2023 is coming to an end. Looking back at the performance of US stocks this year, it can only be described in one sentence: no highest, only higher.
This year is undoubtedly a tech bull year for US stocks. The Nasdaq soared by more than 40%, the S&P 500 index accumulated more than 20%, and the Dow reached a record high. Shorters have suffered heavy losses, and getting punched in the face is the fate of predictors.
After the Fed's policy stance turned dovish in December, the US stock market carnival became even more out of control.
According to Bloomberg statistics, last Friday (15th) alone, the largest ETF in the world$SPDR S&P 500 ETF (SPY.US)$It attracted a huge amount of capital of 20.8 billion US dollars in a single day, marking the largest inflow in a single day since the fund was established in 1993. This is also the highest single-day inflow record for all ETFs.
As the capital market with the richest supply of financial products in the world, the US stock market has the richest range of ETF products. It tracks a variety of assets, and can also add multiple leverage. It is an exaggeration to say that you can't think of it, you can't buy it without you.
Let's review the US stock ETF market trend in 2023 through this article.
01 The top ten surging US stock ETFs
Judging from the US stock ETF growth list, as of December 20, ETFs betting on cryptocurrencies, technology stocks, and the US property market had outstanding performance.
The wave of technology stocks triggered by artificial intelligence became the biggest highlight of US stocks this year, becoming the triple leverage version of the Dona Index$MicroSectors FANG+ Index 3X Leveraged ETN (FNGU.US)$Far ahead, with an increase of nearly 430% during the year; the other level increased by 3 times in FAANG's internal technology stocks$MICROSECTORS FANG & INNOVATION 3X LEVERAGED ETN (BULZ.US)$Over the same period, it surged by more than 360%.
As far as the crypto market is concerned, unlike last year's thrill, this year, after more than half a year of being depressed, it finally hit bottom and rebounded at the end of the year. Bitcoin miner ETF$VALKYRIE BITCOIN MINERS ETF (WGMI.US)$Since the beginning of the year, the increase has been about 260%. Other cryptocurrency ETFs have strengthened at the same time.$VANECK VECTORS DIGITAL TRANSFORMATION ETF (DAPP.US)$,$Global X Blockchain ETF (BKCH.US)$ The same period also increased by more than 250% and 240%, respectively.
Since the Fed's interest rate cut expectations have continued to rise at the end of October, one sector in the US stock market has quietly reached a new high — that is the US housing builder sector where “stock god” Buffett built a new warehouse this year.$Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL.US)$The rising tide has risen by more than 240% since this year. The top ten heavyweight stocks include those newly entered by stock companies this year$D.R. Horton (DHI.US)$,$Lennar Corp (LEN.US)$,$NVR Inc (NVR.US)$These three companies rose by more than 70%, 65%, and 50% respectively during the year.
02 Top Ten US Stock Gold Absorbing ETFs
As of December 20, in the top ten lists with the most capital inflows this year, ETFs that track the S&P 500 index of large-cap stocks have become the main force for gold absorption.
The benchmark for US stock ETFs and the oldest$SPDR S&P 500 ETF (SPY.US)$The increase during the year reached 25%, and was further strengthened by US$50.5 billion. BTIG technical strategist Jonathan Krinsky pointed out that although there is no clear correlation between stock market performance and the massive influx of cash into SPY, the scale of capital invested is really remarkable, which may suggest that investors are desperate to get in (get me in).
Buffett once said, “By investing in index funds on a regular basis, an amateur investor who doesn't understand anything can often beat most professional investors.” And this index actually refers to the S&P 500 Index.
In fact, US stock ETFs are the first type that many new investors will consider when starting to invest, and they are also the first choice for lazy people to invest. Investing in individual stocks takes a lot of time to study stocks. Investing in ETFs to generate passive income can effectively spread investment risks and save a lot of research time.
In fact, Buffett “spoke for” the S&P 500 more than once. In a letter to shareholders in 2014, Buffett once stated, “I put 10% of my cash in government bonds in my will, and the remaining 90% will go to the S&P 500.”
Editor/Corrine