Top & Flop ETFs of 2024: A Year of Mixed Fortunes for Investors
“Top & Flop ETFs of 2024” The U.S. stock market delivered another stellar performance in 2024, with the S&P 500 climbing 24%, marking one of its best consecutive years since 1997-1998. Meanwhile, the Dow Jones Industrial Average and Nasdaq Composite rose 13% and 29.8%, respectively. Despite global uncertainties like geopolitical tensions and slower economic growth, factors such as the rapid adoption of artificial intelligence (AI), interest rate cuts, and optimism surrounding President-elect Donald Trump’s administration fueled investor confidence.
The technology sector outshined others, with the “Magnificent Seven” stocks driving the market rally, reaching a combined market capitalization of over $18 trillion for the first time. Additionally, the Federal Reserve’s rate cuts and expectations of economic growth under a pro-business administration created favorable conditions for the stock market.
Let’s explore the top-performing and worst-performing ETFs of 2024 to better understand market dynamics.
Top-Performing ETFs of 2024
- Grayscale Bitcoin Trust (GBTC)
Performance: Up 120.9%
Why It Soared: Bitcoin saw unprecedented gains, breaking the $108,000 mark due to expectations of a cryptocurrency-friendly administration under Trump. The Grayscale Bitcoin Trust offers exposure to Bitcoin in a secure format, bypassing the complexities of direct investment.
Key Details:
AUM: $19.7 billion
Annual Fees: 1.50%
Average Daily Volume: 4.2 million shares
- Roundhill Magnificent Seven ETF (MAGS)
Performance: Up 67.1%
Why It Soared: This ETF provides equal-weight exposure to the “Magnificent Seven” tech giants, which were key drivers of 2024‘s market rally.
Key Details:
AUM: $1.8 billion
Annual Fees: 0.29%
Average Daily Volume: 1.4 million shares
- Global X MSCI Argentina ETF (ARGT)
Performance: Up 60.8%
Why It Soared: Economic reforms by Argentine President Javier Milei revitalized the South American economy, boosting investor confidence. This ETF tracks Argentina’s most liquid stocks, with significant exposure to consumer discretionary, financials, energy, and utilities.
Key Details:
AUM: $903.5 million
Annual Fees: 0.59%
Average Daily Volume: 349,000 shares
Worst-Performing ETFs of 2024
- Roundhill Cannabis ETF (WEED)
Performance: Down 48%
Why It Fell: Initial optimism around marijuana reclassification faded due to slow progress on legalization, dragging cannabis stocks lower.
Key Details:
AUM: $3.2 million
Annual Fees: 0.40%
Average Daily Volume: 10,000 shares
- Breakwave Dry Bulk Shipping ETF (BDRY)
Performance: Down 46.2%
Why It Fell: Weak global demand and diminished post-COVID recovery impacted dry bulk shipping. Additionally, Trump’s election dampened sentiment in the shipping sector.
Key Details:
AUM: $31.3 million
Annual Fees: 3.50%
Average Daily Volume: 115,000 shares
- iShares Lithium Miners and Producers ETF (ILIT)
Performance: Down 44.3%
Why It Fell: A global lithium supply glut and turbulence in the electric vehicle (EV) industry led to a second consecutive year of price declines.
Key Details:
AUM: $4.1 million
Annual Fees: 0.47%
Average Daily Volume: 11,000 shares
Key Market Trends of 2024
- AI Revolution:
AI adoption remained a key growth driver for tech stocks, promising transformative opportunities across industries.
- Interest Rate Cuts:
The Federal Reserve reduced interest rates three times in 2024, creating favorable borrowing conditions that boosted market sentiment.
- Commodity Surge:
Cocoa prices skyrocketed 180%, reaching a record $12,500 per ton, driven by adverse weather conditions in major producing nations like Ivory Coast and Ghana. Gold and silver also performed well, benefiting from geopolitical tensions and rate cut optimism.
What to Watch in 2025
As we move into 2025, investors should monitor key themes like:
Further rate cuts by the Federal Reserve
Continued expansion of AI applications
Shifts in cryptocurrency and commodity markets
Policy changes under President Trump’s administration
Stay informed with the latest insights and trends in the ETF market by subscribing to our free newsletter.
Optimize Your Portfolio
To stay ahead of market trends, explore our comprehensive ETF screener and analysis tools designed to help you make informed investment decisions.
- What are ETFs?
Exchange-Traded Funds (ETFs) are investment funds traded on stock exchanges, similar to stocks. They hold a collection of assets such as stocks, commodities, or bonds and typically track an underlying index.
- Why did Bitcoin-focused ETFs perform so well in 2024?
Bitcoin surged past $108,000 due to expectations of a cryptocurrency-friendly administration under President-elect Donald Trump, alongside growing adoption and institutional interest.
- What caused the underperformance of cannabis ETFs?
Cannabis ETFs like Roundhill Cannabis ETF (WEED) suffered due to slow progress in legalization efforts and weak sentiment in the sector, despite early-year optimism.
- How did interest rate cuts impact ETFs?
The Federal Reserve’s multiple rate cuts in 2024 lowered borrowing costs, stimulated economic growth, and boosted market performance, particularly in sectors like technology and consumer discretionary.
- What made cocoa the best-performing commodity of 2024?
Adverse weather conditions in key cocoa-producing nations like Ivory Coast and Ghana created a supply crunch, driving prices up by 180%.
- Should I invest in ETFs in 2025?
ETFs remain a popular choice for diversification and long-term growth. However, investors should consider market trends, interest rate policies, and sector performance before making decisions.
- Where can I learn more about top-performing ETFs?
Stay updated with ETF market insights through our free newsletter, detailed screener tools, and expert analysis to help guide your investment strategy.