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- Global markets continued their strong performance in the first half of 2024, with MSCI All Country World Index delivering positive gains of 11.3%, buoyed by strong performance from the US markets.
- AI continued to be a key driving force behind the rally. It is not surprising that technology funds and those that had Nvidia and Magnificent Seven as top holdings dominated the list of best performing funds on Endowus Fund Smart in 1H 2024.
- 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 1H in review: Large caps and technology leading the charge
Global markets continued their strong performance in the first half of 2024, with MSCI All Country World Index delivering positive gains of 11.3%, buoyed by strong performance from the US markets, with the S&P 500 delivering 15.3% in the same period.
AI continued to be a key driving force behind the rally, a trend persisted since late 2022. Key performance contributors to the S&P 500 include the Magnificent Seven and other big tech and semiconductor names such as Broadcom. A total of 50 AI-related companies returned 14.7% collectively, in contrast to the 1.2% decline in the rest of the market in the first half of 2024.
Notably, chipmaker Nvidia briefly became the world’s most valuable listed company in June, on the back of improved earnings following substantial investments in AI.
Read more: Endowus Q2 2024 Market Update and H2 Outlook
As a result, it is no surprise that technology funds and those that had Nvidia and Magnificent Seven as top holdings dominated the list of best performing funds on Endowus Fund Smart in 1H 2024.
Here’s the a closer look at the list:
Best performing funds of 1H 2024
On the other hand, the real estate sector continued to be challenged in the current high interest rates. China funds with conviction on the domestic consumption recovery were also hit with continued weak consumer confidence. Below is the list of worst performing funds on Endowus Fund Smart in 1H 2024.
Worst performing funds of 1H 2024
Most popular funds on Endowus Fund Smart
For those interested to learn about the most popular fund choices on Endowus Fund Smart. Here’s a look at the top 3 funds that were the most in-demand* among investors the various categories 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 6 month period between 1 Jan 2024 and 30 Jun 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 markets headed for the rest of 2024?
It’s difficult to predict where the market will go next. Such difficulty is demonstrated by looking back at historical returns of different asset classes.
Those that chased on global large caps and technology fared well in 1H2024, but history shows that the asset class winner of each year could change dramatically year-on-year. Between 2010 to 2023, REITs ranked as the top-3 best performing asset class 8 out of 14 times, yet, in 2020 and 2022 it ranked at the bottom of the pack.
What’s important is to stay invested, disciplined and diversified. The market has historically rewarded long-term investors who maintain a disciplined and diversified portfolio, which takes advantage of outperformance in one sector and cushions underperformance in another.
As we enter the second half of 2024, some might guess large caps, technology, or Japan and India might continue their winning streaks. Instead of getting into this guessing routine, try adopting a scientific and evidence-based investing approach that is based on concepts of diversification, compounding and asset allocation.
Customise your portfolios in minutes with Endowus Fund Smart
On Endowus Fund Smart, you can create your own diversified, resilient investment portfolios with 200+ 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 PI-only mutual funds, hedge funds and private markets across private equity, private credit, absolute return multi-strategy hedge funds.
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 if in doubt.
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 2023
- Why invest through Endowus
- How your money and assets are kept safe when investing through Endowus
- Introducing Endowus Fund Smart — access top-rated funds in Hong Kong
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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.
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
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 (i) 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.
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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.
Complex Products
Some of the funds contained in this article are complex products and investors should exercise caution when investing in these products. Though these products have been authorised by the SFC, authorization does not imply official recommendation. SFC authorization is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance.
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