ETFs
The hottest ETFs for the first half of 2024 – July 3, 2024
Stocks continue their upward trend after a stellar first half, fueled by enthusiasm for AI, a resilient U.S. economy, improving corporate profits and signs of slowing inflation.
The S&P 500 is up about 15% and has hit 31 record highs, while the Nasdaq Composite is up 19% in the first half of 2024.
At the beginning of the year, many experts predicted a broadening of the rally, but that did not happen. In fact, NVIDIA (NVDA Quick QuoteNVDA – Free report) accounted for about a third of the S&P 500’s gains in 2024.
NVIDIA’s surge has encouraged many to make leveraged bets on the stock. The GraniteShares 2x Long NVDA Daily ETF (NVDL Quick QuoteNVDL – Free report) started the year with about $200 million in assets and now has nearly $5 billion in assets under management.
The approval of Bitcoin spot ETFs marked a monumental event for digital assets and the ETF industry. Investor adoption broke records, and the iShares Bitcoin Trust (IBIT Quick Quote)I BITE – Free report) has dethroned the Grayscale Bitcoin Trust (GBTC Quick QuoteGBTC – Free report) to become the world’s largest Bitcoin fund.
GBTC, however, has benefited not only from the cryptocurrency’s rise, but also from the disappearance of its discount to its net asset value. It operated more like a closed-end fund prior to its conversion, and often traded at a significant discount or premium to its net asset value.
NVIDIA’s incredible rally has boosted semiconductor ETFs. While other tech giants have also gained, technology and momentum-focused funds have performed quite well.
To learn more about the VanEck Semiconductor ETF (SMH Quick QuoteSMH – Free report) , ETF Roundhill Magnificent Seven (MAGS Quick QuoteMAGS – Free report) and the Invesco S&P 500 Momentum ETF (SPMO Quick Quote)SPMO – Free report), please watch the short video above.