This positive momentum will continue through 2025.
BMO’s Brian Belski believes that the benchmark index may reach 6,700 at the end of the year. This would represent a 14% increase.
Investors looking for alternatives that have outperformed the S&P 500 should consider two exchange traded funds: JPMorgan US Research Enhanced Index Equity ETF and Gotham Enhanced 500 ETF.
JPMorgan US Research Enhanced Index Equity ETF JREU
The London exchange traded fund has consistently outperformed S&P 500 since 2019 and is available to the majority of European investors.
This year, it’s also on course to surpass the benchmark index.
JREU has a portfolio of $9.41 Billion in total assets. It uses a “research enhanced Indexing” strategy.
It means that the fund prefers to make several smaller bets rather than a few large ones.
This ETF’s composition is similar to the benchmark, but its REI strategy allows it to generate excess returns. The JPMorgan US Research enhanced index equity fund has risen by more than 26 percent since the beginning of 2024.
Gotham Enhanced ETF 500 (GSPY).
Most brokers offer this actively managed New York listed exchange traded fund to US investors.
The company was established in 2021, and it has consistently outperformed its benchmark.
GSPY is a fund that invests in all stocks included in S&P 500, but it has a few notable changes.
Spending more money on stocks in the S&P500 that are deemed cheaper, and spending less on those that they estimate to be expensive.
The S&P 500 is a benchmark for investors, but this strategy allows it to provide better returns.
Apple Inc. is one of the largest holdings in Gotham Enhanced ETF, followed by Microsoft, Nvidia and Amazon.
Why choose ETFs instead of individual stocks?
ETFs allow you to avoid the headache of selecting individual stocks or managing your portfolio.
A basket of shares can reduce the overall impact of a single investment.
Diversification spreads the risks.
Also, investing in stocks individually can result in high transaction costs, particularly if you are an active trader.
You can also lower your costs by using exchange-traded funds.
You can get exposure to many different sectors with ETFs, and they also offer high liquidity.
You can trade these funds at the market price throughout the day.
Should investors pay attention to this post? These two ETFs outperformed S&P since 2021. This post may change as new updates are released.
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