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One of the Top Performing ETFs of 2026 So Far May Surprise You
Reported by Nathan Reiff. Published: 2/16/2026.
Key Points
- BWET is one of the leading ETFs by year-to-date performance, with returns of around 98% so far in 2026.
- The fund has a unique focus on oil freight futures, generating profit when oil shipment prices rise beyond market expectations.
- However, BWET's sky-high expenses, limited asset base, and low trading volume all present additional risks on top of an already-complex strategy.
- Special Report: [Sponsorship-Ad-6-Format3]
As the market settles into 2026, exchange-traded funds (ETFs) remain as popular as ever. U.S. ETFs attracted an impressive $1.48 trillion in total inflows in 2025 as hundreds of new products launched, broadening the strategies available to investors through these tools.
In the face of uncertainty — geopolitics, trade shifts, a possible AI bubble and more — investors may increasingly turn to ETFs for their defensive potential. At the same time, several funds have hit the ground running with strong momentum in 2026 and may offer opportunities for investors with higher risk tolerance to capture early gains.
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One example is the Breakwave Tanker Shipping ETF (NYSEARCA: BWET), which sits near the top of the list of best-performing ETFs so far in 2026. BWET is up nearly 100% year-to-date (YTD) and 223% over the last 12 months. Below, we examine what's driving this growth, whether more upside may remain, and what investors should consider before adding this high-momentum ETF to a portfolio.
A Closer Look at BWET's Strategy
BWET provides exposure to the crude oil transport market through the Breakwave Tanker Futures Index, which tracks crude oil tanker freight rates by investing in freight futures contracts. As one of the few ways for investors to access freight futures without trading futures directly, BWET's exposure differs from a strategy that holds shares of oil tanker companies.
It seeks gains when oil freight futures rise beyond levels already priced in by the market.
Global oil shipping remains a vital part of the energy industry, centered around major exporters such as the United States, Venezuela and Brazil, and major importers like China and many European countries. Shipping rates reached a multi-year high late in 2025 as demand increased; with cold winter temperatures persisting in many regions, demand may stay elevated in the coming weeks.
BWET's approach uses oil freight futures contracts one to six months forward, with a weighted average expiration of 60 to 90 days. The index primarily tracks very large crude carriers (VLCCs), the largest tankers by capacity.
Evaluating BWET's Recent and Potential Performance
BWET's surge likely reflects higher winter demand and shifts in global oil trade resulting from U.S. pressure on Venezuela and other political developments. While winter demand may persist through March, it should subside afterward, and the peak demand for the season is probably behind us.
However, ongoing geopolitical conflicts could continue to affect the global oil market. The precise impact on freight futures is hard to predict, but investors who expect further turmoil and sustained elevated freight rates may see potential for BWET's rally to continue.
Other Factors to Consider
Despite its strong performance, investors should weigh several risks before adding BWET. Investing in futures contracts—even indirectly via an ETF—is more complex and can be riskier than traditional equities. BWET's niche strategy has narrow appeal: the ETF manages only about $8.5 million and has low average trading volume, which can increase trading costs or create liquidity challenges for active traders.
Additionally, BWET carries a high expense ratio of 3.5%. The sponsor capped fees at 3.5% through the end of 2025 under a special offer and warned expenses could rise afterward. That high fee could deter many investors; others seeking exposure to the oil market may find more cost-effective alternatives elsewhere.
Made by Toyota: Joby Aviation Targeting 4 Aircraft Per Month
Reported by Jeffrey Neal Johnson. Published: 2/17/2026.
Key Points
- Toyota has deployed a team of engineers to Joby's facilities to implement the Toyota Production System to improve manufacturing efficiency.
- Joby recently secured capital to fund operations through the certification phase and support the expansion of its production capabilities.
- The company is shifting from a research startup to an industrial manufacturer with a clear path toward commercial passenger flights in the near future.
- Special Report: [Sponsorship-Ad-6-Format3]
The stock chart for Joby Aviation (NYSE: JOBY) tells one story, but the activity on the factory floor tells a different one. As of mid-February, shares of the electric air taxi pioneer are trading near $9.88.
That reflects a decline of roughly 25% since the year began, rattling retail investors who have watched the company burn cash while awaiting the launch of commercial flights. A Feb. 17 announcement, however, signals Joby is shifting from research startup to industrial manufacturer within the aerospace sector.
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Joby revealed updated plans to double manufacturing capacity, targeting a production rate of four aircraft per month by 2027. While "four" might sound small to an automotive investor, in aerospace that rate represents a significant step forward.
The critical detail for investors isn't just the target number; it's how Joby plans to achieve it. The company is not doing this alone. It is deploying nearly 200 engineers from Toyota (NYSE: TM) directly into its facilities to oversee the expansion. That move suggests the primary risk for Joby is no longer whether it will fly, but whether it can build thousands of aircraft without running out of cash.
The Toyota Production System Arrives
For years, the partnership between Joby and Toyota was viewed mainly as a financial lifeline. Toyota has invested nearly $900 million in the startup, providing capital to keep the lights on during the expensive research and development phase. The Feb. 17 update changes that relationship from passive investment to active operational management.
Deploying approximately 200 Toyota engineers to Joby’s pilot production line in Marina, California, and its future high-volume facility in Dayton, Ohio, represents a major transfer of manufacturing know-how. These engineers are tasked with implementing the Toyota Production System (TPS).
For those unfamiliar with manufacturing, TPS is widely regarded as the gold standard for efficiency. It focuses on three core pillars:
- Just-in-Time Production: Reducing inventory costs by having parts arrive exactly when needed.
- Jidoka (Automation with a Human Touch): Designing machines that stop automatically when a defect is detected, preventing bad parts from moving down the line.
- Kaizen (Continuous Improvement): A culture where every worker is empowered to suggest changes that speed up the process.
Applied to aerospace, this approach could create a substantial competitive advantage. Traditional aviation manufacturing is bespoke, slow, and costly. By adopting automotive-grade efficiency, Joby aims to lower the unit cost of each aircraft significantly.
If it can produce four aircraft per month by 2027 with low defect rates, Joby would create a clearer path to profitability that competitors relying on standard aerospace methods will struggle to match. This operational moat is hard to quantify on a balance sheet today, but it could be the foundation for future earnings.
The Price of Ambition
Building a factory and hiring hundreds of specialized engineers is expensive. That reality hit shareholders in late January 2026, when Joby completed a capital raise totaling about $1 billion through a mix of new stock and convertible bonds.
The market reacted negatively, driving the stock down roughly 17% in a matter of days. The decline was driven by dilution: when a company issues new shares, existing shares represent a smaller piece of the company, which often lowers the price in the short term.
In the capital-intensive world of aerospace, cash is oxygen. After the raise, Joby’s cash reserves sit above $1 billion. That war chest matters for two reasons:
- Burn Rate: The company reported a net loss of about $401 million in the third quarter of 2025. Without the January capital injection, the aggressive manufacturing targets announced this week would be mathematically impossible.
- Infrastructure: The funds support acquisition and tooling for the 700,000-square-foot facility in Dayton, Ohio.
Investors must weigh the pain of short-term dilution against the risk of insolvency. The electric vertical take-off and landing (eVTOL) sector is crowded with cash-strapped companies. By securing capital now, Joby has bought the runway needed to survive until commercial revenues begin. The drop in share price was essentially the cost of ensuring the company remains solvent through the critical 2026–2027 ramp-up.
Volatility vs. Viability
The road ahead remains volatile. While the 2027 manufacturing targets provide a clear destination, Joby still needs to execute its near-term commercial launch. The company is targeting the start of passenger services in Dubai in 2026, followed by operations in New York and Los Angeles in partnership with Delta Air Lines.
Despite current bearish sentiment and a Reduce consensus rating from some analysts, the average price target sits at $13.21. That implies potential upside of more than 30% from current levels ($9.88). This disconnect suggests Wall Street is cautious about timing but recognizes the value of the underlying assets.
The investment thesis is straightforward: the recent share-price decline is a backward-looking reaction to financing, while the Toyota integration is a forward-looking signal of industrial viability.
Joby is effectively trading short-term volatility for operational stability. If the company can reach four aircraft per month by 2027, today's share price may eventually look like a discount on a major industrial player.
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