Your 10 most-tipped ETFs for 2024 (Q1 performance update)

We first asked the Livewire audience for their top ETF tips for 2023 in late 2022. That top 10 was a largely balanced list, featuring broad-based indices such as the ASX200, S&P 500, and NASDAQ 100 alongside a few thematic choices.

Fast forward to late 2023, and again, we asked the Livewire audience and the Market Index audience for their top ETFs heading into 2024. The results (available in the table below) were largely consistent with the prior year but with two new additions focused on AI and uranium (two hot themes at the time). 

Now that the March quarter is complete, we thought we'd check in to see how these ETFs have been performing - totally mindful that a quarter of performance is a small sample size, and performance returns should be considered over longer timeframes. The top-tipped ETFs are arranged in descending performance order below.  

Please note: This information in this wire is not, nor is it intended to be, a set of recommendations. Please do your own research and seek advice from a professional. Whilst quarterly performance data might make for interesting reading, for many of these products, performance should be considered over longer periods. Past performance is not a reliable indicator of future return. 

#1. Global X FANG+ ETF (ASX: FANG)
Quarterly Performance: 20.50%

FANG aims to invest in companies at the cutting edge of next-generation technology, including household names and newcomers. This ETF has 10 holdings, including all of the Magnificent Seven and a couple of extras, such as Snowflake Inc.

Comment: It is hardly a surprise that FANG is at the top of the board, with the Magnificant Seven continuing their dominance in what have been rising equity markets. There are many questions being asked of that cohort, however, as can be seen in the wires below;

• The Magnificent Seven stumble: cracks appear in market titans
• Could the Magnificent Seven actually be undervalued?
• The impact of tech’s ‘Magnificent Seven’
  

#2. VanEck MSCI International Quality ETF (ASX: QUAL)
Quarterly Performance: 16.91%

QUAL gives investors exposure to a diversified portfolio of quality international companies listed on exchanges in developed markets around the world (ex Australia).

Comment: It's nice to see QUAL towards the top of the list - proof that investors don't always need to be chasing the latest, hottest thing to get solid returns. 

#3. iShares S&P 500 ETF (ASX: IVV)
Quarterly Performance: 14.85%

IVV offers exposure to the largest 500 US companies by market capitalisation, seeking to replicate the S&P 500 index. The Magnificent Seven represents 29% of the S&P 500 so it has also benefitted from the AI-boom.

Comment: More proof that you don't always need to be chasing themes to generate healthy returns. This would be music to Warren Buffett's ears - In 2007, Buffett bet a million dollars that over the course of a decade, a simple S&P 500 index fund would outperform a basket of hand-picked hedge funds. So, what happened?

Buffett won the bet by the proverbial country mile. 

The S&P 500 index fund he selected delivered a total gain of 125.8% during the decade, while the five funds-of-funds reported respective gains of 21.7%, 42.3%, 87.7%, 2.8% and 27.0% during the same period.

#4. Betashares Nasdaq 100 ETF (ASX: NDQ)
Quarterly Performance: 13.67%

NDQ offers exposure to 100 of the largest non-financial companies listed on the US-based NASDAQ index by tracking the performance of the NASDAQ 100 Index. The Magnificent Seven account for 49.2% of the NASDAQ 100, so it’s hardly a surprise this ETF has been a popular choice, as well as a top-performer.

Comment: Another simple, low-cost, index-hugging ETF that has delivered exceptional performance. In another era, all of those adjectives might have been considered insults to a financial product. How times have changed. 

#5. Global X Physical Gold (ASX: GOLD)
Quarterly Performance: 10.51%

The world’s oldest physical gold ETF invests in physical gold bullion, with each unit of investment representing a 0.037956936 fine troy ounce as at 19 January 2024.

Comment: Gold has been one of the hot commodities in recent months, setting multiple record highs amid geopolitical uncertainty and changing interest rate expectations. Many are calling for the rally to continue, as seen below; 

• The time for gold is now, it's just a matter of how...
• Katana's top 2 gold stocks
  

The best of the rest...