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- “US exceptionalism” continued its strong run in 2024, the S&P 500 gained 25% for the year. Driven by strong performance in the tech sector with continued interest in artificial intelligence (AI) and mega-cap tech stocks including the Magnificent Seven.
- As a result, it is not surprising that US equities and technology funds dominated the list of best performing funds on Endowus Fund Smart in 2024.
- Looking ahead into 2025, it’s difficult to predict where the markets will go next. Instead of attempting to guess the best performing funds year on year, what’s important is to stay invested, disciplined and diversified.
- Click here to get started on your wealth journey with Endowus Hong Kong today.
2024 in review: US exceptionalism continues its run
US exceptionalism continued its strong run in 2024, the S&P 500 gained 25% for the year. However, as many market commentators have noted, it was a narrow rally driven much by the tech sector and continued interest in artificial intelligence and mega-cap tech stocks. The Magnificent 7, accounted for 55% of the S&P 500’s 2024 total return.
Closer to home, although there was a brief rout with a surprise rate hike by the Bank of Japan in July, Japan equities ended the year going up by more than 17%.
On the other hand, it may come as a surprise to some that Chinese equities managed to lock in gains of close to 20% in 2024, following a strong rebound in late September with a surprise stimulus package announcement, albeit momentum has since softened.
Therefore, it is no surprise that most of the top-performing equity funds on Endowus in 2024 were predominantly those focused on US equities or tech.
Here’s a closer look at the list:
Best performing funds of 2024
Top performing equity funds
In the fixed income space, riskier sub-asset classes like frontier markets, emerging markets, and high yield bonds were in the spotlight in 2024.
This outperformance was fueled by investor appetite for risk and a trend of rate cuts throughout the year. In search of higher yields, many investors turned away from developed markets and investment grade, boosting these higher-risk options.
Top performing fixed income funds
Most popular funds on Endowus Fund Smart
For those interested in learning about the most popular fund choices on Endowus Fund Smart, here’s a look at the top three funds that were the most in-demand* among investors across equities, fixed income, cash management, and more.
Equities
Fixed income
Cash management
Others — multi-asset, thematic, and more
*Note: The most popular funds were determined based on the net inflows on Endowus Fund Smart in the 12-month period between 1 Jan 2024 and 31 Dec 2024. This analysis excludes in/outflows through the Endowus discretionary and model portfolios, and only includes retail funds available on Endowus Hong Kong.
Where are we at as 2025 starts?
It’s difficult to predict where the market will go next. Will US exceptionalism continue its stride after two years of 20%+ gains with a new administration change? Will China equities rebound with continued stimulus the government pledges to inject into the 2nd largest economy of the world?
Read more: What Trump’s return could mean for the economy and markets
Those that chased on large caps and technology fared well in the past two years, but history shows that asset class winners could change over time.
Between 2010 to 2024, REITs ranked as the top-3 best performing asset class 8 out of 15 times, yet, in 2020 and 2022 it ranked at the bottom of the pack.
Amid the prevailing uncertainty and unpredictability, one thing remained constant: the value of a disciplined and diversified portfolio. Long-term investors who adhered to this approach have consistently been rewarded.
Instead of getting into an annual guessing routine, try adopting a scientific and evidence-based investing approach that is based on concepts of diversification, compounding and asset allocation.
Read more: Investment lessons from Endowus CEO to start 2025
Customise your portfolios in minutes with Endowus Fund Smart
On Endowus Fund Smart, you can create your own diversified, resilient investment portfolios with 300+ Best-In-Class funds selected by our Investment Office. Browse our complete fund list here.
These funds are selected by applying a strict, institutional-grade screening process that is rigorous, thorough, and continuous — we call this proprietary framework SMART+.
You can also select from our pre-curated suite of portfolios, such as our newly launched Endowus Flagship Portfolios, and other core portfolios focusing on cash management and income needs, as well as satellite thematic portfolios covering Global Technology, Future Trends, Sustainability Equities, and China Equities.
Endowus also offers a broad selection of institutional-grade mutual funds, hedge funds and private markets across private equity, private credit, absolute return multi-strategy hedge funds, exclusive to Professional Investors.
For existing clients, you can verify as a Professional Investor by filling out this opt-in form to access these funds. You can also contact support.hk@endowus.com.
As your conflict-free financial advisor, Endowus remains committed to doing what is always in the best interest of our clients, and to help you achieve better investing outcomes.
Click here to get started on your wealth journey with Endowus Hong Kong today.
Read more:
- Endowus Fund Smart — Most Popular and Best Performing Funds of 1H 2024
- Core-satellite investing with Endowus
- Transfer your fund holdings seamlessly and save up to 50% or more on Endowus HK
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Risk Warnings
Investment involves risk. Past performance is not an indicator nor a guarantee of future performance or returns. Projected performance or returns is not guaranteed to materialise. The value of investments and the income from them can go down as well as up, and you may not get the full amount you invested. Rates of exchange may cause the value of investments to go up or down. Individual stock performance does not represent the return of a fund.
Risk related to discretionary management . As Flagship Portfolios are provided under discretionary services, Endowus will manage the assets under the portfolio subject to compliance with the terms and conditions of the DPM Services Agreement and on a fully discretionary basis; you will not have any role or right to make investment decisions, except for making contributions or withdrawals from the portfolio; it would not be mandatory for Endowus to provide the underlying fund prospectuses or other fund information to you for each and every investment decision made on behalf of you. You should exercise caution before investing in discretionary managed portfolios.
Flagship Portfolio may contain professional-investors only fund(s) and/or “Complex Product”. In general, Professional-investors only funds are funds that have not been authorised, nor have the offering documents been reviewed by the SFC. “Complex Products” (as defined by the Securities and Futures Commission, the “SFC”) refer to investment products (e.g. funds) whose terms, features and risks are not reasonably likely to be understood by retail investors because of their complex structures. Professional-investor only funds and Complex Product in general may have higher risk than other retail and non-complex products. Past performance is not indicative of future performance. All investments involve risks (including the possibility of loss of the capital invested) and the price of fund units may go up as well as down. This fund may invest in financial derivatives which may involve additional risks (e.g. market, counterparty, liquidity, leverage and volatility risks) and lead to higher volatility. In adverse situations, the fund may suffer significant losses. This fund is not principal protected. In the worst-case scenario, you may lose the entire invested amount. Do not invest in a complex product unless you understand and are willing to assume the risks associated with it, including (in some cases) the risk that you may lose more than the invested amount. Please refer to the “Important Information About Funds” for details of the risks involved. If you are in any doubt, you should clarify with us or seek independent professional advice.
General risk warnings relating to collective investment schemes
Before making an investment decision, you are reminded to refer to the relevant prospectus/ offering document for specific risk considerations and related fees and charges. Funds are not a bank deposit and not capital guaranteed, and is subject to investment risks, including the possible loss of the principal amount invested. Some of the funds also involve derivatives. Do not invest in them unless you fully understand and are willing to assume the risks associated with them.
Opinions
Whilst Endowus HK Limited (“Endowus”) has tried to provide accurate and timely information, there may be inadvertent delays, omissions, technical or factual inaccuracies or typographical errors. Any forward-looking statements, prediction, projection or forecast on the economy, stock market, bond market or economic trends of the markets contained in this material are subject to market influences and contingent upon matters outside the control of Endowus HK Limited (“Endowus”) and therefore may not be realised in the future. Further, any opinion or estimate is made on a general basis and subject to change without notice. In presenting the information above, none of Endowus HK Limited, its affiliates, directors, employees, representatives or agents have given any consideration to, nor have made any investigation of the objective, financial situation or particular need of any user, reader, any specific person or group of persons. Therefore, no representation is made as to the completeness and adequacy of the information to make an informed decision. You should carefully consider whether any investment views and products/ services are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances. You may also wish to seek financial advice through a financial advisor or the Endowus platform and independent legal, accounting, regulatory or tax advice, as appropriate.
No invitation or solicitation
Nothing contained in this article should be construed as a solicitation, an offer to buy or sale, or recommendation, to acquire or dispose of any security, commodity, investment or to engage in any other transaction in any jurisdiction in which such solicitation, offer to buy or sale would be unlawful under the securities laws in such jurisdiction. No information included in this article is to be construed as investment advice or as a recommendation or a representation about the suitability or appropriateness of any advisory product or service; or an offer to buy or sell, or the solicitation of an offer to buy or sell, any security, financial product, or instrument; or to participate in any particular trading strategy. Investors should seek independent financial and tax advice before making any investment decision.
Product Risk Rating: Please note that any product risk rating (the “PRR”) provided by us is an internal rating assigned based on our product risk assessment model, and is for your reference only. The PRR is subject to change from time to time. The PRR does not take into account your individual circumstances, objectives or needs and should not be regarded as advice or recommendation to purchase, hold or sell any fund or make any other investment decisions. Accordingly, you should not solely rely on the PRR in making your investment decision in the relevant Fund.
This article has not been reviewed by the Securities and Futures Commission or any regulatory authority in Hong Kong.
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