Best Active ETFs and Mutual Funds for Growth in 2026: Tech, Defense, and Beyond

Growth-oriented investors are navigating a landscape shaped by ongoing AI advancements, semiconductor demand, geopolitical tensions driving defense spending, and broader innovation themes. Active ETFs and mutual funds stand out for their potential to outperform passive indexes through skilled stock selection, especially in dynamic sectors like technology and defense.

Active strategies allow managers to pivot toward high-conviction ideas—such as emerging defense tech, biotech innovations, or disruptive tech—rather than rigidly tracking benchmarks. While active funds carry higher fees (often 0.4–0.75%) and variable performance, top performers have delivered strong results amid 2026's trends, including rising U.S. defense budgets and tech resilience.

This guide highlights standout active options in tech, defense, and broader growth areas, focusing on those with strong recent momentum, reputable managers, and alignment with current opportunities. Always consider your risk tolerance, as active growth funds can be volatile.

Top Active ETFs for Tech-Focused Growth

Technology remains a prime growth driver, with active managers targeting disruptive areas like AI, genomics, autonomous systems, and next-gen internet. Baron Technology ETF (BCTK), newly launched by Baron Capital, emphasizes companies with durable competitive advantages in tech innovation, drawing from the firm's long-term growth philosophy.

ARK Invest's lineup continues to attract attention for bold, high-conviction bets. ARK Innovation ETF (ARKK) focuses on broad disruptive innovation, with strong 2025–2026 performance in areas like genomics and robotics. ARK Genomic Revolution ETF (ARKG) hones in on biotech and health tech breakthroughs, while ARK Autonomous Technology & Robotics ETF (ARKQ) captures automation, robotics, and space-related growth.

Polen Focus Growth ETF (PCLG) and Natixis Loomis Sayles Focused Growth ETF (LSGR) offer more concentrated, high-quality growth approaches in large-cap tech and beyond, emphasizing sustainable competitive edges. These funds suit investors seeking active oversight in fast-evolving tech landscapes.

Active ETFs Targeting Defense and Security Growth

Geopolitical dynamics and increased global defense budgets have fueled strong performance in defense-related investments. While many popular defense ETFs are passive (e.g., iShares U.S. Aerospace & Defense ETF ITA or Invesco Aerospace & Defense ETF PPA), active strategies provide flexibility to overweight emerging defense tech like cybersecurity, drones, and future security.

ARK Space Exploration & Innovation ETF (ARKX) blends defense-adjacent themes with space tech, delivering notable gains in recent periods through active selection of innovative players. Global X Defense Tech ETF (SHLD) leans into future-oriented defense technologies, positioning for growth beyond traditional contractors.

For broader exposure, active funds like T. Rowe Price Capital Appreciation Equity ETF (TCAF) may incorporate defense elements opportunistically within growth mandates. These options appeal to those betting on sustained security spending and tech integration in defense.

Broader Growth Active ETFs and Mutual Funds

Beyond sector-specific plays, diversified active growth funds offer balanced exposure with manager expertise. T. Rowe Price Capital Appreciation Equity ETF (TCAF) and Polen Focus Growth ETF (PCLG) rank highly for long-term growth potential, focusing on quality companies with strong fundamentals.

Mutual funds remain competitive: Fidelity Blue Chip Growth Fund (FBGRX) and Fidelity Growth Company Fund (FDGRX) target large-cap growth leaders, often heavily weighted in tech, with proven track records of outperformance in bullish environments.

Capital Group and T. Rowe Price active ETFs (e.g., from their Gold-rated lineups) provide growth tilts within broader mandates, blending U.S. large-caps with selective international exposure for resilience.

Key Considerations: Fees, Risks, and Performance

Active funds typically charge higher expense ratios than passive counterparts (0.4–0.75% vs. under 0.1%), so prioritize those with strong historical net-of-fee results and experienced teams. Volatility is higher in growth-focused active strategies—tech and defense themes can swing sharply with news or rates.

Look at recent performance: Many highlighted funds posted solid gains in 2025–early 2026, but past results don't guarantee future outcomes. Diversify across a few funds rather than concentrating in one, and align with your time horizon—active growth shines over longer periods.

Tax efficiency favors ETFs in taxable accounts due to in-kind redemptions, while mutual funds may suit tax-advantaged retirement plans.

Getting Started and Final Thoughts

Research via platforms like Morningstar, ETF.com, or fund provider sites for latest holdings, performance, and analyst ratings. Start small to test fit, perhaps via low-minimum brokerage accounts.

In 2026's environment of innovation acceleration and security priorities, active ETFs and mutual funds in tech, defense, and broader growth offer tools to potentially capture outsized returns through expert selection. Focus on high-conviction managers with proven processes, diversify thoughtfully, and stay informed on economic shifts. Whether tilting toward ARK's disruptive edge, Baron's quality growth, or defense-tech plays, active strategies can complement a core portfolio for enhanced upside. Review your allocations today—positioning for growth starts with informed choices.