Forget QQQ: 3 Sector ETFs Quietly Outperforming Tech by a Mile in 2026

Core Insights - The article emphasizes that three sector ETFs—Global X Defense Tech (SHLD), Tema Electrification (VOLT), and Procure Space (UFO)—are significantly outperforming traditional tech stocks, particularly the Invesco QQQ (QQQ) in 2026 [1] Group 1: Sector ETF Performance - Global X Defense Tech ETF (SHLD) has increased by 72% over the past year, driven by rising global defense budgets, which are projected to reach $1.5 trillion [1] - Tema Electrification ETF (VOLT) has risen by 62% in the past year and 14.6% year-to-date, capitalizing on the growing electricity demand from AI data centers [1] - Procure Space ETF (UFO) has surged by 101% in the past year, with expectations of a significant IPO from SpaceX valued at $1.75 trillion, which could elevate the entire space sector [1] Group 2: Market Trends and Drivers - The defense sector is experiencing increased funding, with a proposed $1.5 trillion budget for fiscal year 2027, indicating strong government support for military investments [1] - The demand for electricity from AI data centers is projected to consume 10% of the U.S. electricity supply by 2030, necessitating upgrades to the current power grid [1] - The anticipated SpaceX IPO and its associated projects, such as the Golden Dome project, could lead to substantial investments in the space sector, further boosting related ETFs [1]