Top ETFs to Watch in 2024 for High Returns

Top ETFs to Watch in 2024 for High Returns

Active Exchange-Traded Funds (ETFs) have seen a surge in popularity among European investors, with numerous fund houses launching new products to meet this demand. Despite their increasing popularity, active ETFs represent only 2% of the total ETF assets in Europe. A Morningstar report notes that there are currently 170 active ETFs available to European investors, including 10 launched in 2024. The performance of these funds can vary significantly based on the currency in which they are denominated. For instance, the highest-performing active ETF returned 22.70% in Japanese yen, while the same product in US dollars returned only 5.81%. The top-performing funds are primarily equity strategies investing across Japan, Europe, the US, emerging markets, and globally. The worst performer to date is JP Morgan Equity Long-Short, which has fallen 22.37% and carries a 0.68% charge.

In the United States, ETFs have also gained traction, with the number of ETFs increasing by over 2,500% from 2003 to 2023 and assets growing by over $8 trillion. These funds offer various strategies to balance volatility and increase returns, including long-and-short strategies and timing retirement plans. Financial data firm TipRanks has highlighted 10 ETFs with high potential gains due to their exposure to highly rated stocks, each fund featuring a Morningstar star rating to measure historical performance relative to peers. Wall Street closed the first half of 2024 at record highs, driven by a resilient economy, an AI boom, and strong corporate earnings. The S&P 500 surged 14.5%, the Nasdaq Composite jumped 18.1%, and the Dow Jones rose 3.8%. The Federal Reserve has hinted at possible rate cuts in the latter half of the year, further fueling market optimism.

Crypto spot ETFs are also making waves in 2024, with top contenders including the BlackRock iShares Bitcoin Trust, Grayscale Bitcoin Trust (GBTC), and CoinShares Physical Ethereum Trust. These ETFs offer varying degrees of exposure to cryptocurrencies, catering to both retail investors and institutional players. Notable investments include a collaboration between ARK Invest and 21Shares, providing a regulated investment avenue for those seeking innovative strategies.

In the second quarter of 2024, the top-performing stock ETFs were HCM Defender 100 Index ETF and Direxion HCM Tactical Enhanced US Equity Strategy ETF, which returned 12.14% and 10.23% respectively. The Fidelity Blue Chip Growth ETF, iShares Russell Top


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