From Nasdaq: 2025-01-18 07:30:00

In 2024, investors poured a record-breaking $1.1 trillion into ETFs, with over 12,000 options available. The S&P 500’s strong performance and diverse strategies have made ETFs a popular choice, but selecting the best ones for 2025 can be challenging due to varying investment approaches, including leveraged funds unsuitable for long-term investors.

Top-performing ETFs in 2024 included Invesco S&P 500 Momentum, American Century Focused Dynamic Growth, and Hartford Large Cap Growth. These traditional ETFs showed strong performance and could continue their momentum into 2025, attracting investors seeking growth opportunities.

The Invesco S&P 500 Momentum ETF (SPMO) delivered a 46.8% return in 2024 by focusing on large-cap stocks with strong price performance. With an expense ratio of 0.13%, SPMO’s narrow approach excludes the most recent month’s top performers in favor of outperforming stocks, including giants like NVIDIA and Amazon.

The American Century Focused Dynamic Growth ETF (FDG) returned 47.3% in 2024 with its active non-transparent approach, focusing on mid- and large-cap U.S. firms with growth potential. Investors pay a 0.45% expense ratio for FDG’s strategy, which prioritizes profitability and growth prospects over transparency.

The Hartford Large Cap Growth ETF (HFGO) is an actively managed fund with a narrow basket of top U.S. names, particularly in the information technology sector. With an expense ratio of 0.59%, HFGO’s concentrated portfolio of 42 holdings, including Apple and NVIDIA, has returned 41.7% as of January 15, 2025.



Read more at Nasdaq: Top ETFs That Beat the Market in 2024 and Could Do It Again