ALPS names 3 ETFs for 2026 geopolitical volatility

ALPS recommends three exchange-traded funds — the ALPS Equal Sector Weight ETF (EQL), the ALPS Smith Core Plus Bond ETF (SMTH) and the ALPS BBH Intermediate Municipal Bond ETF (MNBD) — to help manage higher market volatility in 2026 driven by elevated geopolitical tensions and policy uncertainty, the firm’s Q2 2026 Market Themes to Watch report says.

EQL provides equal-weight exposure to all 11 S&P 500 sectors through a fund-of-funds structure. The report lists a year-to-date return of 9.1% and a one-month return of 5.6%. EQL has drawn $65.5 million in net flows so far in 2026, holds about $694.4 million in assets and charges a 0.27% expense ratio. Top underlying sector ETFs noted in the report include the Technology, Materials, Consumer Discretionary, Real Estate and Industrial sector ETFs, each representing roughly 9%–11% of the fund.

SMTH is described as an actively managed core-plus bond ETF that can allocate across government, corporate and securitized sectors. The report shows SMTH has attracted $347.9 million in net flows year to date, including about $79.9 million in the past month. The fund has $2.67 billion in assets, a 0.59% expense ratio, a year-to-date return of 0.57% and a one-month return of 0.42%.

MNBD targets tax-exempt, intermediate-maturity municipal bonds and is managed by Brown Brothers Harriman with a capital preservation focus for tax-sensitive investors. The report records a year-to-date return of 1.2% and a one-month return of 0.65%. MNBD has drawn $11.8 million in net flows this year, holds $55.1 million in assets and carries a 0.44% expense ratio.

The report notes rising cross-asset volatility and sharp market rotations in 2026 have exposed concentration risks in portfolios that remain heavily weighted toward a few large-cap sectors, particularly technology. Equal-weight equity strategies spread exposure across sectors rather than concentrating in the largest market-cap names, while actively managed bond funds can change sector and credit exposure in response to widening spreads or shifting rate expectations.

The report presents the three funds as examples that reduce single-sector concentration in equities or that use active fixed-income management to adjust exposures as market conditions evolve.