Investors utilizing exchange-traded funds (ETFs) to access portfolio diversification will often find outsized returns in leveraged products—those seeking to double or triple the daily returns of a given index or other benchmark. However, these funds are highly risky and may also multiply losses, and they are typically only intended for short-term, active trading purposes.
Those investors interested in achieving outperformance with a less-risky, non-leveraged product might consider one based on historical performance. Though past results are no guarantee that one of these leading funds will continue to rise, those timing entry into a position in a momentum fund well do have the opportunity to benefit. Three funds that have performed well in 2024—and which may be able to keep that trend going into the new year—are the Invesco Alerian Galaxy Crypto Economy ETF (BATS: SATO), the Grayscale Future of Finance ETF (NYSEARCA: GFOF), and the ETRACS Alerian Midstream Energy Total Return Index ETN (NYSEARCA: AMTR).
