Top ETFs of the first quarter 2024

19 April 2024 - 15:00

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Let’s discover together the best markets of the first quarter of 2024 and the related ETFs.

Top ETFs of the first quarter 2024

In the analysis of the financial markets of first quarter of 2024, a trend emerges of great interest for investors seeking return opportunities in a constantly evolving global context. In particular, two categories have attracted attention for their exceptional returns: Equity ETFs focused on Turkey and Vietnam markets. These geographic areas have benefited from favorable economic conditions which have led to significantly superior performance compared to other asset classes.

Emerging markets: Türkiye and Vietnam in focus

Turkey, in particular, continued to show surprising resilience, with its stock market recording a 14.5% growth. This development has been supported by a number of positive economic factors and strong international demand for its exports. The Istanbul Stock Exchange benefited from a steady flow of investments which fueled the stock rally for the fourth consecutive year.

On the other hand, Vietnam stood out with a increase of 13.8%, mainly driven by the expansion of the technology sector. This country, known for its rapid economic growth and for being a major global manufacturing hub, has seen its technology companies gain traction internationally, attracting investor interest in the Vietnamese stock market.

The success of US ETFs: The push of the "Magnificent Seven"

Across the US markets, ETFs focused on large cap stocks and growth strategies stood out, with returns of 13.2% and 12.2% respectively. This phenomenon reflects broad interest in companies well-positioned to capitalize on emerging technology trends and digital transformation. The contribution of the so-called "Magnificent Seven", a group of leading companies in the technology sector, has been instrumental in guiding market dynamics. While some of these companies have shown mixed performance, their overall impact on investment strategies has been irrefutable, highlighting the importance of carefully selecting portfolio companies to maximize returns.

The Best Performances by Category: A Detailed Analysis

In searching for the best funds and ETFs for Q1 2024, it is critical to examine the categories that have exceeded expectations, offering investors notable returns. Among these, funds that invest in frontier markets stand out, particularly those focused on the Turkish and Vietnamese markets. Templeton Frontier Markets, for example, recorded an increase of 18.09%, positioning itself as a leader in its category. This fund has benefited from the economic expansion of these countries, demonstrating how a diversified approach to less traditional markets can lead to significant returns.

In the United States, the iShares Edge MSCI USA Momentum Factor ETF showed exceptional performance, with a increase of 22.94%. This result highlights the importance of momentum-based stock selection, a strategy that rewards stocks with the greatest short-term price growth. This strategy made it possible to capitalize on the growth dynamics of large capitalizations, led in particular by the "Magnificent Seven".

iShares Edge MSCI USA Momentum Factor ETF

Looking at the exceptional results of the first quarter of 2024, the iShares Edge MSCI USA Momentum Factor ETF deserves particular attention, a product that has been able to excel thanks to a momentum-based strategy. This ETF has capitalized on the growth dynamics of US stocks, highlighting how careful selection based on recent performance can lead to significant results. The ETF, which aims to track the MSCI USA Momentum Index, posted an impressive 22.94% increase, a result that highlights the effectiveness of the momentum approach in a period of marked volatility and market growth.

The investment strategy of the iShares Edge MSCI USA Momentum Factor ETF focuses on stocks that have shown superior price performance over the medium term, assuming that this upward trend can continue into the foreseeable future.

This approach has allowed the ETF to particularly benefit from the positive swings of the "Magnificent Seven", technology companies that have dominated the market with their innovations and exponential growth. The choice to invest in companies with strong momentum has therefore generated notable returns for investors, demonstrating the effectiveness of this strategy in a market context favorable to technological innovation.

The management of the iShares Edge MSCI USA Momentum Factor ETF reflects meticulous attention to the composition of the benchmark index. With a total expense ratio (TER) of 0.20% per annum, it is positioned as one of the cheapest ETFs in its category, offering investors efficient access to the US stock market at a low cost. Furthermore, the dividend accumulation policy automatically reinvests the proceeds, contributing to the compound growth of the value of the investment over time.

The analysis of the assets under management and the structure of this ETF reveals a careful approach to diversification and risk control. Managing assets of approximately €325 million and utilizing optimized physical replication, the iShares Edge MSCI USA Momentum Factor ETF demonstrates a balance between the pursuit of performance and risk mitigation.

The information and considerations contained in this article should not be used as the sole and principal basis on which to make investment decisions. The reader retains full freedom in his own investment choices and full responsibility in making them, since he alone knows his risk appetite and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings.

Original article published on Italy 2024-04-18 16:44:22. Original title: Ecco i migliori ETF del primo trimestre 2024


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