Many people try to beat the S&P 500 with high-growth ETFs, but is it really that simple? Last year, the S&P 500 would have given you a return of 21%, with the majority coming from the ‘magnificent 7’.
deVere CEO Nigel Green shares his views on the top 5 ETFs that could stand a strong chance of beating the S&P 500 in 2024.
He believes technology trends will continue, which could mean investing in the technology-dominant NASDAQ.
Looking at particular sectors, especially the energy sector, could also be an option. He believes energy will beat the S&P this year, as the world needs energy. Global turmoil in the Middle East, Ukraine, Russia, and the Red Sea, for example, leads to rising oil prices and energy companies that can provide energy, make good profits.
China is another market to watch. China’s stock has performed poorly and is much more speculative, but there are ETFs in Hong Kong, and companies registered there that will gain from China’s recovery. The stock is priced low and has immense potential. Companies like Alibaba are selling at 14x their profit, half of American-based companies. They have enormous potential to gain and beat the S&P.
There is also potential in emerging markets like Brazil and the banking sector. He feels that the banking sector will continue to be profitable, especially the European banking sector.
Before investing, it is always prudent to consult with a financial advisor to ensure that portfolios are suitably diversified to mitigate risk and potential losses.