The primary asset allocation consideration for 2024 revolves around the potential for interest rate cuts. Investors must weigh the extent to which central banks may proceed with cuts or determine whether any reductions will be implemented.
In this setting, fixed income is poised for success, but investors must carefully choose their position along the yield curve.
Decisions of significance also include assessing whether the ‘magnificent seven’ will sustain their impact on US equity returns and identifying potential growth opportunities in emerging markets.
With this in mind, Finbold utilized artificial intelligence (AI), precisely Google Bard, to provide top exchange-traded funds (ETF) picks for 2024.
Bard emphasizes that there is no universally optimal ETF that suits every investor, as the most suitable choice is contingent on individual investment goals, risk tolerance, and time horizon. Nonetheless, it provided recommendations based on prevailing market trends and analyst projections for 2024.
VanEck Morningstar Wide Moat ETF (BATS: MOAT)
VanEck Morningstar Wide Moat ETF (BATS: MOAT) concentrates on enterprises possessing robust competitive advantages, typically safeguarded by brand recognition, patents, or network effects.
MOAT ETF suggestion. Source: Google Bard and Finbold
Referred to as “moat” companies, these entities exhibit a propensity for consistent earnings expansion and have historically outperformed the broader market. Consequently, MOAT emerges as a prudent selection for long-term investors aiming for enduring and stable growth in their investment portfolios.
MOAT is trading at $85.11, a 0.15% increase in the past 24 hours, representing a further increase of 0.63% over the past 5 trading sessions. Its YTD increase stands at 30.42%.
MOAT ETF YTD price chart. Source: Finbold
SoFi Select 500 ETF (NYSEARCA: SFY)
The SoFi Select 500 ETF (NYSEARCA: SFY) employs a weighting methodology that considers the growth rates of its holdings, thereby favoring businesses anticipated to surpass market performance.
SFY ETF suggestion. Source: Google Bard and Finbold
In the event of a resurgence in growth stocks in 2024, attributed to reduced interest rates, SFY stands poised to experience disproportionate benefits potentially.
At the time of press, SFY was trading at $17.02, experiencing an increase of 0.12% from the previous close, contrary to the loss of -0.18% in the past 5 sessions. Overall, this asset has experienced a YTD growth of 29.23%.
SFY ETF YTD price chart. Source: Finbold
Motley Fool Next Index ETF (NYSEARCA: TMFX)
The Motley Fool Next Index ETF (NYSEARCA: TMFX) is designed to identify innovative companies disrupting their respective industries, such as those involved in AI, robotics, and biotech.
These enterprises may have substantial growth, albeit accompanied by elevated risk. TMFX is well-suited for investors with a high-risk tolerance who seek exposure to sectors oriented toward the future.
TMFX is currently trading at $16.96, representing an increase of 0.24% from the previous closure, which adds to the gains of 3.23% over the last 5 trading sessions. This ETF has added +18.59% to its value YTD as per the latest information obtained on December 28.
TMFX ETF YTD price chart. Source: Finbold
Invesco KBW High Dividend Yield Financial ETF (NASDAQGM: KBWD)
The Invesco KBW High Dividend Yield Financial ETF (NASDAQGM: KBWD) is focused on financial entities distinguished by their elevated dividend yields.
If interest rates remain low in 2024, financial stocks could experience heightened attractiveness, potentially resulting in an appreciation of KBWD’s value and offering a consistent income stream through dividend payouts.
KBWD is trading at $16.12 after an increase of 0.37% from the previous closure and a 1.84% increase over the past 5 trading sessions. This ETF has managed to add 2.29% to its value over the past 365 days.
KBWD ETF YTD price chart. Source: Finbold
First Trust Energy AlphaDEX Fund (NYSEARCA: FXN)
The First Trust Energy AlphaDEX Fund (NYSEARCA: FXN) strategically focuses on high-quality energy companies with robust fundamentals and favorable valuations.
Given the historical correlation between energy stocks and ascending commodity prices, the potential for an appreciation in the value of FXN exists. Furthermore, certain carefully chosen companies within the fund present attractive dividend yields, offering investors income and the prospect of capital appreciation.
At the time of press, FXN was trading at $16.97, noting a decrease of -0.53% in its value from the previous closure on December 27 and losing -0.70% in the last 5 trading sessions. This asset has depreciated by -0.05% YTD.
FXN ETF YTF price chart. Source: Finbold
Investors need to remember that these outlined scenarios are speculative, and the realized performance of these ETFs will hinge on diverse market variables.
Before making any investment decisions, it is advisable to engage in thorough individual research, considering personal risk tolerance and investment objectives.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
