Can These 3 ETF Losers of 2025 Rebound in 2026?

The year 2025 was upbeat for the market with the S&P 500-based ETF SPDR S&P 500 ETF SPY, SPDR Dow Jones Industrial Average ETF DIA and PowerShares QQQ ETF QQQ adding about 17.7%, 14.3% and 21.7%, respectively (as of Dec 29, 2025).

But not all ETF areas were winners during the year. There were some corners that lost in 2025 but have chances of rebounding in 2026.

Cloud Computing

WisdomTree Cloud Computing Fund WCLD

YTD Performance: Down 5.28%

One-Month Performance: Up 4.81%

Global X Cloud Computing ETF CLOU

YTD Performance: Down 4.59%

One-Month Performance: Up 1.18%

Investment Thesis: Although Wall Street’s success is majorly linked to the tech stocks’ outperformance, the cloud computing corner of the tech ETF world failed to live up to investors’ expectations. Heavier-than-expected spending on AI infrastructure probably weighed on cloud computing behemoths’ shares in 2025. Cloud leaders are investing heavily in AI data centers and infrastructure, which can upset short-term profits.

Still, the ongoing AI boom is a plus for the space as AI should drive huge demand for cloud infrastructure (data centers, GPUs) for AI training/inference. Per Grand View Research, the global cloud computing market size is expected to witness a CAGR of 16% from 2025 to 2033. So, the segment can be a good buy-the-dip option.

Consumer Staples

Invesco S&P 500 Equal Weight Consumer Staples ETF RSPS

YTD Performance: Down 2.9%

One-Month Performance: Down 1.50%

First Trust Consumer Staples AlphaDEX ETF FXG

YTD Performance: Down 1.9%

One-Month Performance: Down 2.69%

Investment Thesis: Consumer staples stocks struggled in 2025, exhibiting a volatile trend. The segment held up well when market risks heightened but logged a steady slump once a sense of assurance returned to the market. The State Street Cons Staples Select Sector SPDR ETF XLP lost about 6% since late August.

We believe the Fed’s rate cuts since September have fueled risk-on sentiment and high-growth trades, shifting the spotlight away from staples stocks. Rising input costs due to tariffs likely added further pressure on the sector. A major turnaround in the consumer staples space appears unlikely in the early part of 2026, especially with upbeat market forecasts making the rounds.

India

Columbia India Consumer ETF INCO

YTD Performance: Down 3.0%

One-Month Performance: Down 1.82%

INQQ The India Internet ETF INQQ

YTD Performance: Down 7.2%

One-Month Performance: Down 5.3%

Investment Thesis: The India market was an underperformer in 2025. One of the biggest headwinds has been foreign institutional investors dumping Indian stocks. Trade war and geopolitical tensions probably played spoilsports. However, a moderation in selling has been noticed lately (per Economic Times). Tighter derivative trading rules leading to profit-taking also weighed on the Indian market.

However, things look brighter in 2026. The Indian GDP rose 8.2% in the September quarter of 2025, well above the market consensus of a 7.3% rise. It marked the sharpest annual growth rate since the March quarter of 2024, per Trading Economics.

According to a CNBC article, big tech is investing billions in India, attracted by its data center resources, large talent pool, digital users and market potential.According to Jefferies, as quoted on Reuters, India’s equities are expected to outshine the broader emerging-market economies in 2026, thanks to strong corporate earnings and a low current account deficit.

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This article originally published on Zacks Investment Research (zacks.com).

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