Saltydog Investor looks at the sectors getting the best out of the rally

After a disappointing March, stock markets rallied in April with some going on to new all-time highs. Most of the Investment Association (IA) sectors made gains, and more than 90% of the funds that we monitor went up.

Leading the way was the Liontrust Global Technology C GBP Acc (BYXZ5N7) fund, up 35.2%. Two other funds that we have written about recently, Barings Korea I GBP Acc (B9M3RQ4) and Polar Capital Global Tech I Inc GBP (B42W4J8), have also risen by 30% or more.

Saltydog’s top 10 funds in April 2026

Data source: Morningstar. Past performance is not a guide to future performance.

In the first few weeks after the US-Israeli attacks on Iran, stock markets around the world fell sharply. March ended up being one of the worst months we’ve seen in years. The FTSE 100 fell by 6.7%, while the FTSE 250 lost 10.7%.

There were other double-digit losses for Germany’s Dax, the Indian Sensex, and Japan’s Nikkei 225. The US stock markets fared better than most, but the Dow Jones still dropped by 5.4%, the S&P 500 fell by 5.1% and the Nasdaq finished the month down 4.8%.

However, following the ceasefire announced on 7 April, markets began to rally. Although we are yet to see a final resolution, and tension remains high, equity prices continued to rise throughout the month. The FTSE gained 2.0% and the FTSE 250 rose by 5.9%.

The standout performer was the Nikkei 225, with a one-month return of 16.1%. The US markets also made good headway, with the Nasdaq up 15.3% and the S&P 500 up 10.4%. Both closed the month at record highs.

This dramatic change in momentum can be seen in the overall performance of the IA sectors.

In our analysis, we usually group the non-UK bond fund sectors together, giving us a total of 34 sectors that we monitor. Only two went up in March, but 30 went up in April.

Leading the way was the Technology & Technology Innovation sector, with a 15.6% return. Next was the Asia Pacific excluding Japan sector, up 11.9%, followed closely by the Global Emerging Markets sector, up 11.8%.

Data source: Morningstar. Past performance is not a guide to future performance.

Only four sectors made losses in April – our combined Global & Global Emerging Markets sector, the two UK Gilts sectors, and Healthcare.

Four months into the year, and after a strong recovery in April, 24 out of the 34 sectors are now showing year-to-date gains.

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