ETF Sequels: The Godfather Part II of New Launches?

The pace of innovation in the ETF industry is hitting breakneck speeds. We have already seen more than 450 new launches in 2026, part of a massive wave of fresh products testing the waters. While $1 billion-plus blockbusters like the ProShares GENIUS Money Market ETF (IQMM) and the Roundhill Memory ETF (DRAM) have grabbed headlines and gathered significant assets, three under-the-radar funds have quietly hit the tape in the first few months 2026 and caught my eye. A fourth one launched this week.Key TakeawaysETF launches are occurring at rapid pace in 2026, with many successful funds coming to market. Some active managers, such as Baron and T. Rowe Price, have launched interesting emerging market ETFs this year. Under-the-radar thematic index-based ETFs are also worthy of attention, from Sprott and Tuttle. As discussed on this week’s ETF Prime with Nate Geraci, these aren’t the most popular funds yet. However, they are fascinating expansions from notable firms. In Hollywood terms, think of them like anticipated sequels. To date myself, I wonder if they will have the pedigree to become the investment equivalents of The Godfather Part II or The Empire Strikes Back, and not Hangover Part II.Targeting the Geopolitical Supply ChainFirst we discussed the Sprott Rare Earth Ex-China ETF (REXC). Think of this as the more targeted, politically sensitive sibling of the Sprott Critical Materials ETF (SETM A-). REXC offers a concentrated, niche play designed to de-monopolize China’s heavy influence in the extremely important rare earths supply chain.  A group of 17 different minerals, rare earths are utilized in a variety of different industries. This includes applications in defense, AI, and clean energy technology. As countries continue to re-focus their priorities amid shifting economies and ongoing geopolitical challenges, ex-China supply chains will be at the center of policy, capital and strategic objectives.The Institutional Lineup ExtensionsWe are also seeing legacy active powerhouses launch compelling sequels to popular strategies. T. Rowe Price, which just crossed the $25 billion ETF asset mark, recently introduced the T. Rowe Price Emerging Markets Equity Research ETF (TEMR). It is the direct emerging-markets relative of their $3 billion T. Rowe Price US Equity Research ETF (TSPA B).  TSPA has thrived by using an analyst-driven approach that allocates capital to roughly 30 equity research analysts based on the benchmark weight of the stocks they cover. TEMR uses a structured portfolio construction approach that weights each country, sector, and industry similarly to the MSCI Emerging Markets Index, attempting to add alpha purely through fundamental stock selection. Meanwhile, the Baron Emerging Markets Select ETF BECM represents a major firm doubling down on its strengths. Baron made a splash when they came to market with their first suite of ETFs in December 2025, so it is great to see them continue to build out their lineup in 2026.  The firm has a strong heritage of active management. BECM’s manager has run the underlying $4 billion Baron Emerging Markets mutual fund strategy since 2011, bringing over a decade of proven active expertise to the ETF wrapper.The Anti-AI TradeFinally, active funds dominate the ETF launch conversation, but index innovation is still occurring. This week, the Tuttle Heavy Asset Low Obsolescence Index ETF (HALX) launched, designed as an explicit hedge against technological disruption. VettaFi is the index provider behind this immune-to- AI-disruption trade, tracking tangible companies that software simply cannot replace. This fund is not a sequel, but it still caught my attention. They may not have the billions of Roundhill’s DRAM or ProShares’ IQMM yet, but for advisors looking for ETF innovation, these four funds are absolutely worth watching. For more news, information, and analysis, visit the Thematic Investing Content Hub. VettaFi LLC (“VettaFi”) is the index provider for HALX for which it receives an index licensing fee. However, HALX is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of HALX.