Top 30 US ETFs of 2024
Based on the top 30 US ETFs by YTD return as of December 12, 2024, here are some key observations and potential learnings for 2025 portfolio positioning:
- Technology and Innovation Focus: The top-performing ETFs, such as VanEck Digital Transformation ETF (DAPP) and Amplify Transformational Data Sharing ETF (BLOK), highlight the continued strength and investor interest in technology and innovation sectors.
- Thematic and Niche Investments: ETFs like ARK Next Generation Internet ETF (ARKW) and VanEck Video Gaming and eSports ETF (ESPO) indicate a trend towards thematic and niche investments. Investors might consider exploring emerging themes such as AI, blockchain, and digital entertainment for future growth opportunities.
- Momentum and Growth Strategies: Several ETFs, including Invesco DWA Technology Momentum ETF (PTF) and Invesco S&P 500 Momentum ETF (SPMO), are based on momentum strategies. This suggests that momentum investing remains a viable strategy for capturing returns in dynamic market environments.
- Diversification Across Sectors: The list includes ETFs from various sectors, such as energy (Global X MLP & Energy Infrastructure ETF - MLPX), technology (iShares Expanded Tech Sector ETF - IGM), financials (Invesco KBW Bank ETF – KBWB) and communication services (Communication Services Select Sector SPDR Fund – XLC). Diversifying across different sectors can not only help mitigate risks but also help position to capture growth in multiple and unexpected areas.