It has been a good year for the S&P 500. The major U.S. stock market index is up about 16% so far in 2024. But as is so often the case, different sectors have done significantly better — or significantly worse — than the stock market in general.
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The following exchange-traded funds, or ETFs, cover unique corners of Wall Street that have outperformed over the last eight months. These are not leveraged funds that use complex instruments to deliver double or triple the daily returns of a benchmark, however — they play things reasonably straight. Furthermore, they are not tiny ETFs with only a few million bucks in assets under management, but rather moderate- to large-sized funds with at least $100 million under their belt.
There’s risk in these funds, to be sure, but so far in 2024 they have significantly outpaced their peers. Here are 2024’s 10 best-performing ETFs:
| ETF | Expense Ratio | Assets Under Management | Year-to-date Performance* |
| YieldMax NVDA Option Income Strategy ETF (ticker: NVDY) | 1.01% | $972 million | +75% with distributions |
| Grayscale Bitcoin Trust (GBTC) | 1.5% | $13.3 billion | +33.6% |
| Invesco S&P 500 Momentum ETF (SPMO) | 0.13% | $2.1 billion | +31.8% |
| ProShares Bitcoin Strategy ETF (BITO) | 0.95% | $1.9 billion | +30.2% |
| iShares U.S. Insurance ETF (IAK) | 0.39% | $610 million | +29.7% |
| Roundhill Magnificent Seven ETF (MAGS) | 0.29% | $668 million | +29.3% |
| VanEck Semiconductor ETF (SMH) | 0.35% | $22.4 billion | +28.5% |
| Virtus Reaves Utilities ETF (UTES) | 0.49% | $111 million | +27.9% |
| iShares MSCI Global Gold Miners ETF (RING) | 0.39% | $567 million | +26.3% |
| Invesco S&P MidCap Momentum ETF (XMMO) | 0.34% | $3.1 billion | +26.2% |
*As of Sept. 4 close.
YieldMax NVDA Option Income Strategy ETF (NVDY)
Expense ratio: 1.01%, or $101 annually on $10,000 invested Assets under management: $972 million YTD performance: +6%, but a total return of +75% with distributions
The first investment that makes our list is a bit of an oddball in both its structure and in how it generates returns. This ETF is focused on red-hot chipmaker Nvidia Corp. (NVDA), but uses an options strategy to provide yield by selling contracts on the stock. The results have been stellar, with more than $13 in total distributions this year and a current share price of about $23 — good for a roughly 56% payback in distributions alone. Now, past performance is never a guarantee of future returns, and the expensive fee structure coupled with a risky options strategy may not be right for most investors. But you can’t argue with a total return that has delivered roughly four times the gains of the S&P 500 since the start of the year.
Grayscale Bitcoin Trust (GBTC)
Expense ratio: 1.5% Assets under management: $13.3 billion YTD performance: +33.6%
Though far more expensive than some of the other “spot” Bitcoin ETFs approved by the U.S. Securities and Exchange Commission in January of this year, this Grayscale fund moved into the limelight and quickly gobbled up investor assets thanks to a short-term discount in its fee structure early in 2024. Lately, however, the massive expense ratio seems far less attractive — a fact acknowledged by Grayscale itself via a July spinoff of 10% of the fund into a more affordable Grayscale Bitcoin Mini Trust (BTC) that charges 0.15% in annual fees for a massive discount to the old model. Chances are this Bitcoin fund will keep shrinking in assets over the coming months — but right now its performance and current scale make it a top ETF of 2024.
Invesco S&P 500 Momentum ETF (SPMO)
Expense ratio: 0.13% Assets under management: $2.1 billion YTD performance: +31.8%
A sister fund to another soon-to-be-mentioned mid-cap momentum fund, this Invesco offering is focused on the highest momentum large-caps in the S&P 500. There are only about 100 total holdings, giving you the top 20% or so of large U.S. companies that exhibit the best near-term momentum. Right now, leaders include Nvidia, Apple Inc. (AAPL) and Meta Platforms Inc. (META), with just over half of all assets in the tech sector. This is clearly a less diversified approach to the biggest stocks on Wall Street, but the outperformance so far in 2024 may make SPMO worth a look.
ProShares Bitcoin Strategy ETF (BITO)
Expense ratio: 0.95% Assets under management: $1.9 billion YTD performance: +30.2%
The oldest Bitcoin-linked ETF out there, BITO actually invests in Bitcoin futures rather than directly in the cryptocurrency itself. Direct investment in Bitcoin via ETFs was not approved until earlier this year, but this ProShares fund has a richer history with trading data dating back to 2021. Though not a 1-to-1 investment in crypto, the derivatives held by BITO are still tied to the general direction of Bitcoin — and besides, investors who truly want direct exposure to Bitcoin can always just buy the digital asset itself.
iShares U.S. Insurance ETF (IAK)
Expense ratio: 0.39% Assets under management: $610 million YTD performance: +29.7%
Insurance stocks are reliable dividend payers with stable revenue thanks to premiums paid by customers. These profits get doled back out via consistent dividend payments to shareholders. In 2024, however, the sector has been attractive to a wide variety of investors thanks to unique short-term trends. Firstly, the U.S. Federal Reserve began earnestly raising interest rates about three years ago that have lifted the returns that insurance stocks can get on their cash reserves. Also, AI and quantum computing have offered potential for the actuaries at insurance companies to take their calculations to the next level and ensure precise risk management for years to come. With top stocks like Progressive Corp. (PGR) and Hartford Financial Services Group Inc. (HIG) both up more than 40% this year, it’s easy to see why IAK has had a banner year.
Roundhill Magnificent Seven ETF (MAGS)
Expense ratio: 0.29% annually Assets under management: $668 million YTD returns: +29.3%
MAGS is one of the most focused ETFs on Wall Street, with a portfolio of seven “magnificent” industry icons — Nvidia, Google parent Alphabet Inc. (GOOG, GOOGL), Apple, Tesla Inc. (TSLA), Amazon.com Inc. (AMZN), Meta Platforms and Microsoft Corp. (MSFT). You may wonder why you couldn’t just buy those seven stocks directly if you’re so hot on these names … which, by the way, you can. But enough investors are looking for a simple one-stop shop to invest in the leading tech companies that this Roundhill fund has gathered up a significant amount of assets, and it ranks as one of the best-performing ETFs of 2024.
VanEck Semiconductor ETF (SMH)
Expense ratio: 0.35% Assets under management: $22.4 billion YTD performance: +28.5%
Speaking of outperformance in technology stocks: A steady outperformer so far in 2024, SMH is the largest and most liquid exchange-traded fund to play the semiconductor subsegment of the tech industry. Nvidia, Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) and Broadcom Inc. (AVGO) are the three largest positions — and considering this trio has posted gains of between 40% and 140% this calendar year, it’s no surprise the fund has been booming in 2024. There are only about 25 holdings, however, and they all tend to move in the same general direction — so keep in mind the dramatic outperformance could turn into equally dramatic declines if the semiconductor industry as a whole rolls back.
Virtus Reaves Utilities ETF (UTES)
Expense ratio: 0.49% Assets under management: $111 million YTD performance: +27.9%
Much like insurers, it’s not particularly common for utility stocks to go down as outperformers given their lower volatility profile. It’s even rarer for that to happen in a “risk on” market environment like we’ve seen in 2024 with tech and crypto stocks booming. However, this small utility sector fund has benefited from its weighting towards two big standouts — NextEra Energy Inc. (NEE) and Constellation Energy Corp. (CEG) — that are up more than 30% and 50%, respectively, since the end of last year. Almost 30% of the entire portfolio is in these two leading utility stocks, which have unique strengths thanks to the integration of AI into their grid management or their position with alternative energy assets.
[READ: 8 Top-Rated Income Funds to Buy in 2024]
iShares MSCI Global Gold Miners ETF (RING)
Expense ratio: 0.39% annually Assets under management: $567 million YTD returns: +26.3%
Gold prices have risen about 20% so far in 2024, outperforming even the strong gains for the stock market in the same period. It should come as no surprise then that this leading gold mining stock ETF has outperformed, too. The fund only has about 25% of assets in the U.S. as firms in Canada and South Africa are closer to local gold deposits in these regions. RING comprises about 35 total positions, including leading international gold mining stocks Newmont Corp. (NEM) Agnico Eagle Mines Ltd. (AEM) and Barrick Gold Corp. (ABX), among others, and represents a simple way to gain exposure to gold without buying physical bullion.
Invesco S&P MidCap Momentum ETF (XMMO)
Expense ratio: 0.34% Assets under management: $3.1 billion YTD performance: +26.3%
XMMO offers exposure to mid-sized companies that are punching above their weight with better near-term momentum than their peers. The fund starts with the S&P Midcap 400 Index, the next 400 stocks that come after the top end of the market populates its sister S&P 500 benchmark, and then focuses in on the top 20% of stocks based on quantitative rankings. That gives you about 80 total holdings, with industrials making up the largest sector at about 40% of the fund. There’s also a good share of tech and consumer stocks, but not many utility or real estate picks as these sectors tend to be a bit on the sleepier side. Investors should be warned that even high-flying stocks can stumble, but recent outperformance hints XMMO may continue to be a strong investment in 2024.
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10 Best-Performing ETFs of 2024 originally appeared on usnews.com
Update 09/05/24: This story was previously published at an earlier date and has been updated with new information.
