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For Immediate Releases
Chicago, IL – December 9, 2024 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including Vanguard S&P 500 ETF VOO, iShares Core S&P 500 ETF IVV, Invesco QQQ QQQ, SPDR Portfolio S&P 500 ETF SPLG and iShares Bitcoin Trust IBIT.
Here are highlights from Monday’s Analyst Blog:
Record ETF Cash Inflows Power Market Surge
2024 has been an exceptional year for the ETF industry. Year-to-date flows into US-listed ETFs have now surpassed $1 trillion, according to Bloomberg data.
The "Trump trade" sent stocks soaring to their biggest monthly gains of the year in November. ETF flows have accelerated since the election, further propelling major indexes to a series of record highs.
Investor Preference for the ETF Wrapper
ETFs have solidified their position as the investment vehicle of choice for many, thanks to their tax efficiency and low costs. Mutual funds have been losing assets to ETFs at an unprecedented pace.
Many providers are responding by converting mutual funds into ETFs or launching ETF versions of their successful mutual funds. This trend is likely to accelerate in the coming years.
Low-Cost Core ETFs Dominate the Leaderboard
The S&P 500 index is up over 27% this year, recording 55 all-time highs, while the Nasdaq-100 has surged 30%. Low-cost ETFs tracking popular indexes have attracted the lion's share of inflows.
The Vanguard S&P 500 ETF, iShares Core S&P 500 ETF, Invesco QQQ and SPDR Portfolio S&P 500 ETF collectively pulled in approximately $215 billion in new money this year.
US Exceptionalism & the Trump Trade
Robust market gains, especially in equities, pushed US ETF assets past the $10 trillion mark in September. Over the past decade, the S&P 500 index has surged nearly 250%, largely driven by mega-cap tech giants.
By comparison, the MSCI index tracking large- and mid-cap non-US equities has returned just 59%. This divergence continues to widen, and Trump’s pro-growth agenda could further amplify US exceptionalism.
Investors have taken note of this outperformance, increasingly favoring US stock ETFs over their non-US counterparts. In November, 97% of equity inflows went into US equity ETFs, according to State Street.
Blockbuster Bitcoin ETF Launches
A significant highlight this year was the launch of the first spot Bitcoin ETFs, after a decade-long wait. These ETFs have been incredibly popular among investors.