend

The $611.2 million AQE Core ETF ranked tenth for the month, returning 5.89%. The Arlington ETF, which is actively managed, beat the 0.03% loss on the average large blend fund. The fund launched in November 2025 and does not have a one-year record.

The AQE Core ETF has not yet been awarded a Morningstar Medalist Rating.

How to Find Top ETFs for the Long Term

ETFs are often equated with low-cost indexing. However, the ETF marketplace has grown increasingly complicated. Some ETFs track a very narrow part of the market or pursue specific themes. Some ETFs invest based on a particular factor or a combination of them. And now there are actively managed ETFs.

Use these Morningstar resources to help find the best ETFs for the long term:

• Learn about the types of exchange-traded funds, their costs, and how to invest in them by reading Morningstar’s Guide to ETF Investing.
• Find the highest-rated ETFs across all investment categories in The Best ETFs and How They Fit in Your Portfolio.
• Review Morningstar director of personal finance Christine Benz’s suggested ETF portfolios for those saving for or already in retirement, including Tax-Efficient Retirement-Saver Portfolios for ETF Investors, Tax-Sheltered Retirement-Saver Portfolios for ETF Investors, ESG Tax-Sheltered Retirement-Saver Portfolios for ETF Investors, Tax-Sheltered Retirement-Bucket Portfolios for ETF Investors, and Tax-Sheltered ESG Retirement-Bucket Portfolios for ETF Investors.
• Research ETFs based on your personal selection criteria by using our Morningstar Investor Screener. The tool, which is available to Morningstar Investor members, allows investors to screen ETFs based on various criteria, including asset class, Morningstar Category, Medalist Rating, and fee level.
• Visit Morningstar’s ETF page for the latest articles and videos from our ETF specialists.