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Tax Day usually coincides with a jittery stock market as the S&amp;P 500 Index typically declines during the first half of April.

How Does The Stock Market Perform Ahead Of Tax Day? &#39;Rough&#39; At First, Data Shows

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Redditors on r/wallstreetbets discuss likelihood of recession based on historical indicators and current market conditions, with varying perspectives on timing, causes, and potential market implications.

The Next Recession: Redditors Say It&#39;s &#39;Usually Right After The Fed Pivots And Starts Cutting Rates&#39;

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There are tons of interesting <a href="https://www.benzinga.com/topic/taxes">tidbits about Tax Day</a>. 
According <a href="https://www.irs.gov/newsroom/irs-delivers-strong-2024-tax-filing-season-expands-services-for-millions-of-people-on-phones-in-person-and-online-with-expanded-funding">to</a> the Internal Revenue Service (IRS):
<ul>
<li>Officers answered more than one million taxpayer phone calls this season.</li>
<li>They processed over 100 million individual tax returns through April 6.</li>
<li>Tens of millions more filings will be made on the April 15 deadline.</li>
<li>About 19 million taxpayers will file extensions due Oct. 15.</li>
<li>More than $200 billion in refunds were already delivered. </li>
<li>The average refund was $3,011 — a 4.6% increase from last April's average of $2,878.</li>
</ul>
These numbers change yearly, but there&#8217;s at least one fairly consistent Tax-Day trend: a jittery stock market. 
According to <a href="https://www.bankrate.com/investing/the-tax-season-effect/">Bankrate</a>, citing data from S&amp;P Global&#8217;s Kensho unit, the first couple weeks of April are typically &#8220;rougher.&#8221;
Many taxpayers will liquidate stocks or tap their money market funds to fulfill immediate cash requirements.
And from 2000 to 2016, the S&amp;P 500 Index declined an average 0.2% during the first two weeks before Tax Day.
After Tax Day, it&#8217;s a different scenario. The S&amp;P 500 usually bounces back to finish April about 1.7% higher on average (climbing &#8220;an astonishing&#8221; 75% of the time, Bankrate notes). 
Per <a href="https://money.com/stocks-could-rise-after-tax-day/">Money.com</a>, the S&amp;P 500 index enjoyed an average gain of 0.83% in the week following the tax deadline from 1998 to 2022 (for 19 out of 25 years). The one-week median gain throughout the year is 0.31%.
In April, the market&#8217;s overall impact is minimal. Investors would be wise to stick to their long-term investment strategy and prioritize contributing to tax-advantaged retirement accounts (i.e., <a href="https://www.benzinga.com/money/what-is-a-401k">401k plans</a> and <a href="https://www.benzinga.com/money/best-ira-accounts">IRAs</a>).
Historically, the S&amp;P 500 has yielded around 10 percent annual gains. The goal is to stay invested over time rather than attempting to time the market. 
Financial advisors typically suggest that their clients invest in S&amp;P 500 index funds (see below) and remain focused on distant future outcomes rather than short-term fluctuations.
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/23/04/31731464/post-easter-spy-market-action-analyzing-s-p-500-etfs-historical-performance-after-the-ho">SPDR S&amp;P 500 ETF</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)</li>
<li>iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>)</li>
<li>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</li>
<li>iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>)</li>
<li>Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>)</li>
</ul>
Yardeni Research president Ed Yardeni predicts the S&amp;P 500 could surge <a href="https://www.benzinga.com/markets/equities/24/03/37724263/this-is-a-long-term-bull-market-market-expert-ed-yardeni-stands-by-his-5-400-year-end-s-p-500-ta">26% by 2026 to 6,500</a>.
"I think this is a long-term bull market,&#8221; the economist <a href="https://www.cnbc.com/video/2024/03/13/this-is-a-long-term-bull-market-says-ed-yardeni.html" target="_blank" rel="noreferrer noopener">told</a> CNBC in March. &#8220;I still got 5,400 by year-end and that was a pretty bold call a year ago, but right now that's looking pretty conservative, and why not more?"  
Now Read: <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38247125/retail-sales-rises-more-than-expected-in-march-indicate-strong-consumer-spending">Retail Sales Rises More Than Expected In March, Indicate Strong Consumer Spending</a>
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How Does The Stock Market Perform Ahead Of Tax Day? 'Rough' At First, Data Shows

Concerns about economic downturns are resurfacing, <a href="https://www.benzinga.com/topic/reddit">at least on Reddit</a>.
With a chart depicting Treasury yield spreads, the post invited Redditors to weigh in on their predictions and insights regarding the <a href="https://www.benzinga.com/topic/recession">possibility of a recession</a>.
See below. 
<figure class="wp-block-embed is-type-rich is-provider-reddit wp-block-embed-reddit"> 
<div class="wp-block-embed__wrapper">
<blockquote class="reddit-embed-bq" style="height:500px" ><a href="https://www.reddit.com/r/wallstreetbets/comments/1c29lik/its_been_almost_2_years_since_the_yield_curve/">It&#8217;s been almost 2 years since the Yield Curve inverted. When&#8217;s that recession happening again?</a> by<a href="https://www.reddit.com/user/qscvg/">u/qscvg</a> in<a href="https://www.reddit.com/r/wallstreetbets/">wallstreetbets</a></blockquote>
<script async src="https://embed.reddit.com/widgets.js" charset="UTF-8"></script></div>
</figure>
Broad U.S. equity market ETFs such as the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>), the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) often serve as barometers of the economic situation.
Also Read: <a href="https://www.benzinga.com//node/38221695">Consumer Sentiment Worsens In April, Inflation Expectations Rise Further: Stocks Fall, Gold Surges Above $2,400</a>
Insights from Redditors:
<ol>
<li>Timing and Rate Cuts: User ElevationAV suggests that recessions often follow after the Federal Reserve pivots and begins cutting interest rates. However, RiskRiches challenges this notion, suggesting that weak market conditions typically precede rate cuts, leading into a recession.</li>
<li>Causes of Recessions: According to Western_Objective209, most recessions are triggered by prolonged periods of high interest rates. Expressing concern about the current economic climate, they predict a recession within the next three months, citing flat inflation as a contributing factor.</li>
<li>Market Expectations: Mountain-Bar-2878 speculates that markets would respond favorably to expected rate cuts if accompanied by a decrease in inflation. However, they anticipate a negative market reaction if rate cuts are prompted by unforeseen economic disruptions.</li>
<li>Interpreting Recession Definitions: Redditor RoundTableMaker highlights the complexity of defining a recession, distinguishing between stock market downturns and economic recessions. They note that while the stock market experienced a downturn last year, it did not correspond to an economic recession.</li>
</ol>
As Redditors engage in discourse about the probability of a recession, varying perspectives emerge regarding the timing, causes, and potential market implications. 
Some Reddit users anticipate a looming recession, citing historical patterns and current economic indicators. Others remain cautiously optimistic about the resilience of the markets. 
As discussions evolve, insights from online communities like r/wallstreetbets provide valuable perspectives for investors navigating uncertain economic terrain.
Read Next: <a href="https://www.benzinga.com//node/38085080">Never Mind Jerome Powell? Bullish Analyst Predicts Over 3 Rate Cuts This Year, Calls Recent Inflation Spike &#8216;Statistical Aberration&#8217;</a>
Image: Shutterstock

The Next Recession: Redditors Say It's 'Usually Right After The Fed Pivots And Starts Cutting Rates'

The big three fund managers that jointly manage more than $23 trillion in assets are coming under the scrutiny of federal regulators over their large holdings in many <a href="https://www.benzinga.com/topic/banks">U.S. banks</a>.
BlackRock Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), State Street Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) and Vanguard run funds that passively track the performances of equity indexes such as the S&amp;P 500. To achieve this, they attempt to match the weightings of stocks held in these funds, to the index weightings.
But in doing so, BlackRock and Vanguard have each built holdings of more than 10% of the shares at several banks, and this is worrying the Federal Deposit Insurance Corp (FDIC), one of the government institutions responsible for banking supervision.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964.png" alt="" class="wp-image-274036" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38047230/historic-s-p-500-rally-in-q1-flashes-bullish-signals-for-2024-only-the-ninth-time-s">Historic S&amp;P 500 Rally In Q1 Flashes Bullish Signals For 2024: &#8216;Only The Ninth Time Since 1940&#8217;</a>
<h2 class="wp-block-heading">Ten Percent Rule</h2>
At present, 10% ownership of shares is considered a threshold at which point an investor is considered to have a controlling interest in a bank. Investors must then seek regulatory permission to acquire shares beyond this threshold.
But fund managers are largely exempt from this requirement given their passive investment roles, although they can still use their share ownership to vote in shareholder meetings.
Some board members of the FDIC, are becoming concerned that the big fund managers could overlook their commitment to passive investment and exert greater influence over banks, given the size of their stakes.
Board member Jonathan McKernan <a href="https://www.wsj.com/finance/regulation/regulator-probes-blackrock-and-vanguard-over-huge-stakes-in-u-s-banks-b9f58619?mod=latest_headlines">told</a> the Wall Street Journal of his concerns and is seeking a curb on BlackRock and Vanguard from acquiring further shares above the 10% threshold while the FDIC investigates.
&#8220;We need to be doing more to actually confirm that the Big Three are not leveraging their large stakes to exert influence over FDIC-regulated banks,&#8221; he told the WSJ.
BlackRock owns the iShares series of exchange-traded funds. Its flagship ETF that follows the S&amp;P 500 is the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). Vanguard, meanwhile, manages the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), while State Street runs the SPDR series and the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is its big index tracker.
<h2 class="wp-block-heading">&#8216;Problem Of Twelve&#8217;</h2>
It&#8217;s not only regulators who have concerns over the influence of the big funds. In his 2023 book &#8220;The Problem of Twelve,&#8221; Harvard law professor John Coates asserts that roughly 12 people will have effectively seized power over the majority of U.S. public companies in the future.
He issued similar <a href="https://globalreports.columbia.edu/books/the-problem-of-twelve/">warnings</a> about &#8220;a small number of institutions [that] acquire the means to exert outsized influence over the politics and economy of a nation.&#8221;
He says in the book: &#8220;The Big Four index funds of Vanguard, State Street, Fidelity, and BlackRock control more than 20% of the votes of S&amp;P 500 companies — a concentration of power that's unprecedented in America.&#8221;
In its iShares US Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) BlackRock&#8217;s biggest banking holdings are in JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) and Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>). The Vanguard Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFH#NYSE">VFH</a>) holds the same three stocks but with differing weightings.
Benzinga reached out to the FDIC for further details, but the agency said it was not commenting.
Now Read: <a href="https://www.benzinga.com/news/earnings/24/04/38021303/fanduel-success-drives-flutter-to-seek-primary-listing-on-nyse">FanDuel Success Drives Flutter To Seek Primary Listing On NYSE</a>
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The first quarter of 2024 proved to be an eventful period for investors as the S&amp;P 500 Index exhibited significant growth, surging by 9.94%. Among the various sectors comprising the index, two sectors stood out for their remarkable performance: energy <a href="https://www.benzinga.com/quote/XLC">and communication services</a>. 
The S&amp;P 500 Index is widely tracked by the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>).
Also Read: <a href="https://www.benzinga.com/markets/equities/24/03/37927561/goldman-sachs-predicts-15-upside-for-s-p-500-ai-boom-could-drive-market-to-6-000">Goldman Sachs Predicts 15% Upside For S&amp;P 500, AI Boom Could Drive Market To 6,000</a>
Let&#8217;s delve deeper into the standout sectors and the top-performing stocks within each.
<h2 class="wp-block-heading">Energy Sector: A Strong Rally (+13.47%)</h2>
The energy sector, represented by the SPDR Energy Select Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), experienced a notable upswing with a growth rate of 13.47% during Q1. This surge can be attributed to multiple factors, including the ongoing global economic recovery, increased demand for oil and gas, and supply chain disruptions impacting the sector.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="630" height="465" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084242/Screenshot-2024-04-02-at-6.11.58-PM.png" alt="" class="wp-image-273757" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084242/Screenshot-2024-04-02-at-6.11.58-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084242/Screenshot-2024-04-02-at-6.11.58-PM-300x221.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></figure>
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Leading the charge in the energy sector were several key stocks that significantly contributed to its impressive performance:
<ol>
<li>Marathon Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>): With a remarkable surge of 37.78%, Marathon Petroleum stock has emerged as one of the top-performing stocks in the energy sector. The company, which engages in refining, marketing, and transportation of petroleum products, benefited from rising oil prices and strong demand for refined products.</li>
<li>Valero Energy Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>): Valero Energy stock recorded a substantial gain of 32.80% during Q1. As one of the largest independent petroleum refining and marketing companies, Valero capitalized on favorable market conditions, robust refining margins, and operational efficiencies to drive its impressive performance.</li>
<li>Targa Resources Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRGP#NYSE">TRGP</a>): Targa Resources&#8217; stock witnessed a solid growth rate of 29.19% in Q1. The company, specializing in the gathering, processing, and storage of natural gas and natural gas liquids, benefited from increased demand for natural gas and higher commodity prices.</li>
<li>Diamondback Energy Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NYSE">FANG</a>): Diamondback Energy, an independent oil and natural gas company, saw its stock price surge by 28.61% during the first quarter. The company&#8217;s focus on efficient operations, cost discipline, and strategic asset development contributed to its strong performance amid favorable market conditions.</li>
<li>Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>): Phillips 66 is a diversified energy manufacturing and logistics company. Its stock delivered a solid performance with a growth rate of 22.68% in Q1. The company&#8217;s integrated business model, along with its focus on operational excellence and capital discipline, positioned it well to capitalize on improving market dynamics.</li>
</ol>
<h2 class="wp-block-heading">Communication Services: Riding High (+13.25%)</h2>
While the energy sector led the pack, communication services emerged as a close second in terms of performance. The Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>), which adequately represents the sector&#8217;s equity, posted a return of 13.25% over the past 3 months. This sector, encompassing companies involved in telecommunications, media, and entertainment, benefited from various factors driving demand for digital services and content consumption.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="630" height="465" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084256/Screenshot-2024-04-02-at-6.12.16-PM.png" alt="" class="wp-image-273758" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084256/Screenshot-2024-04-02-at-6.12.16-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084256/Screenshot-2024-04-02-at-6.12.16-PM-300x221.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></figure>
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Here are the top-performing stocks within the communication services sector:
<ol>
<li>Meta Platforms, Inc. Class A (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>): Formerly known as Facebook, Meta Platforms&#8217; stock witnessed an impressive surge of 38.82% in Q1. The company&#8217;s strategic focus on the metaverse, virtual reality technologies, and digital advertising propelled its stock to new heights, despite regulatory challenges and controversies.</li>
<li>Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>): Walt Disney stock experienced robust growth of 34.60% during the first quarter. The entertainment giant&#8217;s diversified portfolio of media networks, theme parks, and streaming services, coupled with successful content releases and the gradual recovery of the global tourism industry, contributed to its stellar performance.</li>
<li>Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>): Netflix is a leading streaming service provider. Netflix stock&#8217;s performance during the past quarter was solid, recording a growth rate of 26.17% in Q1. The company continued to benefit from the secular shift towards digital streaming, the success of its original content, and its expanding international subscriber base.</li>
<li>Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>): Verizon Communications is a well-known telecommunications company. Its stock posted a respectable gain of 12.15% during the first quarter. The company&#8217;s focus on expanding its 5G network infrastructure, improving customer experiences, and diversifying its revenue streams contributed to its steady growth.</li>
<li>Omnicom Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMC#NYSE">OMC</a>): Leading global marketing and corporate communications company, Omnicom Group&#8217;s stock price rose by 11.64% in Q1. The company&#8217;s diverse range of advertising, marketing, and public relations services, combined with its ability to adapt to evolving consumer trends, supported its solid performance.</li>
</ol>
The first quarter of 2024 witnessed robust performance across various sectors of the S&amp;P 500 index. The energy sector emerged as the top performer, while communication services followed closely behind. The financials sector, as represented by the SPDR Select Sector Fund &#8211; Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>), was up 11.30% while the industrials sector came in fourth at 9.65%. The industrials sector is tracked by the SPDR Select Sector Fund &#8211; Industrial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>).
Read Next: <a href="https://www.benzinga.com/markets/equities/24/03/37763852/bizarrely-overvalued-s-p-500-could-plummet-49-if-recession-strikes-warns-top-strategist">&#8216;Bizarrely Overvalued&#8217;: S&amp;P 500 Could Plummet 49% If Recession Strikes, Warns Top Strategist</a>
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S&P 500's Q1 Standouts: Energy, Communication Sectors In The Lead — 10 Top-Performing Stocks

The opening quarter of the year ended with U.S. equity indices marking the fifth consecutive month of gains, gold prices soaring to all-time highs and Bitcoin&#8216;s (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) market cap surging by over $500 billion in <a href="https://www.benzinga.com/topic/bitcoin">the past three months.</a>
The exchange-traded fund (ETF) market witnessed significant activity, with certain funds capturing substantial inflows, reflecting shifting investor sentiment.
A review of March&#8217;s ETF inflows uncovers a notable trend: two Bitcoin-related ETFs, launched just at the start of the year, have swiftly made their way into the top 10 for inflows. This rapid ascent highlighted a significant shift toward embracing cryptocurrency within mainstream investment strategies.
According to Canaccord Genuity, this &#8220;tailwind should persist&#8221; in the quarters to come as retail investors increasingly seek to incorporate Bitcoin ETFs into IRAs and other tax-favored accounts. 
&#8220;The anticipation is that spot ETFs will play a more pivotal role in influencing Bitcoin&#8217;s price dynamics in the future,&#8221; analysts said in a note. 
A Bank of America&#8217;s recent analysis revealed a shift in investor behavior, with ETF inflows surpassing single stock inflows for the first time in five weeks.
Here&#8217;s an in-depth look at the top 10 ETFs by inflows for March, providing a clear view of where investors are placing their bets.
<h1 class="wp-block-heading">March&#8217;s Top 10 ETF By Inflows: A Surprising Entry of Two Bitcoin Funds</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Rank</th>
<th>ETF Name</th>
<th>Inflows (USD)</th>
</tr>
</thead>
<tbody>
<tr>
<td>1</td>
<td>SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)</td>
<td>21.288 B</td>
</tr>
<tr>
<td>2</td>
<td>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</td>
<td>8.294 B</td>
</tr>
<tr>
<td>3</td>
<td>iShares Bitcoin Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NASDAQ">IBIT</a>)</td>
<td>7.322 B</td>
</tr>
<tr>
<td>4</td>
<td>iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>) </td>
<td>4.808 B</td>
</tr>
<tr>
<td>5</td>
<td>iShares MSCI USA Quality Factor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QUAL#NYSE">QUAL</a>)</td>
<td>3.931 B</td>
</tr>
<tr>
<td>6</td>
<td>BlackRock U.S. Equity Factor Rotation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DYNF#NYSE">DYNF</a>)</td>
<td>3.597 B</td>
</tr>
<tr>
<td>7</td>
<td>Fidelity Wise Origin Bitcoin Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FBTC#NYSE">FBTC</a>)</td>
<td>3.018 B</td>
</tr>
<tr>
<td>8</td>
<td>iShares U.S. Treasury Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GOVT#NYSE">GOVT</a>)</td>
<td>2.783 B</td>
</tr>
<tr>
<td>9</td>
<td>Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>) </td>
<td>2.693 B</td>
</tr>
<tr>
<td>10</td>
<td>Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)</td>
<td>2.682 B</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: Tradingview</figcaption></figure>
Read Now: <a href="https://www.benzinga.com/markets/equities/24/04/38026629/alarming-rise-in-home-insurance-costs-expected-to-continue-into-2024-insurance-stock-etf-soars-t">Alarming Rise In Home Insurance Costs Expected To Continue Into 2024: Insurance Stock ETF Soars To All-Time Highs</a>
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Two Bitcoin-Related ETFs Shine In March's Top 10 Inflow Rankings: 'This Tailwind Should Persist,' Analysts Say

Interest rates are on everyone&#8217;s radar, but what&#8217;s the game plan amid the Federal Reserve&#8217;s decision to hold <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37900527/federal-reserve-pushes-stocks-to-record-highs-as-rate-cuts-loom-nvidia-rallies-appl">steady for now</a>? 
Benzinga interviewed Greg McBride, CFA, Senior Vice President of Bankrate, for his exclusive insights on the current state of the economy and his expectations with the future.
Related: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37900527/federal-reserve-pushes-stocks-to-record-highs-as-rate-cuts-loom-nvidia-rallies-appl">Federal Reserve Pushes Stocks To Record Highs As Rate Cuts Loom, Nvidia Rallies, Apple Faces Legal Woes: This Week In The Markets</a>
<h2 class="wp-block-heading">Interest Rates May Take The Stairs Coming Down</h2>
McBride offered some very actionable insights. In response to a question about the Fed keeping interest rates unchanged this time, McBride said, &#8220;Interest rates took the elevator going up, but they're going to take the stairs coming down.&#8221; 
Per McBride, savers can capitalize on potentially lucrative returns that outpace inflation, from savings accounts, money markets, and CDs, provided they shop around for optimal deals. For borrowers, the mantra remains clear: prioritize slashing high-cost credit card debt.
His advice? &#8220;Always make at least your minimum payment on time – you can always pay more later.&#8221; It&#8217;s about dodging those pesky overdraft fees and late charges.
<h2 class="wp-block-heading">Real Estate Enthusiasts, Brace Yourselves</h2>
McBride&#8217;s forecast suggests a seller&#8217;s market, with limited inventory dictating terms. And falling mortgage rates? They might not spell relief as home prices continue their upward trajectory. &#8220;The housing market will continue to be characterized by high home prices, high financing costs, and a limited number of homes for sale,&#8221; said McBride.
This should be good news for those invested in the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>), the Schwab US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>), the Real Estate Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) or the iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>). Rising home prices often reflect a healthy real estate market, which can boost the value of real estate assets held within these ETFs.
Investors in mortgage ETFs such as the iShares MBS ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MBB#NYSE">MBB</a>) and the Vanguard Mortgage-Backed Securities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VMBS#NYSE">VMBS</a>) may see a mixed impact.
Rising home prices can increase the value of mortgage-backed securities (MBS) held within mortgage ETFs. This appreciation can lead to higher returns for investors holding these ETFs. However, higher home prices also make it more challenging for potential homebuyers to afford properties and/or to refinance their existing mortgages, potentially leading to decreased demand for mortgages.
Also Read: <a href="https://www.benzinga.com/real-estate/reit/24/03/37882885/10-real-estate-stocks-move-on-thursday-fed-rate-cut-possibility-sparks-rally-for-troubled-sector">10 Real Estate Stocks Move On Thursday: Fed Rate Cut Possibility Sparks Rally For Troubled Sector</a>
<h2 class="wp-block-heading">Legislative Acts May Sway Sentiment, Let Diversified ETFs Steer Your Ship</h2>
When questioned on legislative juggernauts like the CHIPS Act and Infrastructure Act that promise economic shifts, McBride&#8217;s advice is refreshingly pragmatic: &#8220;Investors are best served building a low-cost, well-diversified portfolio.&#8221; Forget chasing fleeting trends; it&#8217;s consistency that builds wealth, he says.
Exchange-traded funds are a low-cost, diversified way to gain exposure and build wealth consistently. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) are the most popular and largest ETFs for U.S. equity exposure.
When asked about legislative acts impacting consumer sentiment and spending behavior, McBride said, &#8220;When Americans have jobs and paychecks coming in, the money gets spent.&#8221; Legislative acts may sway sentiment, but economic fundamentals steer the ship.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37922752/value-growth-stocks-trade-at-record-highs-but-long-term-leadership-lies-with-one-an">Value, Growth Stocks Trade At Record Highs But Long-Term Leadership Lies With One: Analyst</a>
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EXCLUSIVE: Interest Rates Rode The Elevator Up, But Analyst Predicts They'll Take 'The Stairs Coming Down'

In January 2024, the Securities and Exchange Commission (SEC) approved several spot <a href="https://www.benzinga.com/money/where-to-buy-spot-bitcoin-etfs">Bitcoin exchange-traded funds (ETFs)</a> for trading in a landmark ruling. The ETFs have been the most successful launch in history, amassing over <a href="https://www.benzinga.com/markets/cryptocurrency/24/03/37638377/bitcoin-liquidity-crisis-incoming-bitcoin-etf-demand-surges-and-new-all-time-highs">$10 billion in net inflows</a> since launch. Some of the largest asset managers also took part in the ETF launch, with funds from BlackRock (IBIT) and Fidelity Investments (FBTC) hitting equity markets.
But Vanguard, the second-largest asset management company and ETF provider in the world, did not partake. This came as a surprise to some, as the ETFs have presented a huge opportunity for the fund sponsors in terms of profits. Vanguard CEO Tim Buckley commented on the ETFs, giving some clarity as to why Vanguard sat out:
"Something like <a href="https://www.benzinga.com/money/what-is-bitcoin-how-does-it-work">Bitcoin</a> is just too volatile and it&#8217;s not a store of value. It hasn&#8217;t been, and it&#8217;s very volatile," Vanguard CEO Tim Buckley said about why the company stayed out in the Vanguard webcast this March. "When stocks got hammered in the recent crisis, Bitcoin went right with them. And so it is speculative. Really tough to think about how it belongs in a long-term portfolio."
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Buckley also mentioned that Vanguard looks to release ETFs that invest in assets with "underlying cash flow," such as stocks and bonds. According to Buckley, this makes it easier to model future values and provides a stable asset for Vanguard clients' portfolios. To Buckley, Bitcoin offers neither of these, leading Vanguard to avoid offering Bitcoin ETFs.&nbsp;
Vanguard is known to take a more conservative approach to investing, offering highly diversified funds with low fees. Its most popular ETFs are the Vanguard Total Stock Market index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>). Overall, Vanguard's goal is to help clients build long-term portfolios that are positioned to grow in a controlled manner. Based on this, crypto's huge volatility and relative novelty do not align with Vanguard's core competencies.&nbsp;
Vanguard has not ruled out Bitcoin ETFs entirely. Janel Jackson, global head of ETF capital markets, said that "while the discussion about Bitcoin and cryptocurrencies, in general, has increased recently, we do not currently believe that there is an appropriate role for them to play in long-term portfolio." The key word is "currently," which implies that Vanguard is keeping an eye on the viability of crypto as a long-term investment.&nbsp;
Bitcoin will never meet the prerequisite Buckley described of producing cash flows, but if it continues to grow in both prevalence and use cases, it could move to a point where it deserves a place in the average investment portfolio. This may not happen anytime soon, as Vanguard seems to be hesitant to embrace crypto as a whole.
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<li>Bitcoin To $100,000?<a href="https://www.benzinga.com/money/coinbase-btc-100k"> Here&#8217;s what gold bug Peter Schiff said could happen on Anthony Pompliano&#8217;s podcast.</a></li>
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Vanguard CEO Tim Buckley Says "Bitcoin Is Too Volatile And It's Not A Store Of Value" — Asks If It Belongs In A Long Term Portfolio

Vanguard has become a towering figure <a href="https://www.benzinga.com/etfs">in the world of exchange-traded funds (ETFs)</a>. 
As investors increasingly turn to ETFs for their diversification, lower costs, and liquidity, understanding the offerings and strategies of major players like Vanguard is essential. 
Yet, amidst this expansive array of financial instruments, one notable absence in Vanguard&#8217;s portfolio raises eyebrows: the lack of a <a href="https://www.benzinga.com/topic/bitcoin-etf">Bitcoin ETF. </a>
Here, we delve into the five critical factors about Vanguard ETFs, also explaining why a Bitcoin ETF is deliberately missing from their portfolio lineup.
<h3 class="wp-block-heading">Vanguard&#8217;s Status In The ETF Arena</h3>
Vanguard ranks as the second-largest ETF issuer globally, overseeing a diverse portfolio of over a hundred ETFs and boasting an impressive $2.5 trillion in assets under management (AUM), just shy of BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), which leads with $2.7 trillion AUM.
The Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), with $426 billion in AUM as of Mar. 14, 2024, is not only Vanguard&#8217;s flagship fund but also the world&#8217;s second-largest ETF, trailing slightly behind the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) at $503 billion. 
Top 7 Vanguard&#8217;s ETFs By AUM
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF</th>
<th>AUM (bn)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Vanguard S&amp;P 500 ETF </td>
<td>426.87 </td>
</tr>
<tr>
<td>Vanguard Total Stock Market ETF </td>
<td>385.48 </td>
</tr>
<tr>
<td>Vanguard FTSE Developed Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEA#NYSE">VEA</a>)</td>
<td>130.07 </td>
</tr>
<tr>
<td>Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>)</td>
<td>119.81 </td>
</tr>
<tr>
<td>Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>)</td>
<td>115.14</td>
</tr>
<tr>
<td>Vanguard Total Bond Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BND#NYSE">BND</a>)</td>
<td>105.94</td>
</tr>
<tr>
<td>Vanguard Div Appreciation ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIG#NYSE">VIG</a>) </td>
<td>77.92</td>
</tr>
</tbody>
</table>
</figure>
<h3 class="wp-block-heading">Champion of Low Fees</h3>
In the competitive ETF marketplace, cost efficiency is a significant battleground. Vanguard emerges as a victor here, offering the lowest average expense fees among its funds—an AUM-weighted average expense ratio of a mere 0.05%, according to data from VettaFi. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Issuers</td>
<td>Expense Rank</td>
<td>Avg. Expense Ratio (%)</td>
</tr>
<tr>
<td>Vanguard</td>
<td>1</td>
<td>0.05%</td>
</tr>
<tr>
<td>BNY Mellon</td>
<td>2</td>
<td>0.05%</td>
</tr>
<tr>
<td>Charles Schwab</td>
<td>3</td>
<td>0.08%</td>
</tr>
<tr>
<td>Bondbloxx Investment Management Corp.</td>
<td>4</td>
<td>0.10%</td>
</tr>
<tr>
<td>GAMCO Investors, Inc.</td>
<td>5</td>
<td>0.11%</td>
</tr>
<tr>
<td>Humankind USA LLC</td>
<td>6</td>
<td>0.11%</td>
</tr>
<tr>
<td>State Street</td>
<td>7</td>
<td>0.12%</td>
</tr>
<tr>
<td>Deutsche Bank AG</td>
<td>8</td>
<td>0.13%</td>
</tr>
<tr>
<td>Goldman Sachs</td>
<td>9</td>
<td>0.15%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: VettaFi</figcaption></figure>
The cheapest ETFs issued by Vanguard are the Vanguard S&amp;P 500 ETF, Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>), and the Vanguard Total Bond Market ETF, all screening an expense ratio of just 0.03%.
<h3 class="wp-block-heading">Leading The 2024 Inflow Race</h3>
In 2024, Vanguard outshines its competitors in attracting investment flows. The issuer has seen a staggering $75 billion in inflows over the past three months, eclipsing BlackRock&#8217;s $55.7 billion, thereby securing its position as the top performer in fund flows thus far this year.
The Vanguard S&amp;P 500 ETF has attracted $21 billion over the past three months, topping the ranking among its peers. 
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Issuers</td>
<td>Fund Flow Rank</td>
<td>3-Month Fund Flow ($MM)</td>
</tr>
<tr>
<td>Vanguard</td>
<td>1</td>
<td>$70,097.57</td>
</tr>
<tr>
<td>BlackRock, Inc.</td>
<td>2</td>
<td>$55,791.59</td>
</tr>
<tr>
<td>Invesco</td>
<td>3</td>
<td>$20,380.07</td>
</tr>
<tr>
<td>State Street</td>
<td>4</td>
<td>$16,097.65</td>
</tr>
<tr>
<td>Dimensional</td>
<td>5</td>
<td>$9,362.99</td>
</tr>
<tr>
<td>JPMorgan Chase</td>
<td>6</td>
<td>$9,263.38</td>
</tr>
<tr>
<td>Fidelity</td>
<td>7</td>
<td>$9,240.89</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: VettaFi</figcaption></figure>
<h3 class="wp-block-heading">A Conservative Product Range</h3>
Unlike some of its peers, Vanguard has opted for a more conservative route in its ETF offerings. The company does not offer leveraged ETFs, sticking strictly to equity and fixed-income products. 
This strategic choice highlights Vanguard&#8217;s focus on traditional investment vehicles over speculative or alternative assets. Vanguard&#8217;s portfolio notably lacks any commodities, currency, or Bitcoin-related ETFs.
<h3 class="wp-block-heading">Absence of Bitcoin and Crypto ETFs</h3>
This absence isn&#8217;t due to oversight but a deliberate decision. Vanguard has explicitly stated it has no plans to introduce a Bitcoin ETF or any other crypto-related products, distinguishing itself from other major ETF issuers — such as BlackRock, VanEck, Franklin Templeton, WisdomTree, Invesco, Fidelity, Global X, 21 Shares and ProShares – who have embraced the crypto bandwagon.
Why No Bitcoin ETF? Vanguard&#8217;s Reasoning
Vanguard&#8217;s stance on Bitcoin and cryptocurrencies is grounded in a cautious approach to investment merit and client needs. Janel Jackson, global head of ETF Capital Markets and broker &amp; index relations at Vanguard, has expressed skepticism about the role of cryptocurrencies in long-term portfolios. 
Citing crypto&#8217;s speculative nature, lack of inherent economic value, and potential to disrupt portfolio stability, Vanguard sees crypto as an &#8220;immature asset class.&#8221; 
Instead, the company invests its interest in blockchain technology for its potential to enhance capital market efficiency, steering clear of cryptocurrencies as investment products.
Now Read: <a href="https://www.benzinga.com/markets/cryptocurrency/24/03/37712624/tightening-the-tap-regional-banks-tech-stocks-bitcoin-brace-for-liquidity-crunch-as-fed-li">Tightening The Tap: Regional Banks, Tech Stocks, Bitcoin Brace For Liquidity Crunch As Fed Lifeline Ends</a>

5 Things You Need To Know About Vanguard ETFs: Why There's No Bitcoin ETF In Their Lineup?

Good times for the market are often celebrated by investors. But when tailwinds are long-lasting, a question begins to creep up: are <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37553449/analyst-brushes-off-tech-bubble-concerns-citing-nvidias-strong-performance-the-grea">we in a bubble?</a>
The S&amp;P 500 has experienced a remarkable run in recent months, led by substantial growth stemming from the tech sector. Since the start of the year, the index has repeatedly closed at historic highs, <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/24/03/37548534/s-p-500-index-closes-at-record-heights-reaches-most-overbought-conditions-since-januar">beating the latest record last week</a>. The index is up over 32% in the past year.
Last week, Bank of America analysts raised the S&amp;P 500's one-year price target<a href="https://www.benzinga.com/markets/equities/24/03/37474744/bank-of-america-raises-s-p-500-price-target-to-5-400-warns-of-near-term-pullback"> from 5000 to 5400</a>, raising the expected growth by 5%. The analysts are expecting the index to yield 13% in the coming 12 months, yet they warned that the sustained growth could be preceded by a pull-back in the near term.
Analyst Savita Subramanian explained in a note, release on Monday, that following last week's price target correction, her team received pushback from investors and colleagues who "see the market is trading in bubble-like territory", and think it's time for "something else to break from the Fed&#8217;s aggressive monetary policy."
The upcoming release of inflation data for February, set for Tuesday of this week, will likely be the final piece of information that the agency will use to decide if interest rates<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37593207/february-inflation-will-guide-feds-policy-course-return-to-2-target-faces-challenge"> should be lowered</a> at its next FOMC meeting later this month.
Voices claiming that a full market bubble-burst<a href="https://www.benzinga.com/startups/24/02/37312725/this-tech-bubble-ceos-warning-resurfaces-after-nvidias-blockbuster-earnings-what-were-you-thinking"> is nearing have been loud</a> in recent weeks, with many drawing parallels between the recent tech rally and past market crashes.
Enthusiasm around generative AI, which fueled a new faith in Big Tech giants, has caused many analysts to <a href="https://www.benzinga.com/startups/24/02/37338210/apollos-chief-economist-sounds-alarm-on-ai-bubble-warning-its-bigger-than-the-1990s-tech-bubble">compare today's market with the run-up to the dot-com crash</a>.
Also read: <a href="https://www.benzinga.com/news/earnings/24/03/37593551/is-nvidia-stock-becoming-too-volatile-to-buy-best-performing-stock-on-s-p-500-tests-investors-nerve">Is Nvidia Stock Becoming Too Volatile To Buy? Best-Performing Stock On S&amp;P 500 Tests Investors&#8217; Nerves</a>
On Friday, the so-called "semiconductor mania" took the up-and-coming chip sector to new heights, surpassing peaks seen in the dot-com industry<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37562595/semiconductor-mania-surges-past-dot-com-bubbles-peak-abnormal-times-top-wall-street"> before the crash</a>.
One analysis from last month expected the bubble —if there is indeed one— to continue to inflate at least until 2025, <a href="https://www.benzinga.com/markets/equities/24/02/37115265/stock-market-bubble-to-inflate-until-2025-capital-economics-john-higgins-anticipates-s-p-500-to-">taking the S&amp;P 500 above the 6500 mark</a>, while other analysts continue to deny that <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37412148/are-we-in-a-stock-market-bubble-hedge-fund-guru-ray-dalio-weighs-in-sees-magnificen">there's a bubble altogether</a>.
In an effort to clear the air, Subramanian expanded on the reasons behind her decision to raise the S&amp;P 500's price target and explained that if we're in a similar trajectory to that of the dot-com bubble, today looks more like the mid-90's than anything else.
"U.S. equity sentiment is at almost precisely the same level as in 1995," wrote the analyst, based on her firm's Sell Side Indicator. It is neutral, not wildly bullish like it was in 1999, she noted.
Many of the subsectors of tech driving today's hype, namely AI and automation, are at a nascent state, similar to where personal computing and the internet were in the mid-90s.
No bubble In Sight: Subramanian laid down the conditions that need to come into play for a bubble to be confirmed. These are, in her view, a gap between price and intrinsic value, democratization of the asset class, and rampant speculation, often amplified by the use of <a href="https://www.benzinga.com/money/what-is-leverage">leverage</a>.
All these conditions were met in all high-profile market bubbles in history, including the dot-com crash, the housing bubble of 2007 and the tulip-mania of 1637. Today's market, however, doesn't meet that criteria.
While historically-high valuations (as those of today) can be a cause for alarm, they don't necessarily signify a bubble.
"Valuation matters," Subramanian writes, "But comparing a trailing PE today to a trailing PE of prior decades makes little sense given the index&#8217;s mix shift." While we're looking at the same index, it's currently composed of different companies, so we need to take past examples with a grain of salt, she adds.
"Furthermore, companies have been forced to abandon low quality EPS growth to focus on efficiency, yielding more predictable margins and warranting a higher multiple," she writes.
For a market bubble to burst, market sentiment needs to be at euphoric levels. Yet today's market sentiment is neutral at best, and euphoria is focused on specific sectors like AI or <a href="https://www.benzinga.com/news/24/03/37413349/ozempic-wegovy-other-weight-loss-drugs-wont-solve-global-obesity-crisis-affecting-1b-people-who-warn">weight-loss drugs</a>.&nbsp;
While the overall sentiment on equities has improved since last year, it is "nowhere near bullish levels of prior market peaks."
The S&amp;P 500 is closely monitored through ETFs such as the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), and iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>), providing various avenues for investment in its comprehensive performance.
Now read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37429663/tech-rally-or-dotcom-d-j-vu-the-magnificent-sevens-secret-sauce-unveiled">Tech Rally Or Dotcom Déjà Vu? The Magnificent Seven&#8217;s Secret Sauce Unveiled</a>
Image created using artificial intelligence with Midjourney.

No Stock Market Bubble In Sight: 'Precisely The Same Level As In 1995,' Not Dot-Com Crash, Says Analyst

Banks such as Bank of America Corp. and Wells Fargo &amp; Co. have announced their foray into crypto by providing spot Bitcoin exchange-traded funds (ETFs) for their clients. This major move follows other investment platforms such as Fidelity Investments, Charles Schwab Corp. and Robinhood Markets Inc. doing the same.
One notable holdout so far has been Vanguard, but some have speculated that may change soon.
Vanguard is searching for a replacement for CEO Tim Buckley, who is set to retire this year.
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Vanguard customers attempting to buy a spot Bitcoin ETF through the platform have run into an error message saying that the "trade cannot be completed" and that "securities may be unavailable for purchase at Vanguard due to a number of variables including regulatory restrictions, corporate actions or various trading and/or settlement limitations."
A Vanguard spokesperson later elaborated on the error message, sharing that crypto products don't align with the company's philosophy of asset classes that &#8220;build blocks of a well-balanced, long-term investment portfolio.&#8221;
While more of Wall Street is getting in on the excitement around crypto, other legendary investors remain cautious.
Trending: This startup coined &#8220;eBay for gamers&#8221; with a breaktaking track record has opened up<a href="https://www.benzinga.com/money/gameflip-2"> a window to invest in its future growth</a>.
Take Warren Buffett's comments from his most recent shareholder letter.
"Wall Street … would like its customers to make money, but what truly causes its denizens' juices to flow is feverish activity," Buffett wrote in his annual letter to shareholders in February. "At such times, whatever foolishness can be marketed will be vigorously marketed."
While he did not specifically call out Bitcoin in the letter and has been wrong in his predictions for the asset so far, even saying in early 2018 that if he could buy a five-year put on <a href="https://www.benzinga.com/money/best-cryptocurrency-brokers">cryptocurrencies</a> he would, Wall Street's recent warming to Bitcoin comes as Bitcoin nears an all-time high.
However, Vanguard's absence from the space has not hurt its ability to draw in new client assets, as its client base tends to have less interest in trading volatile markets than that of its peers.
In a Vanguard study that looked at the trading activity for 9.1 million self-directed investors from Jan. 1 through May 23, 2022, a volatile time in the market, only 13.3% of households bought or sold securities.&nbsp;
"The results for that period underscore our longstanding finding that trading at Vanguard in response to volatile markets occurs among a small fraction of households," Vanguard Senior Investment Strategist Jean Young said.
James Seyffart, an analyst for Bloomberg, recently shared that Vanguard's Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), which passively tracks the <a href="https://www.benzinga.com/money/best-sp-500-index-fund">S&amp;P 500 index</a>, has already brought in over $15.7 billion in new money so far this year.&nbsp;
In comparison, BlackRock Inc.'s spot Bitcoin ETF, the iShares Bitcoin ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NASDAQ">IBIT</a>), has only attracted half of that over the same period.
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</ul>

Vanguard's Anti-Bitcoin CEO Set to Retire As Major Banks Begin Offering Spot Bitcoin ETFs To Clients

The U.S. stock market continues its unchallenged bull run, with Wall Street notching yet another week of record-breaking highs for the S&amp;P 500 <a href="https://www.benzinga.com/news/earnings/24/03/37427925/s-p-500-nasdaq-100-hit-record-highs-as-dollar-treasury-yields-weaken-chipmakers-shine-nycb-sinks-wh">and Nasdaq 100 indices.</a>
This ongoing surge demonstrates the remarkable strength of the bullish sentiment, with stocks marking their 16th positive week out of the last 18. Since late October, this rally has propelled the S&amp;P 500 index by 25% and the Nasdaq 100 by 30%.
The momentum on Wall Street has also catapulted the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) – the world&#8217;s largest exchange traded fund – to a historic milestone, surpassing $500 billion in assets under management for the first time ever.
Trailing behind the SPY are BlackRock&#8217;s iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) with $442 billion, and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) with $413 billion under management. 
Other notable milestones were achieved among S&amp;P 500 components during Friday&#8217;s session. Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) reached a market capitalization exceeding $2 trillion, Eli Lilly and Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LLY#NYSE">LLY</a>) surpassed $700 billion and Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>) overtook Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) to become the eighth-most valuable company.
<h2 class="wp-block-heading">Chart: SPY Is First ETF To Reach $500 Billion In AUM</h2>
<img decoding="async" src="https://www.benzinga.com/files/images/story/2024/1709327108_0.png" alt="" />
<h2 class="wp-block-heading">Top-Performing S&amp;P 500 Stocks Friday</h2>
The following are the five top-performing stocks within the S&amp;P 500 on Friday: 
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Stock Name</th>
<th>Sector</th>
<th>Price</th>
<th>1-Day Return %</th>
</tr>
</thead>
<tbody>
<tr>
<td>NetApp, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTAP#NASDAQ">NTAP</a>)</td>
<td>Information Technology</td>
<td>106.93</td>
<td>19.98%</td>
</tr>
<tr>
<td>The Cooper Companies, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COO#NASDAQ">COO</a>)</td>
<td>Health Care</td>
<td>102.07</td>
<td>9.05</td>
</tr>
<tr>
<td>Western Digital Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/WDC#NASDAQ">WDC</a>)</td>
<td>Information Technology</td>
<td>63.99</td>
<td>7.61</td>
</tr>
<tr>
<td>Broadcom Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>)</td>
<td>Information Technology</td>
<td>1,392.56</td>
<td>7.08</td>
</tr>
<tr>
<td>DexCom, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DXCM#NASDAQ">DXCM</a>)</td>
<td>Health Care</td>
<td>121.19</td>
<td>5.32</td>
</tr>
</tbody>
</table>
</figure>
<h2 class="wp-block-heading">Top 10 Performing S&amp;P 500 Stocks Year-To-Date</h2>
The top-performing S&amp;P 500 stocks year-to-date are as follows:
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Company</td>
<td>YTD Return</td>
<td>Market Cap</td>
</tr>
<tr>
<td>NVIDIA Corporation</td>
<td>65.43%</td>
<td>$2,016B</td>
</tr>
<tr>
<td>Constellation Energy Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>)</td>
<td>44.19%</td>
<td>$53.37B</td>
</tr>
<tr>
<td>Meta Platforms, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>)</td>
<td>41.97%</td>
<td>$1,281.15B</td>
</tr>
<tr>
<td>Advanced Micro Devices, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CEG#NASDAQ">CEG</a>)</td>
<td>36.55%</td>
<td>$325.24B</td>
</tr>
<tr>
<td>Eli Lilly and Company </td>
<td>33.72%</td>
<td>$701.64B</td>
</tr>
<tr>
<td>Uber Technologies, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UBER#NYSE">UBER</a>)</td>
<td>31.30%</td>
<td>$167.86B</td>
</tr>
<tr>
<td>Applied Materials Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>)</td>
<td>29.60%</td>
<td>$174.53B</td>
</tr>
<tr>
<td>Ralph Lauren Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RL#NYSE">RL</a>)</td>
<td>28.68%</td>
<td>$11.86B</td>
</tr>
<tr>
<td>Tapestry, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TPR#NYSE">TPR</a>)</td>
<td>28.57%</td>
<td>$10.85B</td>
</tr>
<tr>
<td>Catalent, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CTLT#NYSE">CTLT</a>)</td>
<td>28.18%</td>
<td>$10.34B</td>
</tr>
</tbody>
</table>
</figure>
Read now: <a href="https://www.benzinga.com/general/biotech/24/02/37408271/top-stocks-not-named-nvidia-you-need-to-know-about-in-2024-heres-what-investors-think-wall-street">Top Stocks Not Named Nvidia You Need To Know About In 2024: Here&#8217;s What Investors Think About Them (Wall Street Vs. Reddit)</a>
Photo via Shutterstock.

AMAT

AVGO

CTLT

DXCM

JNPR

NTAP

NVDA

TSLA

UBER

Record-High S&P 500 Propels SPY ETF To $500-Billion Milestone, Nvidia Tops $2 Trillion, Broadcom Surpasses Tesla

The U.S. tech rally has been nothing short of spectacular over the past year. According to Peter Callahan, a sector specialist at Goldman Sachs Global Banking &amp; Markets, it&#8217;s not just a fleeting phenomenon but is rooted in sustainable <a href="https://www.benzinga.com/topic/magnificent-seven">and enduring fundamentals</a>.
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="380" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/01093702/Screenshot-2024-03-01-at-7.06.28-PM-1024x380.png" alt="" class="wp-image-235883" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/01093702/Screenshot-2024-03-01-at-7.06.28-PM-1024x380.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/01093702/Screenshot-2024-03-01-at-7.06.28-PM-300x111.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/01093702/Screenshot-2024-03-01-at-7.06.28-PM-768x285.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/03/01093702/Screenshot-2024-03-01-at-7.06.28-PM.png 1322w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
The S&amp;P 500 Index is up over 25% in the past year. 
This is evident by the price appreciation seen in ETFs tracking it — the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) and the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>).
At the forefront of this surge are the Magnificent Seven tech stocks. These have played a pivotal role in driving the S&amp;P 500&#8217;s recent rally. 
The chart above shows how the Magnificent Seven tech stocks have performed over the past year. Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) has led the surge, followed by Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Amazon.com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) next. These stocks have returned 234.86%, 164.89% and 86.70%, respectively, according to <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a> data.
Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) and Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) come next in the elite group. These have clocked 61.84%, 48.09%, 19.17% and 1.85% on the charts, respectively, over the past year as of Feb. 26, 2024.
Also Read: <a href="https://www.benzinga.com/markets/equities/24/02/37304905/analyst-who-coined-magnificent-7-label-declares-end-of-an-era-i-dont-see-these-seven-names-risin">Analyst Who Coined &#8216;Magnificent 7&#8217; Label Declares End Of An Era: &#8216;I Don&#8217;t See These Seven Names Rising Together&#8217;</a>
<h3 class="wp-block-heading">What&#8217;s Behind The Tech Rally? Callahan Weighs In</h3>
Since the beginning of 2023, these seven stocks have outshined the rest, marking an impressive 90% surge. 
On the other hand, the other 493 stocks in the S&amp;P 500 index have seen a comparatively modest 18% increase. Despite concerns about potential overvaluation and echoes of the dotcom bubble, Callahan sees a different narrative. He attributes the success of the Magnificent Seven to their strategic focus on generative AI.
<h3 class="wp-block-heading">Beyond The Hype</h3>
While the tech sector has witnessed a surge in investor sentiment due to the rise of AI, it&#8217;s not just hype, says Callahan. Real revenue and earnings growth accompany the excitement, he noted. In the fourth quarter, the Magnificent Seven reported a substantial 15% year-over-year increase in revenues. 
Looking ahead, an annual sales growth of 12% is anticipated through 2026, reflecting a robust and sustained trajectory. Callahan <a href="https://www.goldmansachs.com/intelligence/pages/tech-driven-rally-built-on-strong-foundation.html">asserts</a>, &#8220;This rally has been built on a strong foundation,&#8221; expressing confidence in the continued success of these tech giants fueled by the transformative power of generative AI.
As investors navigate the tech landscape, the Magnificent Seven&#8217;s focus on sustainable growth and cutting-edge technologies like generative AI positions them as key players in the ongoing tech revolution. 
Beyond the concerns of a potential bubble, the fundamentals driving this tech rally suggest a resilient and promising journey for the Magnificent Seven and, by extension, the broader tech landscape.
Read Next: <a href="http://Jim Cramer Evaluates Nvidia, Amazon And Other Magnificent 7 Earnings: 'The Seven Truly Did Acquit Themselves Well'">Jim Cramer Evaluates Nvidia, Amazon And Other Magnificent 7 Earnings: &#8216;The Seven Truly Did Acquit Themselves Well&#8217;</a>
Image: Shutterstock

Analyst Ratings

AAPL

AMZN

GOOG

GOOGL

MSFT

Tech Rally Or Dotcom Déjà Vu? The Magnificent Seven's Secret Sauce Unveiled

The S&amp;P 500 index, a bellwether for the U.S. stock market, ends February with a 5.3% surge, marking its fourth <a href="https://www.benzinga.com/markets">consecutive month of gains.</a>
Since the tumultuous days of late October, the broader stock market rally now nears an impressive 25% increase.
The tech-heavy Nasdaq 100 also paints a picture of extraordinary resilience. It surpassed the 18,000-point mark and closed the month at an all-time high. The surge in the Nasdaq 100, up 28% since late October, offers a testament to the unwavering appetite for tech-oriented investments. 
See Also: <a href="https://www.benzinga.com/markets/equities/24/02/37062104/joe-biden-says-stock-market-strength-is-sign-of-confidence-in-americas-economy-good-news">Joe Biden Says Stock Market Strength Is &#8216;Sign Of Confidence&#8217; In America&#8217;s Economy: &#8216;Good News&#8217;</a>
Within the captivating realm of exchange-traded funds (ETFs), here we highlight those commanding the largest influx of money throughout February.
Among these standouts, six offer exposure to broader equity indices, two pivots towards Treasury bonds, while one extends its focus on Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>).
<h3 class="wp-block-heading">Top 10 US ETFs By Inflows In February</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF</th>
<th>Fund Flows (1M)</th>
<th>AUM</th>
</tr>
</thead>
<tbody>
<tr>
<td>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</td>
<td>6.815B</td>
<td>413.71B</td>
</tr>
<tr>
<td>iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>)</td>
<td>5.881B</td>
<td>442.69B</td>
</tr>
<tr>
<td>Vanguard Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>)</td>
<td>5.786B</td>
<td>69.413B</td>
</tr>
<tr>
<td>iShares Bitcoin Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IBIT#NYSE">IBIT</a>)</td>
<td>3.891B</td>
<td>8.07B</td>
</tr>
<tr>
<td>Vanguard Intermediate-Term Treasury ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGIT#NYSE">VGIT</a>)</td>
<td>3.1B</td>
<td>24.816B</td>
</tr>
<tr>
<td>SPDR Portfolio S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPLG#NYSE">SPLG</a>)</td>
<td>3.066B</td>
<td>31.938B</td>
</tr>
<tr>
<td>Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>)</td>
<td>2.819B</td>
<td>374.803B</td>
</tr>
<tr>
<td>iShares Core U.S. Aggregate Bond ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGG#NYSE">AGG</a>)</td>
<td>2.348B</td>
<td>101.583B</td>
</tr>
<tr>
<td>Invesco QQQ Trust, Series 1 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>)</td>
<td>1.874B</td>
<td>252.624B</td>
</tr>
<tr>
<td>iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>)</td>
<td>1.566B</td>
<td>48.99B</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Source: TradingView</figcaption></figure>
On Friday, Feb. 9, the S&amp;P 500 index <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37041128/s-p-500-claims-5-000-as-tech-soars-bitcoin-rockets-above-47-000-whats-driving-marke" target="_blank" rel="noreferrer noopener">topped 5,000 for the first time</a>.
This milestone prompted remarks from President Joe Biden. &#8220;The stock market going strong is a sign of confidence in America's economy,&#8221; he said on social media.
Now Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37402333/exclusive-magnificent-7-takes-center-stage-in-roundhills-expanded-etf-lineup-with-i">EXCLUSIVE: Magnificent 7 Takes Center Stage In Roundhill&#8217;s Expanded ETF Lineup With Inverse And Leveraged Options</a>
Image: Shutterstock

SPLG

iShares Trust Barclays 20+ Year Treasury Bond Fund

VGIT

Investors Poured Nearly $40B Into 10 ETFs In February: Find Out What You're Overlooking

Joe Biden defeated Donald Trump in the 2020 presidential election to become the 46th president of the U.S. The two candidates currently stand as the leading contenders for their respective parties for the <a href="https://www.benzinga.com/topic/2024-election">2024 presidential election.</a>
Here's a look at how the stock market has performed since Biden took office and how it compares to the time Trump was in office.
 What Happened: Biden<a href="https://www.benzinga.com/news/20/11/18261020/joe-biden-wins-2020-presidential-election-as-donald-trump-pushes-lawsuits-recounts"> was sworn in as president</a> on Jan. 20, 2021 with an inauguration ceremony at the U.S. Capitol building.
The markets rallied after Biden won the 2020 presidential election on Nov. 3, 2020, and continued upwards during his first year as president. The S&amp;P 500 gained 37.4% during <a href="https://www.benzinga.com/news/22/01/25137004/biden-vs-trump-how-did-stock-market-returns-compare-after-their-first-year-as-president">Biden's first year</a> in office, which was the best one-year market return under a president since Harry Truman in 1945.
In 2022, the S&amp;P 500 experienced a decline of over 19%, representing the largest annual drop since 2008.
The early years of Biden's presidency were met with several economic hardships including the recovery from the COVID-19 pandemic and a period of high inflation.
The economy remains a key issue for voters ahead of the 2024 election, and some have blamed Biden for not doing enough to help consumers who are struggling with higher prices and living expenses.
A recent Morning Consult poll of voters in the seven swing states determined the <a href="https://www.benzinga.com/general/politics/24/02/36917292/trump-dominates-biden-in-swing-states-how-these-2-big-issues-could-change-the-2024-presidential-">economy as the biggest factor </a>for the 2024 election at 36% of the vote, ranking ahead of immigration (13%), democracy (11%) and abortion (6%) as the top issue.
The economy ranked first in each of the seven states and voters said they were more confident in Trump when it came to the economy.
The stock market's performance during previous presidencies has been a hot topic of late with Biden launching <a href="https://www.benzinga.com/news/23/12/36272093/biden-trolls-trumps-prediction-highlights-stock-market-success-in-latest-campaign-video-good-one-don">a campaign video </a>that highlights the stock market indexes, like the S&amp;P 500 hitting all-time highs.
The video is a response to Trump's prediction that there would be an economic downturn with Biden in office.
"Good one, Donald," Biden's X account said while sharing the video.
Related Link:<a href="https://www.benzinga.com/markets/equities/24/01/36751463/joe-biden-mocks-trump-for-forecasting-a-stock-market-collapse-akin-to-the-great-depression-good-"> Joe Biden Mocks Trump For Forecasting A Stock Market Collapse Akin To The Great Depression: &#8216;Good One, Donald&#8217;</a>
 Investing $1,000 in S&amp;P 500: The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which tracks the S&amp;P 500 Index, opened for trading at $381.11 on Jan. 20, 2021, the day Biden was inaugurated as the 46th president of the U.S.
A $1,000 investment could have purchased 2.62 SPY shares on inauguration day. The investment would be worth $1,330.33 today, based on a price of $507.76 for the SPY at the time of writing.
An investment of $1,000 would have increased by 33.0% since Biden assumed the presidency. This return comes shortly after the two-year anniversary of Biden taking office. The average yearly gain during Biden's tenure stands at around 15.9% for the past 25 months.
During Trump&#8217;s four years as president, the S&amp;P 500&nbsp;<a href="https://www.benzinga.com/markets/futures/18/01/11066769/the-stock-markets-rally-under-trump-among-the-best-ever-heres-how-his" target="_blank" rel="noreferrer noopener">had average annual gains</a>&nbsp;of 14.5%. The SPDR S&amp;P 500 ETF Trust was up a <a href="https://www.cnn.com/2021/01/20/investing/dow-stock-market-trump-presidency/index.html#:~:text=Between%20Trump's%20inauguration%20in%202017,its%20worst%20day%20in%20decades.">total of around</a> 67% during the four years under Trump, making it one of the best four-year returns for the S&amp;P 500 in recent history.
Although Biden can point to higher stock market prices and record peaks during his tenure, the stock market's overall performance and annual average returns under Trump still surpassed those during Biden's time in office.
As the 2024 presidential election approaches, the economy and stock market returns are likely to become key topics of discussion.
Investors who expect the stock market to continue to hit new highs in 2024 will likely look at broad market index ETFs like the SPY or the&nbsp;iShares S&amp;P 500 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) or the&nbsp;Vanguard S&amp;P 500 ETF&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>).
Read Next: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/23/12/36416440/why-buy-stocks-in-a-presidential-election-year-history-has-a-crazy-stat-for-you">Why Buy Stocks In A Presidential Election Year? History Has A Crazy Stat For You</a>
Photo: Shutterstock

Education

Politics

If You Invested In The S&P 500 When Joe Biden Became President, Here's How Much You'd Have Today

Investing in your 40s can be a daunting task, especially for those who are relatively <a href="https://www.benzinga.com/topic/retail-investors">new to the game</a>. 
A Reddit user, u/kickinwood, recently reached out to the community seeking advice beyond the hunt for the &#8220;next NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>).&#8221; 
The post received several thoughtful responses, providing valuable insights into general market strategies and <a href="https://www.benzinga.com/topic/investing">specific investment recommendations</a>.
<figure class="wp-block-embed is-type-rich is-provider-reddit wp-block-embed-reddit"> 
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<blockquote class="reddit-embed-bq" style="height:316px" ><a href="https://www.reddit.com/r/stocks/comments/1apm9zg/any_tips_beyond_whats_the_next_nvidia/">Any tips beyond &#8220;What&#8217;s the next Nvidia?&#8221;</a> by<a href="https://www.reddit.com/user/kickinwood/">u/kickinwood</a> in<a href="https://www.reddit.com/r/stocks/">stocks</a></blockquote>
<script async src="https://embed.reddit.com/widgets.js" charset="UTF-8"></script></div>
</figure>
One Redditor, fortinvestech, shared advice tailored to someone in their 40s, emphasizing the importance of being aggressive until retirement or needing a higher level of safety. 
The suggestion included allocating funds into sectoral ETFs, with a focus on tech and hardware for growth, high-dividend ETFs for income, and a small position in the S&amp;P 500 Index. This approach aims to balance growth and safety, gradually increasing exposure to the S&amp;P 500 over time.
The SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) are some popular ways to gain exposure to the S&amp;P 500.
Another Redditor, msalem311, recommended JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/JEPQ#NASDAQ">JEPQ</a>), a Nasdaq-tracking ETF with lower volatility and a respectable 8% dividend yield. The user, who identified as a financial advisor, highlighted JEPQ as a balanced option for both growth and income.
Pentaborane stressed the importance of thorough research for effective stock picking, suggesting a focus on specific sectors and companies with strong leadership and revenue potential at scale. Recommendations included companies like UiPath Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PATH#NYSE">PATH</a>), Photronics Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PLAB#NASDAQ">PLAB</a>), and Camtek Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CAMT#NASDAQ">CAMT</a>) as well as those in the Nvidia supply chain like ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) and Super Micro Computer Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>).
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36749218/asml-stock-top-analyst-pick-as-a-fifo-beneficiary-with-21-upside-ahead-of-q4-earnin">ASML Stock: Top Analyst Pick As A &#8216;FIFO&#8217; Beneficiary With 21% Upside Ahead Of Q4 Earnings</a>
Another Reddit member, jhuey0991, shared personal success stories, emphasizing the profitability of investing in companies facing short-term challenges but with strong fundamentals. 
Examples included AbbVie Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABBV#NYSE">ABBV</a>), Walt Disney (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>), Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>), RTX Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RTX#NYSE">RTX</a>), and Medtronic PLC (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MDT#NYSE">MDT</a>). The Redditor also expressed confidence in Rocket Lab USA Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RKLB#NASDAQ">RKLB</a>) and PayPal Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PYPL#NASDAQ">PYPL</a>), particularly if the latter rebranded to Venmo.
 For justbrowsinginpeace, Rocket Lab is worth considering because the space industry is the &#8220;next gold rush.&#8221;
Overall, the responses provided a mix of general investment strategies and specific stock recommendations, emphasizing the importance of diversification, research, and a balanced approach tailored to individual risk tolerance and financial goals. 
These insights serve as a valuable resource for those navigating the complexities of investing later in life.
Read Next: <a href="https://www.benzinga.com/markets/24/02/36939451/should-you-invest-in-stocks-at-all-time-highs">Should You Invest In Stocks at All-Time Highs?</a>
Image: Shutterstock

ABBV

ASML

CAMT

JEPQ

PATH

PLAB

PYPL

RKLB

SMCI

Beyond Nvidia: How To Navigate Investing In Your 40s — Insights From Reddit

The first U.S-based exchange-traded fund celebrates another birthday Monday and remains one of the <a href="https://www.benzinga.com/etfs">most popular ETFs today.</a>
Here's a look at the history of the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and how much an investment at launch would be worth today.
What Happened: Launched with seed funding of $6.5 million, the SPDR S&amp;P 500 ETF Trust<a href="https://www.benzinga.com/news/23/01/30529288/worlds-first-etf-turns-30-heres-how-much-money-youd-have-if-you-invested-1-000-when-it-launched"> became the first U.S. ETF </a>on Jan. 22, 1993.
The ETF was approved by the U.S. Securities and Exchange Commission several years after State Street Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) applied for the fund.
Initial interest in the ETF was poor and the fund was almost closed before investors came around to the idea of using ETFs as investment vehicles.
The success of the SPY ETF led to other financial institutions launching similar ETFs that track the S&amp;P 500 Index, one of the largest and most well-known stock market indexes.
The iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and Vanguard S&amp;P 500 Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) launched in 2000 and 2010, respectively.
Today, the three ETFs that track the S&amp;P 500 are the largest in the world according to <a href="https://etfdb.com/compare/market-cap/">ETFDB </a>with the following assets under management:
SPY: $474 million
IVV: $405 million
VOO: $377 million
After posting its worst one-year performance in more than a decade for the 2022 year, the S&amp;P 500 Index, which features 500 leading U.S. publicly traded companies, with a primary emphasis on market capitalization, saw outperformance in 2023, ending the year up over 20% and riding a streak of winning weeks.
Last week, the S&amp;P 500 <a href="https://www.benzinga.com/markets/equities/24/01/36701851/s-p-500-shatters-records-the-top-performing-stocks-in-january-2024">hit a new all-time high,</a> boosted by soaring valuations for technology stocks, particularly those with increased exposure to the growing artificial intelligence segment.
Here are the current top <a href="https://www.ssga.com/us/en/institutional/etfs/funds/spdr-sp-500-etf-trust-spy">holdings </a>of the SPDR S&amp;P 500 ETF at the time of writing:
<ol>
<li>Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>): 7.3%</li>
<li>Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>): 6.9%</li>
<li>Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>): 3.9%, both classes of stock</li>
<li>NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>): 3.6%</li>
<li>Amazon.com, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>): 3.5%</li>
</ol>
Related Link: <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/23/12/36416440/why-buy-stocks-in-a-presidential-election-year-history-has-a-crazy-stat-for-you">Why Buy Stocks In A Presidential Election Year? History Has A Crazy Stat For You</a>
Investing $1,000 in SPY Stock: While the idea of ETFs was new at the time, investors who followed State Street into the idea of a new investment vehicle to track the S&amp;P 500 would have been pleasantly rewarded.
The SPDR S&amp;P 500 ETF traded at around $43.61 in its first days of trading. A $1,000 investment could have purchased 22.93 shares at the time.
The $1,000 investment would be worth $11,087.34 today based on a price of $483.53 for the SPY at the time of writing. This represents a hypothetical return of $1,008.7% over the past 31 years.
Investors who bought the SPY on Jan. 22, 1993, based on a price of $25.02 adjusted for dividends would have an even larger return. The SPY has an adjusted price of $25.02 when adjusted for dividends, which means a $1,000 investment could have purchased 39.97 shares.
The $1,000 investment would be worth $19,326.69 today. This represents a hypothetical return of 1,932.7% over the past 31 years.
Read Next: <a href="https://www.benzinga.com/23/12/36062039/where-is-s-p-500-headed-in-2024">Where Is S&amp;P 500 Headed In 2024?</a>
Photo: Shutterstock

Happy Birthday S&P 500 SPY ETF! If You Invested $1,000 In SPY At Launch, Here's How Much You'd Have Today

The S&amp;P 500 Index, a widely-followed gauge of the U.S. stock market, achieved a fresh <a href="https://www.benzinga.com/markets/equities/24/01/36699753/s-p-500-nasdaq-jointly-hit-new-all-time-highs-as-ai-driven-stocks-defy-gravity-whats-driving-mar">all-time high Friday</a>. The index reached a level of 4,826 during intraday trading, surpassing previous peak levels seen over two years <a href="https://www.benzinga.com/markets">ago on Jan. 4, 2021</a>.
Similarly, the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), which closely mirrors the index&#8217;s performance, marked a new all-time high of $481 on Dec. 19. 
Other ETFs tracking the S&amp;P 500, such as the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), also achieved new highs of $483.29 and $441.98, respectively.
The S&amp;P 500 is up 18% since its October 2023 lows and 23% compared to the same day last year. 
The broader U.S. stock market is on course to conclude its 11th positive week out of the last 12, highlighting the impressive winter rally.
<h3 class="wp-block-heading">Chart: S&amp;P 500 Sets New Record Highs</h3>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="452" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/19145141/Screenshot-2024-01-19-alle-18.51.24-1024x452.png" alt="" class="wp-image-188220" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/19145141/Screenshot-2024-01-19-alle-18.51.24-1024x452.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/19145141/Screenshot-2024-01-19-alle-18.51.24-300x133.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/19145141/Screenshot-2024-01-19-alle-18.51.24-768x339.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/19145141/Screenshot-2024-01-19-alle-18.51.24-1536x678.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/19145141/Screenshot-2024-01-19-alle-18.51.24.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h3 class="wp-block-heading">Key Drivers Behind The Surge</h3>
Three key dynamics have fueled U.S. stocks over the last quarter: 
<ol>
<li>Tech stocks&#8217; impressive performance. </li>
<li>Inflation coming down, economy holding up.</li>
<li>Markets pricing Fed rate cuts.</li>
</ol>
<h3 class="wp-block-heading">Tech Stocks Drive The Rally</h3>
Technology stocks have been the driving force behind the surge of the S&amp;P 500 to new all-time highs. The technology sector carries a significant weight of 30% within the S&amp;P 500, and when combined with communication services stocks, their collective weight approaches nearly 40%.
With the Nasdaq 100 Index also reaching record highs and tech stocks outperforming the overall market, the S&amp;P 500 experienced upward pressure.
Remarkably, an equally-weighted index comprising the &#8220;Magnificent Seven,&#8221; which includes companies like Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>), Amazon Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Meta Platforms Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), and Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>), has surged by an impressive 110%.
A significant contributing factor to the broader tech rally has been the ascension of artificial intelligence. Within this context, the semiconductor industry has emerged as the standout performer, driven by surging demand for chips.
<h3 class="wp-block-heading">Inflation Falls, Consumers Show Resilience</h3>
The U.S. inflation rate has experienced a significant decline since reaching its peak in June 2022. In December, the annual inflation rate stood at 3.4%, nearly half the increase compared to the previous year. This development has sparked optimism among investors that price pressures are on track to align with the Fed&#8217;s 2% target.
The U.S. consumer sector and labor market have displayed remarkable resilience despite elevated interest rates.
Retail sales were 5.6% higher in December 2023 compared to the previous year, setting a <a href="https://www.benzinga.com/markets/equities/24/01/36659850/annual-retail-sales-surge-by-5-6-in-december-hit-10-month-high-showcase-robust-consumer-demand">10-month record increase. </a>
Consumer confidence, as measured by the University of Michigan&#8217;s index, exceeded expectations in January, reaching levels not seen in over two-and-a-half years.
The job market continues to exhibit robust health, with the U.S. economy adding 216,000 jobs in December 2023, surpassing the expected 170,000, and weekly jobless claims falling to their lowest levels since September 2022.&#8221;
Read also: <a href="https://www.benzinga.com/markets/equities/24/01/36697268/us-consumer-sentiment-tops-estimates-in-january-hits-highest-level-since-july-2021-fridays-econo">US Consumer Sentiment Tops Estimates In January, Hits Highest Level Since July 2021: Friday&#8217;s Economic Digest</a>
<h3 class="wp-block-heading">Markets Betting On Rate Cuts</h3>
In December, the Federal Reserve decided to keep interest rates unchanged for the third consecutive meeting, effectively signaling the end of its policy tightening cycle. Fed Chair Jerome Powell has expressed openness to potential rate cuts in 2024 provided that economic data supports the Fed&#8217;s efforts to bring inflation back to its target level.
According to the Federal Reserve&#8217;s economic projections, the median expectation is for three rate cuts in 2024.
Market expectations have moved ahead of the Fed&#8217;s stance, with investors pricing in more aggressive rate cuts than what the Fed forecasted in December.
The market is betting on a 50-50 chance the Fed will initiate rate cuts in March, and markets are pricing in a total of six rate cuts by December 2023.
Read now: <a href="https://www.benzinga.com/markets/equities/24/01/36699753/s-p-500-nasdaq-jointly-hit-new-all-time-highs-as-ai-driven-stocks-defy-gravity-whats-driving-mar">S&amp;P 500, Nasdaq Jointly Hit New All-Time Highs As AI-Driven Stocks Defy Gravity: What&#8217;s Driving Markets Friday?</a>
Staff writer Surbhi Jain contributed to this report. 
Photo: Shutterstock.

Macro Economic Events

Econ #s

Market-Moving Exclusives

ANET

FICO

INTU

PANW

S&P 500 Index Reaches All-Time Highs: AI, Rate Cut Hopes Cement The Milestone

2023 was a good year for the stock market, as the broad market S&amp;P 500 Index, and ETFs tracking it such as the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) ending the <a href="https://www.benzinga.com/topic/s-p-500-index">year with 25% gains</a>. 
Last year&#8217;s stock market returns were primarily driven by the Technology sector which gained over 55% on aggregate, and the Communication Services sector which rose about 50% on average. Investors are now wondering which sectors will shine in 2024.
Also Read: <a href="https://www.benzinga.com/markets/equities/24/01/36472187/soft-landing-dont-bet-on-it-just-yet-feds-barkin-indicates-further-rate-hikes-possible">Soft Landing? Don&#8217;t Bet On It Just Yet: Fed&#8217;s Barkin Indicates Further Rate Hikes Possible</a>
According to Fidelity&#8217;s sector managers, the sectors that will lead and those that will lag may depend in large part on macroeconomic considerations. If the U.S. avoids a recession and achieves a &#8216;soft landing,&#8217; the most compelling potential <a href="https://www.fidelity.com/learning-center/trading-investing/outlook-sectors">opportunities</a> for this year lie in the following cyclical sectors:
<ul>
<li>Materials</li>
<li>Industrials</li>
<li>Consumer discretionary</li>
</ul>
<h2 class="wp-block-heading">Materials</h2>
The materials sector usually aligns with the economic cycle, riding the waves of overall economic growth. Although the sector showed positive yet slow returns last year due to worries about a possible recession, historically, it has excelled during early phases of economic upswings, making it primed for potential recovery. 
Fidelity sees long-term investment potential in a number of segments of the sector that have shown favorable supply-and-demand dynamics, including among copper miners and U.S. chemical manufacturers.
The Materials sector is broadly tracked by the Materials Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) and the Vanguard Materials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VAW#NYSE">VAW</a>). 
<h2 class="wp-block-heading">Industrials</h2>
The industrial sector saw positive, but lagging returns compared to the S&amp;P 500 in 2023 due to investor focus on specific mega-cap growth stocks. Fidelity sees long-term growth in various industrial segments being fueled by investments in onshoring, infrastructure, and sustainability. 
An improved U.S. economy could provide a short-term boost. Opportunities for 2024 include commercial aerospace, utilities infrastructure, residential construction, and shipping companies within this sector. 
Broadly, the Industrials sector is tracked by the SPDR Select Sector Fund &#8211; Industrial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>) and the Vanguard Industrials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VIS#NYSE">VIS</a>).
<h2 class="wp-block-heading">Consumer Discretionary</h2>
The resilience of U.S. consumers throughout 2023 notably contributed to the consumer discretionary sector&#8217;s improved performance. 
Looking ahead to 2024, Fidelity believes this sector&#8217;s trajectory might still hinge on broader factors like the economy&#8217;s health and interest rate trends. Retailers with appealing valuations and defensive business strategies, potentially shielding them from economic downturns, are the ones that could stand out.
The Consumer Discretionary sector is tracked by the SPDR Select Sector Fund &#8211; Consumer Discretionary (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) and the Vanguard Consumer Discretion ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VCR#NYSE">VCR</a>).
Now Read: <a href="https://www.benzinga.com/news/24/01/36528216/us-economy-set-for-soft-landing-as-economists-eye-fed-rate-cuts">US Economy Set For &#8216;Soft Landing&#8217; As Economists Eye Fed Rate Cuts</a>
Photo: Shutterstock

Select Sector SPDR-Consumer Discretionary

2024's Top Sectors For A Soft Landing: 3 Industries Leading The Way

The S&amp;P 500 Index is forecasted to deliver a double-digit increase in earnings per share (EPS) in 2024. This is good news for those invested in funds that <a href="https://www.benzinga.com/topic/s-p-500-index">closely track this index</a> such as the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) or the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). 
However, not all sectors may experience similar growth rates. This variance is what often prompts investors to seek opportunities that encompass multiple high-growth sectors in <a href="https://www.benzinga.com/topic/s-p-500-index">a single fund</a>.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/10073009/SPY-vs-QQQ-change-1-YR-Jan-10.jpeg" alt="" class="wp-image-178276" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/10073009/SPY-vs-QQQ-change-1-YR-Jan-10.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/10073009/SPY-vs-QQQ-change-1-YR-Jan-10-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/10073009/SPY-vs-QQQ-change-1-YR-Jan-10-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
<h2 class="wp-block-heading">Why QQQ Could Outpace SPY In EPS Growth?</h2>
For 2024, the sectors driving double-digit EPS growth, <a href="https://insight.factset.com/2024-outlook-9-views-on-what-to-watch-across-sp-500-earnings-ai-banks-and-more">according</a> to FactSet&#8217;s John Butters include:
<ul>
<li>Healthcare &#8211; broadly tracked by the SPDR Select Sector Fund &#8211; Health Care ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLV#NYSE">XLV</a>)</li>
<li>Communication Services &#8211; tracked by the Communication Services Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>)</li>
<li>Information Technology &#8211; tracked by the SPDR Select Sector Fund &#8211; Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>)</li>
</ul>
Investors have the option to either focus their investments in these sector-specific ETFs for more comprehensive exposure within a particular sector, or they can choose a broad market ETF that leans towards allocations in these sectors.
Enter the Invesco QQQ Trust, Series 1 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and the Invesco NASDAQ 100 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQM#NASDAQ">QQQM</a>). Both these ETFs track the Nasdaq 100 Index.
The QQQ and QQQM ETFs have a substantial allocation, around 69.95% to the healthcare, tech and communication services sector (last updated on Jan. 5, 2024):
<ul>
<li>Technology Services: 33.07%</li>
<li>Electronic Technology: 28.22%</li>
<li>Health Technology: 7.12%</li>
<li>Communications: 1.53%</li>
</ul>
On the other hand, the SPY ETF has a 47.86% allocation towards the these sectors:
<ul>
<li>Technology Services: 19.81%</li>
<li>Electronic Technology: 17.47%</li>
<li>Health Technology: 9.65%</li>
<li>Communications: 0.93%</li>
</ul>
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/12/36389824/s-p-500-stuck-in-4600-4800-limbo-for-2024-wells-fargo-pinpoints-3-favored-sectors-f">S&amp;P 500 Stuck In 4,600-4,800 Limbo For 2024? Wells Fargo Pinpoints 3 &#8216;Favored Sectors&#8217; For Next Year</a>
This indicates that the QQQ and QQQM ETFs may be better poised to benefit from S&amp;P 500 EPS growth compared to the S&amp;P 500 funds themselves. Historically, the Nasdaq-100 Index has shown stronger EPS growth than the S&amp;P 500.
The projected EPS growth is anticipated to accelerate notably throughout 2024, particularly in Q4 2024. QQQ and QQQM are heavily invested in the healthcare, technology, and communication services, which are expected to be key drivers of the S&amp;P 500&#8217;s EPS and revenue growth for the year.
Now Read: <a href="https://www.benzinga.com/general/politics/24/01/36473198/top-stocks-sectors-loved-by-congress-members-who-traded-in-2023-apple-nvidia-microsoft-ford-and-">Top Stocks, Sectors Loved By Congress Members Who Traded In 2023: Apple, NVIDIA, Microsoft, Ford And More Stocks To Watch In 2024</a>
Photo: Shutterstock

QQQM

S&P 500's Projected EPS Growth In 2024: Why QQQ, QQQM Might Lead The Way

The Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) has not been able to move the needle much in 2023. The stock rose just 1.5% as compared to the 25% stride that the broad U.S. stock market took. The S&amp;P 500-tracking SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), all ended <a href="https://www.benzinga.com/topic/s-p-500-index">2023 up about 25%</a>.
<h2 class="wp-block-heading">Executing On Bob Iger&#8217;s Turnaround Plan</h2>
However, as the company begins to implement CEO Bob Iger&#8216;s ambitious strategic turnaround plan, Wall Street observers are eager to see if Disney can shift the tide in its favor in 2024.
A significant indicator of its recovery is the reinstatement of dividends after a three-year hiatus. It serves as a testament to the management&#8217;s confidence in generating robust cash flows. 
While concerns linger about the reliance on legacy content for revenue, confidence is emerging. Disney&#8217;s strategic shifts towards bolstering the streaming business with renowned franchises like Marvel and Star Wars, is signalling a proactive approach to diversifying content.
Disney&#8217;s proactive measures are also extending beyond streaming. The company is investing towards enhancing its theme park experiences and acquiring full ownership of Hulu from Comcast.
Also Read: <a href="https://www.benzinga.com//node/36486147">Reliance, Disney Engage Legal Teams &amp; Begin Antitrust Due Diligence For Indian Media Merger: Report</a>
<h2 class="wp-block-heading">Golden Cross Signals Investor Optimism</h2>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/05082409/DIS-stock-Golden-Cross-Jan-5.jpeg" alt="" class="wp-image-175074" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/05082409/DIS-stock-Golden-Cross-Jan-5.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/05082409/DIS-stock-Golden-Cross-Jan-5-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/05082409/DIS-stock-Golden-Cross-Jan-5-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
Disney&#8217;s stock just made a Golden Cross, which is a bullish indicator from a technical perspective. The 50-day SMA crossing over the 200-day SMA is often interpreted as a potential buy signal, suggesting that there might be an upward trend ahead.
Wall Street too appears bullish on the stock. On Dec. 22, 2023, analyst Barton Crockett of Rosenblatt Securities maintained a Buy on DIS stock with a price target of $112. The stock currently trades around $90, indicating upside potential.
<h2 class="wp-block-heading">Enticing Opportunity Or Risky Bet?</h2>
Investors eyeing Disney have an enticing opportunity, as the company navigates through challenges. Disney&#8217;s stock is currently trading at levels 23% below its 52-week-high. Driven by a clear vision and sound strategic repositioning, the company could be setting the stage for future growth and profitability.
Despite the hurdles in creativity and operational changes, there&#8217;s optimism about Disney&#8217;s path under Iger&#8217;s leadership. The company&#8217;s commitment to strategic acquisitions and a relentless focus on direct-to-consumer streaming services could potentially position Disney as a promising long-term investment prospect.
Now Read: <a href="https://www.benzinga.com/news/24/01/36493584/big-streaming-companies-have-realized-they-need-an-ad-tier-collaborate-with-groupm-to-streamline-ad" target="_blank" rel="noreferrer noopener">Big Streaming Companies Have Realized They Need An Ad Tier; Collaborate With GroupM to Streamline Ad Processes</a>
Photo: Shutterstock

Entertainment

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