HomeMost PopularBest Performing ETFs of 2024: Potential Candidates for Continued Market Outperformance

Best Performing ETFs of 2024: Potential Candidates for Continued Market Outperformance

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Top ETFs of 2024: Strong Performers for Savvy Investors

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2024 proved to be an exceptional year for exchange-traded funds (ETFs), as investors invested a record-breaking $1.1 trillion in new assets. With over 12,000 ETF options now available, investors have plenty of choices.

The impressive performance of the S&P 500 has certainly attracted attention to ETFs. However, the diverse array of strategies and asset classes also plays a significant role in their popularity. Finding the “best” ETFs for 2024 can be challenging, as some top-performing options leverage daily resets, which may not suit long-term investors.

Among traditional ETFs that made a mark in 2024 are the Invesco S&P 500 Momentum ETF (NYSEARCA: SPMO), the American Century Focused Dynamic Growth ETF (NYSEARCA: FDG), and the Hartford Large Cap Growth ETF (BATS: HFGO). These funds have shown strong potential for continued success in 2025.

Invesco S&P 500 Momentum ETF: Leading Large-Cap Performer

As of January 15, 2025, SPMO recorded a one-year return of 46.8%, surpassing the broader market. This factor ETF adopts a simple strategy: focus on large-cap stocks that have demonstrated strong price performance recently. It aims to select 100 S&P stocks that have outperformed peers in the previous year, excluding the last month, while also considering volatility.

SPMO favors major players like NVIDIA Corp. (NASDAQ: NVDA) and Amazon.com Inc. (NASDAQ: AMZN). Therefore, investors holding significant shares in these companies should check SPMO’s holdings to avoid overexposure. With an expense ratio of 0.13%, it presents a compelling choice for many portfolios.

American Century Focused Dynamic Growth ETF: Unconventional Success

FDG achieved a return of 47.3% leading up to January 15, 2025, showcasing its effectiveness. This ETF functions as an active non-transparent fund, meaning that it does not have to disclose holdings as frequently as traditional funds. Consequently, its higher expense ratio of 0.45% reflects this active management approach.

FDG targets mid- and large-cap U.S. companies with strong growth potential. Although it started in 2020, its recent performance might encourage new investments in the upcoming year.

Hartford Large Cap Growth ETF: Focused on Top Growth Stocks

HFGO, which became fully transparent in July 2024, also follows a straightforward principle: select growth stocks that show early signs of improving fundamentals. This ETF predominantly holds information technology stocks while focusing on large-cap companies. Even though holdings are public, the specific selection criteria remain less clear to investors.

HFGO consists of only 42 holdings as of January 15, 2025, making it highly concentrated. Its largest investments—Apple and NVIDIA—account for about 25% of its total assets, making this fund ideal for those looking to access some of the top players in the U.S. stock market.

With an expense ratio of 0.59%, HFGO’s fees are above many rivals, but its strong performance may justify the cost. As of January 15, 2025, HFGO recorded a return of 41.7% over the past year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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