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The Zacks Analyst Blog VOO, IVV, QQQ, SPLG and IBIT

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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 - Free Report) , iShares Core S&P 500 ETF (IVV - Free Report) , Invesco QQQ (QQQ - Free Report) , SPDR Portfolio S&P 500 ETF (SPLG - Free Report) and iShares Bitcoin Trust (IBIT - Free Report) .

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.

The iShares Bitcoin Trust alone has amassed over $50 billion in assets, making it the most successful ETF launch in history. With a crypto-friendly administration, the market could witness further innovation in this space.

Active ETFs & Product Innovation

ETF providers continue to innovate with a surge in actively managed ETFs and derivative-based strategies.

Leveraged single-stock ETFs tracking popular names like NVIDIA, Tesla and MicroStrategy have gained traction, along with options-based ETFs designed to deliver defined outcomes or enhanced income.

Bottom Line

The ETF industry has experienced unprecedented growth in 2024, driven by rising markets, strong investor demand, product innovation, and the rise of low-cost, tax-efficient investment vehicles. The future looks even brighter for this dynamic industry.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

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