Introduction
Are you wondering which ETFs are the best to invest in in 2024? The answer depends on your personal goals, risk profile and investment horizon. But if you need some inspiration, we have selected the 6 top ETFs of De Belgische Belegger for you. We believe these ETFs have a great potential to grow in the next years, thanks to the innovative and forward-looking themes that they cover.
Investing in ETFs is a popular way to diversify your portfolio and benefit from the growth of different sectors, regions and themes. ETFs are funds that track a basket of stocks or other assets, such as an index, a sector or a theme. ETFs are easy to trade on the stock exchange, have low costs and offer a great diversification.
Here are our favorite ETFs to invest in in 2024:
- Xtrackers Future Mobility UCITS ETF 1C (ticker: XMOV)
- L&G Hydrogen Economy UCITS ETF USD Acc (ticker: HTMW)
- Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C (ticker: XAIX)
- Amundi Index FTSE EPRA NAREIT Global UCITS ETF DR (ticker: EPRU)
- Xtrackers MSCI World Value Factor UCITS ETF 1C (ticker: XDEV)
- iShares STOXX Global Select Dividend 100 UCITS ETF (DE) (ticker: ISPA)
Curious about the reason why we chose these ETFs? Let’s take a closer look at the ETFs!
Xtrackers Future Mobility UCITS ETF 1C (ticker: XMOV)
The first ETF that we recommend is the Xtrackers Future Mobility UCITS ETF 1C (ticker: XMOV). This ETF follows the Solactive Future Mobility Index, which consists of companies that are active in the sectors of electric vehicles, autonomous driving, connectivity and mobility services. Think for example of Tesla, Alphabet, Uber and Nio.
Why do we find this ETF interesting? Because we believe that the mobility sector will undergo a huge transformation in the coming years, thanks to the technological progress, the changing consumer preferences and the environmental challenges. Electric vehicles will gain more and more market share at the expense of traditional combustion engines, autonomous driving will increase the safety and comfort of the drivers, and mobility services will offer new forms of transport.
This ETF therefore offers you the opportunity to benefit from these megatrends, which are expected to have a strong growth in the coming years. The ETF achieved an annual return of 28.71% in 2023 and has an ongoing charges ratio of 0.35%.
L&G Hydrogen Economy UCITS ETF USD Acc (ticker: HTMW)
The second ETF that we recommend is the L&G Hydrogen Economy UCITS ETF USD Acc (ticker: HTMW). This ETF follows the L&G Hydrogen Economy Index, which consists of companies that are involved in the production, distribution or use of hydrogen as an energy source. Think of Plug Power, Ballard Power Systems, Linde and Air Liquide, for example.
Why do we find this ETF interesting? Because we believe that hydrogen will play a crucial role in the energy transition to a low-carbon economy. Hydrogen is a clean and sustainable fuel, which can be used for various applications, such as transport, industry and electricity generation. Hydrogen has the potential to replace fossil fuels and reduce greenhouse gas emissions.
This ETF therefore offers you the opportunity to invest in a sector that still has a lot of growth potential in the future, thanks to the increasing demand for hydrogen and the decreasing production costs. The ETF achieved an annual return of 23.15% in 2023 and has an ongoing charge ratio of 0.49%.
Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C (ticker: XAIX)
The third ETF that we recommend is the Xtrackers Artificial Intelligence & Big Data UCITS ETF 1C (ticker: XAIX). This ETF follows the STOXX® AI Global Artificial Intelligence ADRC Index, which consists of companies that use artificial intelligence (AI) and big data to improve their products, services or processes. Think of Amazon, Microsoft, Nvidia and Shopify, for example.
Why do we find this ETF interesting? Because we believe that AI and big data are the driving forces behind the digital revolution, which will affect all aspects of our lives and our economy. AI and big data enable companies to make better decisions, work more efficiently, be more innovative and create more value for their customers. AI and big data have the potential to transform every sector, from health care to finance, from e-commerce to entertainment.
This ETF therefore offers you the opportunity to invest in a sector that still has a huge potential to grow in the future, thanks to the exponential increase of data and the rapid progress of AI technologies. The ETF achieved an annual return of 19.82% in 2023 and has an ongoing charge ratio of 0.35%. Be careful with your entry point, the sector is currently very highly valued. Personally, I would wait for a good entry point.
Amundi Index FTSE EPRA NAREIT Global UCITS ETF DR (ticker: EPRU)
The fourth ETF that we recommend is the Amundi Index FTSE EPRA NAREIT Global UCITS ETF DR (ticker: EPRU). This ETF follows the FTSE EPRA Nareit Developed Index, which consists of real estate stocks from developed countries. Think of Prologis, American Tower, Vonovia and Unibail-Rodamco-Westfield, for example.
Why do we find this ETF interesting? Because we believe that real estate plays an important role in any diversified portfolio, as a source of income, stability and protection against inflation. Real estate also provides exposure to different segments, such as residential, commercial, industrial and logistics, each with their own dynamics.
This ETF therefore gives you the opportunity to invest in a sector that has taken a hit on the stock market due to the rising interest rate in 2023, but that has also become more attractive in terms of valuation. The ETF achieved an annual return of -2.34% in 2023 and has an ongoing charge ratio of 0.24%. The ETF also has a dividend yield of 3.17%, which is higher than the average of the market.
Xtrackers MSCI World Value Factor UCITS ETF 1C (ticker: XDEV)
The fifth ETF that we recommend is the Xtrackers MSCI World Value Factor UCITS ETF 1C (ticker: XDEV). This ETF follows the MSCI World Enhanced Value Index, which consists of stocks from developed countries that have an attractive valuation compared to their sector peers, based on criteria such as book value, earnings or dividend. Think of Berkshire Hathaway, Exxon Mobil, Pfizer and HSBC, for example.
Why do we find this ETF interesting? Because we believe that 2024 will be the year when value stocks will shine again, after years of lagging behind growth stocks. Value stocks are stocks that are cheap in relation to their intrinsic value or their historical averages. Value stocks usually perform better in a period of economic recovery, interest rate hike and rising consumer confidence.
This ETF therefore gives you the opportunity to invest in a factor that has delivered a higher return than the market in the long term, but that is currently undervalued compared to other factors. The ETF achieved an annual return of 14.27% in 2023 and has an ongoing charge ratio of 0.25%.
iShares STOXX Global Select Dividend 100 UCITS ETF (DE) (ticker: ISPA)
The sixth and last ETF that we recommend is the iShares STOXX Global Select Dividend 100 UCITS ETF (DE) (ticker: ISPA). This ETF follows the STOXX® Global Select Dividend 100 Index, which consists of stocks from developed and emerging countries that pay a high dividend. Think of AT&T, Royal Dutch Shell, China Mobile and Banco Santander, for example.
Why do we find this ETF interesting? Because we believe that dividend stocks are an important source of income for any investor, especially in an environment of low interest rates and high volatility. Dividend stocks are stocks that pay out a portion of their profits to their shareholders, usually on a regular basis. Dividend stocks offer a stable return, a buffer against price declines and a signal of financial health.
This ETF therefore gives you the opportunity to invest in a sector that has a high dividend yield of 5.91% at the current price, which is much higher than the average of the market. The ETF achieved an annual return of 10.43% in 2023 and has an ongoing charge ratio of 0.46%.
Conclusion
These were our 6 favorite ETFs to invest in 2024. We hope you found this article interesting and useful and that you got some inspiration for your own investment strategy. Of course, these are not the only ETFs that are worth looking at, there are many more options on the market. It is always important to do your own research, set your own goals and manage your own risks.
If you want to learn more about ETFs and how you can use them to optimize your portfolio, we invite you to visit our website www.debelgischebelegger.be. There you will find more articles, tips, analyses and advice on everything related to investing.
