Stock exchange-traded funds, or equity ETFs, are often low-cost, tax-efficient instruments for investors to track popular indexes or leverage experienced manager choices to beat the market. The best ones 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 the first quarter of 2026, the top-performing stock ETFs included small value fund First Trust Small Cap Value AlphaDEX Fund FYT and large value fund VictoryShares US EQ Income Enhanced Volatility Weighted ETF CDC. Data in this article is sourced from Morningstar Direct.Screening for the Best-Performing ETFsWhen 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 quarter’s best-performing stock ETFs, we screened the ones in the Morningstar US equity category 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 small value category, where the average name rose 3.70% in the first quarter.The 10 Best-Performing ETFs for Q1 2026First Trust Small Cap Value AlphaDEX Fund FYTVictoryShares US EQ Income Enhanced Volatility Weighted ETF CDCVictoryShares US Large Cap High Dividend Volatility Weighted ETF CDLALPS Sector Dividend Dogs ETF SDOGAvantis US Small Cap Value ETF AVUVFederated Hermes US Strategic Dividend ETF FDVInvesco S&P Ultra Dividend Revenue ETF RDIVFranklin Income Equity Focus ETF INCEDimensional US Small Cap Value ETF DFSVAvantis US Large Cap Value ETF AVLVMetrics for the Best-Performing Stock ETFsFirst Trust Small Cap Value AlphaDEX FundMorningstar Rating: ★★Expense Ratio: 0.7%Morningstar Category: Small ValueThe $154.3 million First Trust Small Cap Value AlphaDEX Fund was the best-performing ETF in the first quarter, with a 9.35% gain. The passively managed First Trust ETF beat the 3.70% gain on the average fund in Morningstar’s small value category for the quarter. Over the last year, the fund has gained 25.92%, outperforming the 19.67% gain on funds in its category, placing it in the 19th percentile for the period.The Neutral-rated First Trust Small Cap Value AlphaDEX Fund was launched in April 2011.VictoryShares US EQ Income Enhanced Volatility Weighted ETFMorningstar Rating: ★★Expense Ratio: 0.35%Morningstar Category: Large ValueThe $718.5 million VictoryShares US EQ Income Enhanced Volatility Weighted ETF ranked second for the quarter, returning 9.04%. The Victory Capital ETF, which is passively managed, beat the 1.57% gain on the average large value fund. Over the past year, the fund has risen 12.79%, underperforming the 15.05% gain on funds in its category, placing it in the 70th percentile for the period.The Neutral-rated VictoryShares US EQ Income Enhanced Volatility Weighted ETF was launched in July 2014.VictoryShares US Large Cap High Dividend Volatility Weighted ETFMorningstar Rating: ★★★Expense Ratio: 0.35%Morningstar Category: Large ValueThe $374.7 million VictoryShares US Large Cap High Dividend Volatility Weighted ETF was the third-best-performing ETF in the first quarter, with a 9.04% gain. The passively managed Victory Capital ETF beat the 1.57% gain on the average fund in Morningstar’s large value category for the quarter. Over the last year, the fund has gained 12.77%, underperforming the 15.05% gain on funds in its category, placing it in the 71st percentile for the period.The Silver-rated VictoryShares US Large Cap High Dividend Volatility Weighted ETF was launched in July 2015.ALPS Sector Dividend Dogs ETFMorningstar Rating: ★★Expense Ratio: 0.36%Morningstar Category: Large ValueThe $1.3 billion ALPS Sector Dividend Dogs ETF ranked fourth for the quarter, returning 8.56%. The ALPS ETF, which is passively managed, beat the 1.57% gain on the average large value fund. Over the past year, the fund has risen 16.26%, outperforming the 15.05% gain on funds in its category, placing it in the 38th percentile for the period.The ALPS Sector Dividend Dogs ETF has a Negative Morningstar Medalist Rating, meaning that our analysts expect it to be one of the worst performers within its category and think it is unlikely to deliver positive returns after fees.Avantis US Small Cap Value ETFMorningstar Rating: ★★★★★Expense Ratio: 0.25%Morningstar Category: Small ValueThe $23.5 billion Avantis US Small Cap Value ETF was the fifth-best-performing ETF in the first quarter, with a 8.55% gain. The actively managed American Century ETF beat the 3.70% gain on the average fund in Morningstar’s small value category for the quarter. Over the last year, the fund has gained 28.71%, outperforming the 19.67% gain on funds in its category, placing it in the 11th percentile for the period.The Silver-rated Avantis US Small Cap Value ETF launched in September 2019.Federated Hermes US Strategic Dividend ETFMorningstar Rating: ★★Expense Ratio: 0.5%Morningstar Category: Large ValueThe sixth-best-performing ETF in the first quarter was the $608.8 million Federated Hermes US Strategic Dividend ETF. The actively managed Federated Hermes ETF returned 8.43%, outperforming the average large value fund, which gained 1.57%. Over the last year, the fund has climbed 12.54%, underperforming the 15.05% gain on funds in its category, placing it in the 73rd percentile for the period.The Bronze-rated Federated Hermes US Strategic Dividend ETF was launched in November 2022.Invesco S&P Ultra Dividend Revenue ETFMorningstar Rating: ★★★Expense Ratio: 0.39%Morningstar Category: Mid-Cap ValueThe $952.1 million Invesco S&P Ultra Dividend Revenue ETF ranked seventh for the quarter, returning 8.03%. The Invesco ETF, which is passively managed, beat the 2.87% gain on the average mid-cap value fund. Over the past year, the fund has risen 18.68%, outperforming the 15.37% gain on funds in its category, placing it in the 32nd percentile for the period.The Neutral-rated Invesco S&P Ultra Dividend Revenue ETF launched in September 2013.Franklin Income Equity Focus ETFMorningstar Rating: ★★★★Expense Ratio: 0.29%Morningstar Category: Large ValueThe eighth-best-performing ETF in the first quarter was the $113 million Franklin Income Equity Focus ETF. The actively managed Franklin Templeton ETF returned 7.47%, outperforming the average large value fund, which gained 1.57%. Over the last year, the fund has climbed 21.01%, outperforming the 15.05% gain on funds in its category, placing it in the 10th percentile for the period.The Neutral-rated Franklin Income Equity Focus ETF launched in September 2016.Dimensional US Small Cap Value ETFMorningstar Rating: ★★★Expense Ratio: 0.3%Morningstar Category: Small ValueThe $6.8 billion Dimensional US Small Cap Value ETF was the ninth-best-performing ETF in the first quarter, with a 6.91% gain. The actively managed Dimensional ETF beat the 3.70% gain on the average fund in Morningstar’s small value category for the quarter. Over the last year, the fund has gained 26.66%, outperforming the 19.67% gain on funds in its category, placing it in the 17th percentile for the period.The Silver-rated Dimensional US Small Cap Value ETF launched in February 2022.Avantis US Large Cap Value ETFMorningstar Rating: ★★★★Expense Ratio: 0.15%Morningstar Category: Large ValueThe $10.5 billion Avantis US Large Cap Value ETF ranked tenth for the quarter, returning 6.77%. The American Century ETF, which is actively managed, beat the 1.57% gain on the average large value fund. Over the past year, the fund has risen 25.35%, outperforming the 15.05% gain on funds in its category, placing it in the 4th percentile for the period.The Silver-rated Avantis US Large Cap Value ETF launched in September 2021.What Are ETFs?Exchange-traded funds are investments that trade throughout the day on stock exchanges, much like individual stocks. They differ from traditional mutual funds—known as open-end funds—which can only be bought or sold at a single price each day. Historically, ETFs have tracked indexes, but in recent years, more ETFs have been actively managed. ETFs cover a range of asset classes, including stocks, bonds, commodities, and most recently, cryptocurrency.ETFs offer investors an efficient way to gain exposure to the markets, often with low fees and ease of buying and selling. They also generally offer higher tax efficiency than open-end funds.How to Find Top ETFs for the Long TermETFs 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 factors. 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.