4 Trends to Watch for in 2024

From Nasdaq:

1. In 2024, ETF investors need to consider pricing power, which involves raising prices while maintaining or growing demand. This strategy can help companies increase revenue and margins in the face of higher inflationary costs. Consumer staples and luxury goods ETFs, as well as the Invesco Bloomberg Pricing Power ETF (POWA), could benefit from this trend.

2. Labor issues may persist in 2024, particularly in industries with unionized workers. While strikes can disrupt certain companies, their impact on ETFs is usually modest. Unlikely to lose profits from wage increases, companies like Tesla and Honda are less affected by labor disruptions, benefiting ETFs like the Global X Autonomous & Electric Vehicles ETF (DRIV).

3. Small-cap stocks provide diversification from large-cap equities, offering strength and undervalued potential. With the SPDR Portfolio S&P 600 Small Cap ETF (SPSM) outperforming the S&P 500 ETF Trust (SPY) in the fourth quarter of 2023, investors should consider a balanced allocation to avoid overallocation to popular large-cap stocks.

4. In the crypto market, the potential launch of a spot bitcoin ETF could bring wider access and legitimacy, leading to wider acceptance and greater adoption. Investors can expect prices of crypto equity ETFs to appreciate, particularly after the halving event expected in April 2024. The Valkyrie Bitcoin Miners ETF (WGMI) and others have already shown significant gains in 2023.



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