For Immediate Release
Chicago, IL – January 6, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: Vanguard S&P 500 ETF VOO, iShares Core S&P 500 ETF IVV, iShares Bitcoin Trust IBIT, Vanguard Total Stock Market ETF VTI and Invesco QQQ Trust QQQ.
Here are highlights from Friday’s Analyst Blog:
4 Most-Loved ETFs of 2024
The ETF industry saw explosive growth in 2024, piling up huge assets amid the stock market surge. ETFs across various categories pulled in a record $1.12 trillion in capital last year, almost double the $600 billion of inflows seen in 2022 and 2023 each and topped the previous record of $900 billion set in 2021.
U.S. equity ETFs led the way with $753.4 billion in inflows, followed by inflows of $303.5 billion in fixed-income ETFs and $43.8 billion in currency ETFs. In particular, cryptocurrency ETFs attracted billions of dollars of capital as the approval of spot bitcoin ETFs in January 2024, and Trump's crypto-friendly policies resulted in a new era for the cryptocurrency market. However, most corners of the bond market struggled due to a rise in Treasury yields (read: Top ETF Stories of 2024).
Behind the Stock Market Surge
Wall Street saw a blockbuster 2024. The Nasdaq Composite Index outperformed, rising 28.6%, while the Dow Jones advanced 12.9%. The S&P 500 climbed 23.3% after a 24.2% jump in 2023. This marks two consecutive annual gains above 20% and the best two-year cumulative gain of 53.2% since 1997-98.
The enthusiasm surrounding AI, the rate-cut wave and hopes of growth under President-elect Trump's administration drove the stocks, though geopolitics and global growth slowdown concerns led to risk-off trade. The expansion of AI applications holds the promise of ushering in fresh growth opportunities in the tech sector and beyond (read: 5 Most-Bought Stocks & ETFs of 2024: AI Rules).
The Fed cut interest rates three times in 2024 but signaled a more cautious approach heading into 2025 amid sticky inflation. Lower rates reduce borrowing costs for mortgages, credit cards, and other consumer and business loans. These help businesses expand their operations more easily, resulting in increased profitability. This, in turn, stimulates economic growth and boosts the stock market.
President-elect Donald Trump's win in November also proved a boon for the market, fueling hopes of deregulation, lower corporate tax rates and a focus on the U.S. economy, which has been resilient.
We have detailed the ETFs below:
Vanguard S&P 500 ETF
Vanguard S&P 500 ETF topped the asset flow creation, pulling in $112.6 billion in capital. It tracks the S&P 500 Index and holds 504 stocks in its basket, each accounting for no more than 7.1% of the assets. Vanguard S&P 500 ETF is heavy on the information technology sector, while financials, consumer discretionary, and healthcare round off the next three spots with a double-digit allocation each.
Vanguard S&P 500 ETF charges investors 3 bps in annual fees. It has AUM of $586.2 billion and trades in average daily volume of 4.5 million shares. VOO has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
iShares Core S&P 500 ETF
iShares Core S&P 500 ETF has gathered $84.8 billion in assets. It tracks the S&P 500 Index and holds 503 stocks in its basket, with each accounting for no more than 7.4% of the assets. iShares Core S&P 500 ETF is heavy on the information technology sector, while financials, consumer discretionary and healthcare round off its next three spots with a double-digit allocation each (read: 4 Top Stocks in the S&P 500 ETF That More Than Doubled in 2024).
iShares Core S&P 500 ETF charges investors 3 bps in annual fees and trades in an average daily volume of 4.5 million shares. It has an AUM of $588.2 billion and a Zacks ETF Rank #1 with a Medium risk outlook.
iShares Bitcoin Trust
iShares Bitcoin Trust raked in $37.2 billion in capital in 2024. It seeks to reflect the performance of the price of Bitcoin. It enables investors to access Bitcoin within a traditional brokerage account. The fund charges 25 bps in annual fees from investors. IBIT has AUM of $52.1 billion and trades in an average daily volume of 52 million shares (read: Bitcoin Tops $100K Mark: Will Its ETFs Drive the Next Boom?).
Vanguard Total Stock Market ETF
Vanguard Total Stock Market ETF has accumulated $29.3 billion in capital. It provides exposure to the broader stock market by tracking the CRSP US Total Market Index. Vanguard Total Stock Market ETF holds a large basket of well-diversified 3,624 stocks with key holdings in technology, consumer discretionary, industrials, healthcare and financials.
Vanguard Total Stock Market ETF charges 3 bps in fees per year from investors and trades in an average daily volume of 3 million shares. VTI has amassed $458.2 billion in its asset base and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
Invesco QQQ Trust
Invesco QQQ Trust saw an inflow of $23.6 billion last year. It provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Invesco QQQ is moderately concentrated on the top three firms with at least 8% share each, while other firms hold no more than 6% of the assets.
Invesco QQQ is one of the largest and most popular ETFs in the large-cap space, with an AUM of $321.7 billion and an average daily volume of 26 million shares. QQQ charges investors 20 bps in annual fees and has a Zacks ETF Rank #2 with a Medium risk outlook.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Invesco QQQ (QQQ): ETF Research Reports
Vanguard Total Stock Market ETF (VTI): ETF Research Reports
Vanguard S&P 500 ETF (VOO): ETF Research Reports
iShares Core S&P 500 ETF (IVV): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
