Prime & Flop ETFs of 2024

U.S. shares are on observe to publish one other blockbuster 12 months. The S&P 500 has climbed 24%, marking one in every of its finest consecutive years since 1997 and 1998, and notched 57 document closes. The Dow Jones Industrial and the Nasdaq Composite have risen 13% and 29.8%, respectively.

Whereas geopolitics and international progress slowdown considerations continued to make traders jittery, the adoption of synthetic intelligence (AI), the speed reduce wave and hopes of progress below President-elect Trump’s administration drove shares. The know-how sector has been an outperformer in 2024. Notably, the so-called “Magnificent Seven” shares have been among the many large forces driving the broad market rally and their market-cap valuation surpassed $18 trillion for the primary time ever (learn: Mag 7 ETFs Look Unstoppable Heading Into 2025).

The enlargement of AI purposes holds the promise of ushering in recent progress alternatives within the tech sector and past. Federal Reserve Chair Jerome Powell kicked off the brand new charge cycle period by initiating a 50-basis-point reduce in rates of interest in September after holding it at a 23-year excessive for 14 consecutive months since July 2023. The Fed slashed charges additional in November and December by 25 bps every. The central financial institution envisions solely two charge cuts in 2025, in distinction to 4 projections in September, given the stable labor market and sticky inflation.

Decrease charges scale back borrowing prices for mortgages, bank cards, and different client and enterprise loans. These assist companies develop their operations extra simply, leading to elevated profitability. This, in flip, stimulates financial progress and boosts the inventory market.

President-elect Donald Trump’s win in November additionally proved a boon for the market, fueling hopes of deregulation, decrease company tax charges and a deal with the U.S. financial system, which has been resilient. Bitcoin has been the most important beneficiary of Trump commerce. Expectations for a cryptocurrency-friendly administration powered Bitcoin to a document above $108,000. The cryptocurrency soared 136% this 12 months. Tesla TSLA was one other large winner as a consequence of CEO Elon Musk’s shut ties to Trump.

On the commodity aspect, cocoa, the important thing ingredient of chocolate, has emerged as the highest performer of 2024, beating Bitcoin. The value of cocoa has skyrocketed 180% and reached a document excessive of $12,500 per ton, pushed by antagonistic climate circumstances in key producing nations comparable to Ivory Coast and Ghana, and provide crunch. Treasured metals like gold and silver carried out properly on charge reduce optimism and geopolitical rigidity. Each metals are thought of a retailer of wealth for traders, although the rise within the U.S. greenback saved the costs in verify (learn: Silver ETFs Outshine Gold in 2024: What’s in Store for 2025?).

We’ve got highlighted three ETFs every from the very best and worst-performing zones of 2024.

Greatest ETFs

Grayscale Bitcoin Belief (GBTC) – Up 120.9%

Grayscale Bitcoin Belief is the world’s largest Bitcoin ETF that permits traders to realize publicity to Bitcoin within the type of safety whereas avoiding the challenges of shopping for, storing and safekeeping Bitcoin straight. It owns and passively holds precise Bitcoins by the Custodian, Coinbase Custody. Grayscale Bitcoin Belief has an AUM of $19.7 billion and fees 1.50% in annual charges from traders. It trades in a quantity of 4.2 million shares a day on common (learn: Bitcoin Tops $100K Mark: Will Its ETFs Drive the Next Boom?).

Roundhill Magnificent Seven ETF (MAGS) – Up 67.1%

Roundhill Magnificent Seven ETF is the first-ever ETF that provides traders equal-weight publicity to the “Magnificent Seven” shares. It has amassed $1.8 billion in its asset base and fees 29 bps yearly charges. MAGS trades in a mean every day quantity of 1.4 million shares.

World X MSCI Argentina ETF (ARGT) – Up 60.8%

Argentina’s inventory market has outperformed the U.S. market on the again of financial reforms carried out by president Javier Milei, who took workplace in December 2023, serving to revitalize the beleaguered South American financial system. World X MSCI Argentina ETF affords publicity to the biggest and most liquid securities with publicity to Argentina by monitoring the MSCI All Argentina 25/50 Index. It holds 25 shares in its basket, with key holdings in client discretionary, financials, power and utilities.

World X MSCI Argentina ETF has amassed $903.5 million in its asset base and fees 59 bps in annual charges. It trades in a mean every day quantity of 349,000 shares.

Worst ETFs

Roundhill Hashish ETF (WEED) – Down 48%

After surging on the potential reclassification of marijuana as a much less harmful drug early within the 12 months, hashish shares fell drastically as a consequence of slower progress on the legalization entrance. Hashish is a great distance from being handled like alcohol or tobacco.

Roundhill Hashish ETF is designed to supply concentrated publicity to the biggest U.S. hashish firms. The fund could put money into numerous cannabis-related firms, together with producers and distributors, cannabis-related know-how firms, and extra cannabis-related ancillary companies. It affords exact publicity to 5 main U.S. MSOs. Roundhill Hashish ETF has gathered $3.2 million in its asset base to this point. It fees 40 bps in annual charges and trades in 10,000 shares a day on common.

Breakwave Dry Bulk Delivery ETF (BDRY) – Down 46.2%

Dry bulk delivery shares have been pressured by lackluster international demand because the rebound within the post-COVID demand dissipated. The election of Donald Trump additionally weighed on delivery sentiment. Breakwave Dry Bulk Delivery ETF is the one freight futures ETF solely targeted on the dry bulk delivery market by a portfolio of near-dated freight futures contracts on dry bulk indices. Breakwave Dry Bulk Delivery ETF holds freight futures with a weighted common of roughly three months to expiration, utilizing a mixture of one-to-six-month freight futures primarily based on the prevailing calendar schedule.

Breakwave Dry Bulk Delivery ETF has gathered $31.3 million in AUM and trades in an excellent quantity of about 115,000 shares per day on common. It fees the next annual charge of three.50%.

iShares Lithium Miners and Producers ETF (ILIT) – Down 44.3%

Lithium costs are on observe to say no for a second 12 months as a consequence of ongoing international provide glut and turbulence within the electric-vehicle business. iShares Lithium Miners and Producers ETF affords publicity to international lithium miners and producers who may gain advantage from elevated demand for this restricted useful resource. It holds 31 shares with key holdings in supplies and industrials.

iShares Lithium Miners and Producers ETF has an AUM of $4.1 million and fees 47 bps in annual charges. It trades in a mean every day quantity of 11,000 shares.