The season for ETF renewal is here as investors prepare their portfolios for the new year. The ETF ecosystem offers an ever-growing list of options to consider, but within that list can be found hidden gems that may be worth consideration. These three underrated ETFs, each with less than $100 million in AUM, have performed very well through 2025 while going under the radar — and could be poised to make the leap in the new year.
The Global X Disruptive Materials ETF (DMAT)
The Global X Disruptive Materials ETF charges a 59 basis point (bps) fee to track the Solactive Disruptive Materials Index. The index, a market-cap weighted list of firms, includes companies identified as producing materials associated with disruptive technologies. Specifically, disruptive materials firms include companies that derive at least 50% of revenues from categories including rare earths, copper, lithium, and more. Intriguingly, the strategy marks those firms just under 50% as “pre-revenue,” giving it a view into companies poised to stand out in the space.
Together, that helped DMAT return 105% YTD according to ETF Database data. That has outperformed the fund’s ETF Database Category average by more than 20% in that time frame. The strategy’s AUM has room to grow, with momentum entering 2026 and with a wider view than AI-specific materials via its “disruptive” theming.
The ProShares S&P Global Core Battery Metals ETF (ION)
Where DMAT focuses on disruptive materials more broadly, ION looks to battery metals specifically. For a 58 bps fee, the fund tracks the S&P Global Core Battery Metals Index. The index includes companies seeing profits from metals mining. It also considers positive production value from mining in the prior year. Reweighted quarterly, the index weights holdings based on a ranking of their production-value-to-revenue ratio divided by the sum of all those ranks. Together, that has helped ION return 118% YTD.
The Matthews Korea Active ETF (MKOR)
Taking a turn away from materials, the Matthews Korea Active ETF rounds out this underrated ETFs trio. MKOR invests actively where DMAT and ION do not, and instead focuses specifically on South Korean equities.
That said, DMAT and ION have benefitted from the foreign equities push this year just as MKOR has. The fund, charging 79 bps, has returned 69.2% YTD per ETF Database, beating its category average in that time.
MKOR screens potential investments in Korea for strong fundamentals like balance sheet and employee size. Its active approach and specific focus on one nation makes it a candidate for a big leap, with the nation’s economy poised for continued positive growth in 2026.
Together, the trio of underrated ETFs has a case to make for investors. For those wanting new ETF offerings that could stand out in the new year, ION, DMAT, and MKOR may be worth watching.
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