Top Investment Themes and Trends for 2024
2024 was a fantastic year for investments, with the S&P 500 TR Index up over 28%! Plus, U.S. ETF inflows hit over $1 trillion for the first time ever. Can you believe it? Actively managed ETFs made up about a third of that money.
But wait, there’s more! In 2024, we saw the launch of the first crypto ETFs in the U.S. Exciting, right? In January, we got bitcoin ETFs, followed by ethereum ETFs in May. Now, less than a year later, bitcoin ETFs hold a whopping $119.4 billion, while ethereum ETFs have about $9 billion in assets. The tactical blend ETFs, that mix bitcoin and ethereum, or add a sprinkle of other assets like Treasuries or gold, have more than $200 million in total assets. It’s crazy how much this space is growing and changing.
Let’s take a look at some of the top crypto ETFs of the year. The iShares Bitcoin Trust ETF (IBIT) leads the pack with $53.86 billion in assets. And for ethereum, the Grayscale Ethereum Trust ETF (ETHE) stands out with $5.59 billion in assets.
Moving on to the defense technology sector, which had a big year too. Defense tech became a hot investment theme as tensions rose worldwide. Global defense spending hit a record high of $2.4 trillion in 2024. Wow, that’s a lot of money! Everyone seems to be focusing on modernizing equipment and innovating defense tech, especially in areas like cyber defense, drones, robotics, and artificial intelligence.
The Global X Defense Tech ETF (SHLD) had an outstanding performance, up nearly 37% year to date. That’s impressive! And their top holding is Palantir, an AI defense solution provider.
Lastly, let’s talk about automation, AI, and reshoring. These themes really took off in 2024, especially with the anticipation of a new administration. With a focus on shifting manufacturing back home, automation through robotics and AI will be key. ETFs like the Tema American Reshoring ETF (RSHO) and the Franklin Intelligent Machines ETF (IQM) saw significant growth and returns this year. It’s exciting to see how these trends are shaping the investment landscape.
