3 Active ETFs for 2026 and Beyond

Russel Kinnel: Active ETFs are some of the best opportunities around when you pair strong management with low fees and tax advantages. I looked for three good ones in slightly out of favor spaces that look like good investments for 2026 and years to come.

3 Active ETFs for 2026 and Beyond

1. Capital Group Municipal Income CGMU
2. T. Rowe Price Dividend Growth TDVG
3. Neuberger Berman Small-Mid Cap NBSM

I’m a fan of Silver-rated Capital Group Municipal Income, CGMU. Munis have nice defensive characteristics as they rarely default, even in recessions. We like the management team and their well-constructed portfolio. The fund boost returns with a slug of bonds below-investment-grade, but that’s just part of a well-diversified portfolio, with an emphasis on revenue bonds with consistent cash stream.

I also like T. Rowe Price Dividend Growth, ticker TDVG, run by the seasoned Tom Huber. Quality stocks were left out in the cold in 2025, but that makes them pretty attractively priced for 2026. I like their defensive nature, and a little dividend growth doesn’t hurt, either. The Gold-rated fund charges just 0.5%.

Finally, I like the recently launched Neuberger Berman Small-Mid Cap, tickered NBSM. It’s had very unimpressive returns since it was launched in 2024, but the strategy actually has a fairly long and solid track record, going back to 1994. The strategy tends to lag in rallies but make it up in down and sideways markets. The fund is driven by fundamental research, focusing on healthy balance sheets and returns on assets. The portfolio spans blend and growth, and small and mid-caps. Financials and cyclicals feature prominently for a fund that’s technically in the mid-growth category. Trust me, it’s better than the last 21 months suggest.

Watch 3 Good Funds Having a Terrible Year for more from Russel Kinnel.