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The Fund seeks to track the investment results of the S&P 500; the Underlying Index, which measures the performance of the large-capitalization sector of the U.S. equity market, as determined by S&P Dow Jones Indices LLC; the Index Provider or SPDJI.

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탄탄한 수익 성장, 높은 가치 평가, 강력한 혁신 잠재력을 특징으로 하는 성장 주식에 초점을 맞춘 상장지수펀드(ETF)는 6월에 자금 유입이 증가했다. 성장연계 펀드에 대한 관심의 급증은 기술 부문에 대한 투자자의 신뢰 증가와 인공 지능과 같은 파괴적인 혁신을 반영하여 가치주에 비해 성장주의 상당한 성과와 일치했다.

기술, AI로 성장 ETF로 6월 122억 달러 유입, 가치 ETF 대비 기록적인 성과 달성

Analyst Color

운용 자산 기준 세계 최대 규모의 상장지수펀드가 상당한 자본 유출을 겪고 있지만, 이러한 추세가 미국 주식 시장의 성과에 아무런 지장을 주지 않았다.총 5,260억 달러가 넘는 운용자산(AUM)을 보유한 SPDR S&amp;P 500 ETF 트러스트(NYSE:SPY)는 주요 S&amp;P 500 ETF의 지배적 지위에서 밀려날 만큼 상당한 자금 유출을 겪고 있다.

세계 최대 규모의 S&amp;P 500 ETF에서 상당한 자본 유출: 왜 시장이 붕괴되지 않을까?

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억만장자 투자자인 브리지워터 어소시에이츠(Bridgewater Associates)의 설립자인 레이 달리오(Ray Dalio)는 최근 고조되는 미중 간 긴장과 증가하는 글로벌 위험에 직면해 다각화의 중요성을 강조했다. 블룸버그의 보도에 의하면 달리오는 홍콩에서 열린 그리니치 경제 포럼(Greenwich Economic Forum)에서 연설하면서 향후 몇 년간 심각한 경제적, 정치적 격변이 일어날 가능성을 강조했다.

레이 달리오는 미중 경제제재에 대해 경고하며 다양성의 중요성을 강조

BlackRock ETF Trust II iShares Large Cap Deep Buffer ETF

Invivyd Inc

IVIVI TECHNOLOGIES INC by IVIVI Technologies, Inc.

Ivivi Technologies Inc

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iShares Trust iShares S&P 500 BuyWrite ETF

NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) is <a href="https://www.benzinga.com//node/39648016" target="_blank" rel="noreferrer noopener">trading lower today</a>. New Street Research analyst Pierre Ferragu downgraded <a href="https://www.benzinga.com/quote/NVDA/analyst-ratings" target="_blank" rel="noreferrer noopener">NVDA from Buy to Neutral.</a>
In another development, European Union competition chief Margrethe Vestager has reportedly highlighted a significant &#8220;bottleneck&#8221; in the Nvidia AI chips supply.
Despite the concern, regulators have not yet decided on any specific actions to address the issue. Vestager stated that they are still in the preliminary stages of investigation, asking questions but not yet taking regulatory action, reported <a href="https://www.bloomberg.com/news/articles/2024-07-05/nvidia-ai-chips-are-huge-bottleneck-eu-s-vestager-warns?srnd=technology-vp&amp;sref=TBDibEcD" target="_blank" rel="noreferrer noopener">Bloomberg</a>.
Nvidia has become a focal point for regulators due to its significant role in the artificial intelligence (AI) sector. The company&#8217;s GPUs are essential for data centers, making them highly sought after by cloud computing providers.
Nvidia&#8217;s H100 processing units have secured the company over 80% market share, outpacing competitors Intel Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) and Advanced Micro Devices Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>).
Also Read: <a target="_blank" href="https://www.benzinga.com/government/24/07/39646273/is-nvidia-defying-us-export-controls-whats-going-on" rel="noreferrer noopener">Is Nvidia Defying US Export Controls? What&#8217;s Going On?</a>
Vestager mentioned that while secondary markets for AI chips could promote innovation and fair competition, companies with a dominant market position might face future restrictions.
&#8220;If you have that kind of dominant position in the marketplace, there are things that you cannot do that a small company can do,&#8221; she remarked, which the report highlighted.
Demand for the H100 is so high that some customers face a six-month wait to receive it. Nvidia has since released even more advanced versions, including the H200 and Blackwell B100 and B200, which are crucial for <a target="_blank" href="https://www.benzinga.com/news/24/06/39233957/nvidias-ai-chip-the-product-propelling-its-success" rel="noreferrer noopener">companies in the AI race</a>.
Nvidia stock gained over 202% in the last 12 months. Investors can gain exposure to Nvidia through&nbsp;SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>).
<h2 class="wp-block-heading">NVIDIA Stock Prediction 2024</h2>
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Nvidia, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For NVIDIA, the 200-day moving average sits at $72.97, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, which is below the current price of $127.21. For more on charts and trend lines, <a href="https://pro.benzinga.com/">see a description here.</a>
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
Price Action: NVDA shares are trading lower by 0.83% at $127.21 at last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
Read Next:
<ul>
<li><a href="https://www.benzinga.com/news/24/07/39613688/china-files-6x-more-generative-ai-patents-than-us-despite-nvidia-chip-export-ban-un-report" target="_blank" rel="noreferrer noopener">China Files 6X More Generative AI Patents Than US Despite Nvidia Chip Export Ban: UN Report</a></li>
</ul>

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What's Going On With Nvidia Stock On Friday?

Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) is on track to sell $12 billion of artificial intelligence chips in China this year despite the U.S. export controls, the Financial Times <a target="_blank" href="https://www.ft.com/content/b76ef55b-21cd-498b-ac16-5660908bb8d2" rel="noreferrer noopener">reports</a>.
According to analyst forecasts, the company will deliver more than 1 million new H20 chips, designed to circumvent U.S. restrictions on selling AI processors to Chinese customers.
That figure is nearly double what Huawei is expected to sell for its China-made rival product, Ascend 910B, the FT cites SemiAnalysis, chip consultancy estimates.
Each H20 chip costs between $12,000 and $13,000, suggesting Nvidia could generate over $12 billion in sales, surpassing the $10.3 billion revenue from its entire China business in the previous financial year.
Colette Kress, Nvidia&#8217;s finance chief, noted a significant decline in revenue from its data center segment in China following the imposition of new export controls in October.
Before U.S. export controls, China accounted for more than a quarter of Nvidia&#8217;s total revenues. Even if the H20 chip meets analysts&#8217; expectations, China may account for about 10% of sales this year.
Analysts at Morgan Stanley and SemiAnalysis report that the H20 chip is now shipping in volume and is popular among Chinese customers despite its lower performance than Nvidia&#8217;s US-sold chips.
Most Chinese AI companies have built their AI models on Nvidia&#8217;s ecosystem, making a switch to Huawei&#8217;s infrastructure time-consuming and costly.
Despite the restrictions, Nvidia&#8217;s overall revenues from China, including Hong Kong, grew more than 50% year-on-year to $2.5 billion in the most recent quarter.
Recent reports indicated that Nvidia is under scrutiny because of reports of its <a target="_blank" href="https://www.benzinga.com/government/24/07/39616102/despite-restrictions-nvidia-chips-are-still-reaching-china-wsj" rel="noreferrer noopener">advanced AI chips</a> being smuggled into China.
Around 12,500 AI chips are estimated to be smuggled annually, while Nvidia sold over 2.6 million A100 and H100 chips globally last year.
Nvidia stock gained over 203% in the last 12 months. Investors can gain exposure to Nvidia through SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>).
Price Action: NVDA shares were trading lower by 0.76% at $127.40 premarket at the last check on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons

Government

Regulations

Emerging Markets

Is Nvidia Defying US Export Controls? What's Going On?

Micron Technology, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MU#NASDAQ">MU</a>) Chief Business Officer Sumit Sadana expressed his enthusiasm about the company&#8217;s strategic investment in India during a recent <a href="https://www.cnbctv18.com/young-turks/artificial-intelligence-to-boost-healthcare-education-ai-micron-semiconductor-19436620.htm" target="_blank" rel="noreferrer noopener">panel discussion</a>.
What Happened: During the CNBC-TV18 Young Turks&#8217; Voices from the Valley series, CNBC <a href="https://www.cnbctv18.com/technology/voices-from-the-valley-micron-sumit-sadana-india-investment-full-capacity-through-2025-19436622.htm" target="_blank" rel="noreferrer noopener">reported</a> that Micron&#8217;s capacity is fully booked through the end of 2025.
Sadana emphasized AI&#8217;s transformative impact on various sectors, including healthcare and education. He noted that AI can analyze vast datasets to identify trends and develop targeted treatments faster than humans. It can offer personalized learning experiences to address the global teacher shortage.
Sadana acknowledged the need for substantial semiconductor capacity and investment to train large language models (LLMs). He stressed the importance of making these models smarter and more efficient to fully realize AI&#8217;s potential in solving complex problems.
Read: <a href="https://www.benzinga.com/markets/asia/24/07/39595146/trumps-trade-tariffs-would-be-highest-in-the-postwar-period-and-increase-inflation-says-goldman-sach">Trump&#8217;s Trade Tariffs Would Be &#8216;Highest In The Postwar Period&#8217; And Increase Inflation, Says Goldman Sachs Economist</a>
Why It Matters: Various governments are introducing new programs to incentivize domestic semiconductor manufacturing and development.
While these initiatives are beneficial, Sadana cautioned about the need for careful management to balance global supply and demand.
He discussed solutions like high bandwidth memory (HBM) and expanded DRAM capacity to alleviate these issues.
In June, Micron reported <a target="_blank" href="https://www.benzinga.com/news/earnings/24/06/39512382/micron-q3-earnings-revenue-beat-eps-beat-q4-earnings-guidance-expanding-ai-driven-opportunities-ahe" rel="noreferrer noopener">third-quarter revenue</a> of $6.81 billion, beating the&nbsp;analyst consensus estimate&nbsp;of $6.63 billion. Micron reported third-quarter adjusted EPS of $0.62, beating analyst consensus estimates of $0.49.
Price Action:&nbsp;Micron Technology stock gained 106% in the last 12 months. Investors can gain exposure to the stock via iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>).
MU&nbsp;shares traded lower by 1.26% at $129.75 premarket at&nbsp;the last check Tuesday.
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Micron's Strategic India Investment Fuels Market Demand Through 2025: Report

Tom Lee, the managing partner and head of research at Fundstrat Global Advisors, shared his <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39350137/s-p-500-poised-to-extend-bull-run-market-strategist-sees-ai-fervor-and-ebbing-infla">bullish prediction</a> for the S&amp;P 500, foreseeing it reaching 15,000 by 2030 riding the AI wave.
What Happened: Lee&#8217;s forecast is based on the emergence of a new cycle in the stock market, where annual returns are expected to compound at a high rate. This cycle is being driven by the younger generations, particularly millennials and Gen Z.
&#8220;This will be the 3rd time that stocks entered a cycle where annual returns compound at high teens,&#8221; Lee said in an interview with CNBC&#8217;s Last Call. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">.<a href="https://twitter.com/fundstrat?ref_src=twsrc%5Etfw">@fundstrat</a>&#39;s Tom Lee says the S&amp;P 500 will hit 15,000 by 2030. &quot;This will be the 3rd time that stocks entered a cycle where annual returns compound at high teens.&quot; <a href="https://twitter.com/search?q=%24SPX&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$SPX</a> <a href="https://t.co/31vzaEaGpo">pic.twitter.com/31vzaEaGpo</a>
&mdash; Last Call (@LastCallCNBC) <a href="https://twitter.com/LastCallCNBC/status/1806110011669549190?ref_src=twsrc%5Etfw">June 26, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The growth of companies focused on artificial intelligence is expected to yield high returns, according to Lee. Additionally, the increasing number of digital laborers investing in the economy is contributing to this cycle.
S&amp;P 500 ETF options provide investors with <a href="https://www.benzinga.com/money/best-sp-500-etfs">multiple ways to invest</a> in America&#8217;s largest 500 companies. Interested investors may check out the Schwab U.S. Large-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHX#NYSE">SCHX</a>), Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), and iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) to diversify their portfolios.
See Also: <a href="https://www.benzinga.com/news/24/06/39493328/hillary-clinton-offers-advice-to-biden-ahead-of-presidential-debate-its-a-waste-of-time-to-try-to-re?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Hillary Clinton Offers Advice To Biden Ahead Of Presidential Debate: &#8216;It&#8217;s A Waste Of Time To Try To Refute Mr. Trump&#8217;s Arguments&#8217;</a>
Why It Matters: Lee&#8217;s prediction is in stark contrast to the forecasts of other financial experts. In May, Goldman Sachs predicted a <a href="https://www.benzinga.com/markets/equities/24/05/38863242/stock-market-rally-for-2024-has-peaked-goldman-sachs-forecasts-flat-return-from-now-till-the-end">flat return for the S&amp;P 500</a> for the remainder of 2024, suggesting that the stock market rally had peaked. However, Lee&#8217;s forecast indicates a more extended period of growth.
Another analyst, Gene Munster, predicted that the stock market would continue to rise for <a href="https://www.benzinga.com/markets/equities/24/05/38910879/stock-market-to-rally-for-3-5-years-before-ai-bubble-bursts-predicts-veteran-analyst-gene-munste">another three to five years</a> before an AI bubble bursts. This aligns with Lee&#8217;s forecast of a sustained period of growth driven by AI-focused companies.
However, not all experts share this optimistic outlook. Economist Harry Dent warned of a <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39257592/economist-warns-crash-of-a-lifetime-is-coming-predicts-s-p-500-to-plummet-86-from-t">looming &#8220;crash of a lifetime&#8221;</a> due to the current &#8220;everything&#8221; bubble, which he believes has yet to burst. Despite this, Lee&#8217;s prediction suggests a period of sustained growth, particularly in the AI sector.
Read Next: <a href="https://www.benzinga.com/news/24/06/39516013/mark-cuban-accuses-trump-of-ripping-off-thousands-of-hard-working-americans-and-not-wanting-to-leave?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Mark Cuban Accuses Trump Of Ripping Off &#8216;Thousands Of Hard Working Americans&#8217; And Not Wanting To Leave The White House</a>
Image Via Shutterstock 
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Kaustubh-Bagalkote" target="_blank" rel="noreferrer noopener">Kaustubh Bagalkote</a>

Guidance

SCHX

Fundstrat's Tom Lee Predicts S&P 500 Will Hit 15,000 By 2030 Driven By Gen Z And AI Wave

Exchange-traded funds (ETFs) focused on growth equities &#8211; characterized by robust revenue growth, high valuations, and strong potential for innovation – experienced elevated <a href="https://www.benzinga.com/etfs">inflows in June.</a>
This surge in interest towards growth-linked funds coincided with a significant outperformance of growth over value stocks, reflecting increased investor confidence in the tech sector and disruptive innovations like artificial intelligence.
The eight largest growth-linked ETFs by assets under management (AUM) collectively experienced a substantial $12.2 billion in inflows from the beginning of the month through June 24.
Leading the pack, the Vanguard Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VUG#NYSE">VUG</a>) saw the highest monthly inflows among its peers, attracting an impressive $5.68 billion. This remarkable figure is set to mark the Vanguard Growth ETF&#8217;s record monthly inflows, ranking second in June only to the nearly $10 billion attracted by the broader iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). 
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>Growth ETF</th>
<th>AUM</th>
<th>June Flows (as of June 24)</th>
</tr>
</thead>
<tbody>
<tr>
<td>Vanguard Growth ETF </td>
<td>$139.84B</td>
<td>$5.68B</td>
</tr>
<tr>
<td>IShares Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWF#NYSE">IWF</a>)</td>
<td>$97.00B</td>
<td>$0.03B</td>
</tr>
<tr>
<td>IShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>)</td>
<td>$52.96B</td>
<td>$4.01B</td>
</tr>
<tr>
<td>Schwab U.S. Large-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHG#NYSE">SCHG</a>)</td>
<td>$30.62B</td>
<td>$0.44B</td>
</tr>
<tr>
<td>SPDR Portfolio S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPYG#NYSE">SPYG</a>)</td>
<td>$29.40B</td>
<td>$0.47B</td>
</tr>
<tr>
<td>Vanguard Mega Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGK#NYSE">MGK</a>)</td>
<td>$22.39B</td>
<td>$1.08B</td>
</tr>
<tr>
<td>Vanguard Russell 1000 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VONG#NYSE">VONG</a>)</td>
<td>$20.81B</td>
<td>$0.08B</td>
</tr>
<tr>
<td>IShares Core S&amp;P U.S. Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IUSG#NYSE">IUSG</a>)</td>
<td>$18.94B</td>
<td>$0.15B</td>
</tr>
<tr>
<td>Vanguard Small-Cap Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VBK#NYSE">VBK</a>)</td>
<td>$17.25B</td>
<td>$0.26B</td>
</tr>
</tbody>
<tfoot>
<tr>
<td>Total</td>
<td></td>
<td>$12.2B</td>
</tr>
</tfoot>
</table>
<figcaption class="wp-element-caption">Source: TradingView</figcaption></figure>
<h3 class="wp-block-heading">Growth Stocks Surge To Record Highs Against Value</h3>
The Vanguard Growth ETF&#8217;s relative performance against its counterpart, the Vanguard Value ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTV#NYSE">VTV</a>), set new record highs in June, surpassing the previous peaks achieved in November 2021, as illustrated in the chart below, <a href="https://www.benzinga.com/pro/register0524b?utm_source=BZprocontent062524&amp;t=be2bearmibe3na1">sourced from Benzinga Pro.</a>
The primary drivers of the growth style&#8217;s outperformance in June were tech giants Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) and Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), which saw robust rallies of 15% and 8.8%, respectively. 
<figure class="wp-block-image size-large"><a href="https://www.benzinga.com/pro/register0524b?utm_source=BZprocontent062524&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="460" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1024x460.png" alt="" class="wp-image-405212" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1024x460.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-300x135.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-768x345.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56-1536x690.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/25160222/image-56.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>
Read Next:
<ul>
<li> <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39440559/growth-stocks-leave-value-stocks-in-the-dust-4-reasons-for-biggest-monthly-lead-in-">Growth Stocks Leave Value Stocks In The Dust: 4 Reasons For Biggest Monthly Lead In Over A Year</a></li>
</ul>
Image generated using artificial intelligence via Midjourney.

Tech, AI Drive $12.2B Inflows Into Growth ETFs, Marking Record Outperformance Over Value

Editor&#8217;s Note: This article has been updated to correct the spelling of the analyst&#8217;s name and the associated website.
The world&#8217;s largest exchange-traded fund by assets under management is experiencing significant capital outflows, yet this trend is not minimally disrupting the U.S. <a href="https://www.benzinga.com/markets">stock market&#8217;s performance.</a>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), with over $526 billion in AUM, is undergoing a substantial outflow that could dethrone it as the leading S&amp;P 500 ETF.
Year-to-date, outflows have exceeded $40 billion, while in June 2024 only, the SPY ETF experienced $26.6 billion in outflows.
With seven trading days remaining, this could be its second-worst month for outflows, surpassed only by January 2015. 
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="500" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20150049/image-48-1024x500.png" alt="" class="wp-image-397883" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20150049/image-48-1024x500.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20150049/image-48-300x147.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20150049/image-48-768x375.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20150049/image-48-1536x750.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/20150049/image-48.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Sumit Roy, senior ETF analyst at etf.com, remarked, &#8220;On the surface, such massive outflows for SPY are strange to see in a year in which the S&amp;P 500 is hitting record highs. But SPY isn't like most other S&amp;P 500 ETFs.&#8221;
As the expert noted, a diverse range of market participants uses the SPY fund to express their views, from short-term traders to long-term investors. It also boasts the most extensive options market of any ETF.
In contrast, other popular S&amp;P 500 ETFs like the Vanguard 500 Index Fund ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) and the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) tend to attract a narrower group of predominantly long-term investors, Roy added.
<h1 class="wp-block-heading">Comparing Costs And Fund Flows</h1>
An in-depth analysis of these three major ETFs tracking the S&amp;P 500 reveals that the SPY ETF has the highest costs. The SPY&#8217;s expense ratio, which represents the annual fee investors pay to the fund&#8217;s managers, is 0.09%, three times higher than the Vanguard 500 Index Fund and the iShares Core S&amp;P 500 ETF.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF</th>
<th>Expense Ratio</th>
</tr>
</thead>
<tbody>
<tr>
<td>SPDR S&amp;P 500 ETF Trust</td>
<td>0.09%</td>
</tr>
<tr>
<td>Vanguard 500 Index Fund ETF</td>
<td>0.03%</td>
</tr>
<tr>
<td>iShares Core S&amp;P 500 ETF</td>
<td>0.03%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: etf.com</figcaption></figure>
The Vanguard 500 Index Fund ETF is currently on an 18-month streak of positive monthly inflows, drawing $45 billion year-to-date. The iShares Core S&amp;P 500 ETF recorded $20.8 billion in inflows year-to-date.
<figure class="wp-block-table is-style-stripes"> 
<table>
<thead>
<tr>
<th>ETF</th>
<th>Year-to-Date Fund Flows</th>
</tr>
</thead>
<tbody>
<tr>
<td>SPDR S&amp;P 500 ETF Trust</td>
<td>-$41.5 billion</td>
</tr>
<tr>
<td>Vanguard 500 Index Fund ETF</td>
<td>$45.4 billion</td>
</tr>
<tr>
<td>iShares Core S&amp;P 500 ETF</td>
<td>$20.8 billion</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: Tradingview</figcaption></figure>
This indicates investors are likely fleeing the SPY due to its higher costs, transferring their funds to lower-cost ETFs tracking the same index.
This migration explains why the broader U.S. stock market remains unaffected by the heavy outflows from the world&#8217;s largest ETF. 
The inflows into the Vanguard and iShares ETFs have more than compensated for SPY&#8217;s outflows, maintaining market stability.
Read more: <a href="https://www.benzinga.com/markets/equities/24/06/39420041/big-tech-dominance-5-companies-projected-to-lap-average-s-p-500-stocks-earnings-growth">Big Tech Dominance: 5 Companies Projected To Lap Average S&amp;P 500 Stock&#8217;s Earnings Growth</a>
Photo: Shutterstock

World's Biggest S&P 500 ETF Bleeds Outflows: Why Isn't The Market Crashing? (CORRECTED)

Advanced Micro Devices, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMD#NASDAQ">AMD</a>) stock gained over 42% <a href="https://www.benzinga.com/topic/semiconductors">in the last six months</a>.
Analysts tout AMD as the second most significant beneficiary after Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>). AMD recently highlighted gaining a 33% market share in the server CPU market in the first-quarter, up from ~8% in 2020.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/06091109/newplot-16.png" alt="" class="wp-image-374582" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/06091109/newplot-16.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/06091109/newplot-16-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
<a target="_blank" href="https://www.benzinga.com/news/24/06/39191601/whats-going-on-with-amd-stock-on-wednesday" rel="noreferrer noopener">After the Taiwan event, analysts called out</a> AMD&#8217;s&nbsp;pipeline, including the upcoming MI325, MI350, MI400, and MI400.
Recent reports indicated AMD&#8217;s plans to&nbsp;tap&nbsp;Samsung Electronics Co to develop 3-nanometer chip processing technology. However, TF International Securities analyst Ming-Chi Kuo stated there is a lack of progress between the companies. In her latest post, the analyst further noted that by the time the companies are ready to commercialize the 3-nm chip technology, Taiwan Semiconductor Manufacturing Co&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) 2-nm will already be in mass production. According to the analyst, it would make more sense for AMD to invest in TSMC&#8217;s 2-nm products.
According to the analyst, AMD and Samsung are currently discussing leveraging 5-nm for AMD&#8217;s AI chip MI400 series.
AMD&#8217;s market cap of $269 billion trails the undisputed numero uno AI beneficiary Nvidia&#8217;s market cap of over $3 trillion, with the latter crossing Apple Inc&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) market cap this Wednesday.
Investors can gain exposure to AMD via iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>).
Price Action:&nbsp;AMD shares traded higher by 0.28%&nbsp;at&nbsp;$166.64 premarket at the last check Thursday.
Now Read: <a href="https://www.benzinga.com/news/24/06/39198446/jensen-huangs-nvidia-to-remain-top-dog-in-ai-chip-battle-amd-to-get-a-slice-predicts-tech-investor-p">Jensen Huang&#8217;s Nvidia To Remain &#8216;Top Dog&#8217; In AI Chip Battle, AMD To Get A Slice, Predicts Tech Investor Paul Meeks</a>

What's Going On With AMD Stock Thursday?

Nvidia Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) stock surged to record highs on Wednesday, valuing the company at over $3 trillion and making it the world&#8217;s second most valuable company, surpassing Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>).
Nvidia plans a ten-for-one stock split on June 7 to attract more individual investors.
Nvidia&#8217;s valuation has soared 147% in 2024 due to strong demand for AI processors from companies like Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), and Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>).
On Wednesday, Nvidia added nearly $150 billion in market capitalization, more than the entire value of AT&amp;T Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>), Reuters reports.
Jake Dollarhide, CEO of Longbow Asset Management, remarked, &#8220;Nvidia is making money on AI right now, and companies like Apple and Meta are spending on AI.&#8221;
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/06060421/newplot-15.png" alt="" class="wp-image-374114" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/06060421/newplot-15.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/06/06060421/newplot-15-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Nvidia&#8217;s CEO Jensen Huang received widespread media coverage at Computex in Taipei. Meanwhile, Apple faces weak iPhone demand and stiff competition in China.
According to S&amp;P Dow Jones Indices, five companies, including Nvidia, Microsoft, Meta, Alphabet, and Amazon.Com Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), account for about 60% of the S&amp;P 500&#8217;s total return of over 12% this year. Nvidia alone has contributed roughly a third of this gain, following a 147% surge in 2024.
Angelo Kourkafas, senior investment strategist at Edward Jones, highlighted potential market vulnerability if these key stocks falter and the rest of the market does not provide support.
Tajinder Dhillon, senior research analyst at LSEG, expects the earnings gap between the &#8220;Magnificent Seven&#8221; companies and the rest of the S&amp;P 500 to narrow as 2024 progresses.
<a target="_blank" href="https://www.benzinga.com/news/24/06/39189567/whats-going-on-with-nvidia-stock-on-wednesday" rel="noreferrer noopener">Recent reports indicated</a> that Nvidia is preparing to ramp up investments in Taiwan, with plans to build its second supercomputer there. This underscores the importance of crucial supplier &nbsp;Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>).
Nvidia has already tapped Samsung Electronics Co&nbsp;for the supply of high-bandwidth memory (HBM) chips and is now eying Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) as a potential supplier to overcome the supply chain constraints. 
Analysts reaffirmed Nvidia as the&nbsp;lead AI beneficiary&nbsp;after the recent Taiwan event, citing opportunities with its Hopper platform and Blackwell B100/200.
Nvidia stock gained over 217% in the last 12 months. Investors can gain exposure to the stock via SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>).
Price Action: NVDA shares traded lower by 0.83% at $1,214.17 at the last check on Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

AMZN

GOOG

GOOGL

MSFT

What's Going On With Nvidia Stock On Thursday?

Billionaire investor Ray Dalio, founder of Bridgewater Associates, recently highlighted <a href="https://www.benzinga.com/topic/us-china-relations-0">escalating U.S.-China tensions</a> and the importance of diversification in the face of growing global risks.
Speaking at the Greenwich Economic Forum in Hong Kong, Dalio emphasized the potential for significant economic and political upheaval in the coming years, as <a href="https://www.bloomberg.com/news/articles/2024-06-05/ray-dalio-touts-us-elections-china-conflicts-as-global-risks?cmpid=BBD060524_OUS&amp;utm_medium=email&amp;utm_source=newsletter&amp;utm_term=240605&amp;utm_campaign=openamericas">reported</a> by Bloomberg.
He stressed that U.S. election results and economic sanctions against China are among the most critical issues currently.
<h2 class="wp-block-heading">Risk Of Internal Conflicts Within The US</h2>
Dalio underscored the risk of internal conflicts within the U.S., particularly surrounding the contentious issue of election legitimacy.
He emphasized that the policies of a reelected Donald Trump would starkly contrast with those of a second-term Joe Biden presidency. However, he noted a bipartisan consensus on anti-China policies, which could lead to severe economic consequences on a global scale.
<h2 class="wp-block-heading">Economic Warfare Often Precedes Military Conflict</h2>
&#8220;There's a great risk of economic sanctions that would be really terrible for the world,&#8221; Dalio said, highlighting that economic warfare often precedes military conflict. He warned that the long-standing one-China policy, especially regarding Taiwan, could face significant challenges, affecting international investors.
Dalio painted a broader picture of a world facing unprecedented risks due to:
<ul>
<li>enormous debt levels</li>
<li>internal political strife</li>
<li>great power clashes. </li>
</ul>
Adding to these are natural disasters, pandemics, and the rapid advancement of artificial intelligence.
<h2 class="wp-block-heading">Economic Uncertainties Make Diversification Crucial</h2>
These uncertainties, he argued, make effective diversification in investments more crucial than ever. &#8220;The power of diversification is greater than the power of even good decision-making,&#8221; Dalio said. 
He stressed the need for investors to spread their assets across countries, currencies, and asset classes to mitigate risks. He noted that while Chinese assets have recently seen declines, they are now attractively priced, and Bridgewater has found effective ways to invest in China over the past five years.
Related: <a href="https://www.benzinga.com/markets/asia/24/04/38070613/billionaire-investor-ray-dalio-remains-bullish-on-china-despite-a-looming-100-year-storm-the-time-to">Billionaire Investor Ray Dalio Remains Bullish On China Despite A Looming &#8216;100-Year Storm&#8217;: &#8216;The Time To Buy Is When Everyone Hates The Market&#8217;</a>
Despite the tensions, Dalio remains invested in both the U.S. and China, recognizing their dominance in revolutionary new technologies. However, he also pointed to neutral states such as those in Southeast Asia, India, and the Middle East as attractive investment destinations, often faring better in conflicts compared to the main warring parties.
<h2 class="wp-block-heading">Dalio: Prefer Equity Over Debt, Hedge With Gold</h2>
Dalio expressed a preference for equity assets over debt, citing concerns about the latter&#8217;s inadequate returns. He warned that central banks holding significant debts may have to monetize losses, leading to late-cycle inflation.
Popular exchange-traded funds offering diversified exposure to U.S. equities include: the SPDR S&amp;P 500 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>).
As a hedge, he recommended holding gold, which he described as the third-largest reserve currency after the U.S. dollar and the euro. The SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>) and the iShares Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAU#NYSE">IAU</a>) are popular gold-tracking ETFs.
Dalio&#8217;s insights highlight the critical need for investors to diversify their portfolios amid rising global risks, particularly those stemming from U.S.-China economic tensions. By spreading investments across various regions and asset classes, investors can better navigate the uncertain landscape ahead.
Read Next: <a href="https://www.benzinga.com/economics/macro-economic-events/24/05/38946694/ray-dalio-us-on-the-brink-of-civil-war-but-not-one-where-people-grab-guns-and-sta">Ray Dalio: US &#8216;On The Brink&#8217; Of Civil War, But Not One Where People &#8216;Grab Guns And Start Shooting&#8217;</a>
Photo: <a href="https://www.flickr.com/photos/websummit/" target="_blank" rel="noreferrer noopener">Web Summit</a> on Flickr

Ray Dalio Warns Of US-China Economic Sanctions, Stresses Diversification

Billionaire investor Ray Dalio has jokingly suggested that pop superstar Taylor Swift could be a unifying force for the U.S. Although made partly in jest, Dalio&#8217;s comments about Swift running for president reflect a serious recognition of the need for a leader capable of bridging the <a href="https://www.benzinga.com/economics/macro-economic-events/24/05/38946694/ray-dalio-us-on-the-brink-of-civil-war-but-not-one-where-people-grab-guns-and-sta">nation&#8217;s deep divisions</a>.
<h2 class="wp-block-heading">&#8216;Taylor Swift For President&#8217; &#8211; Ray Dalio</h2>
Dalio&#8217;s endorsement came after he attended one of Swift&#8217;s concerts during her &#8220;Eras Tour.&#8221; He was struck by her ability to bring together people from diverse backgrounds and nationalities. The observation led him to half-jokingly propose her as a potential presidential candidate. &#8220;I saw how she brought people of all sorts — and many nationalities — together,&#8221; Dalio, remarked. &#8220;I say this partly as a joke, but if she ran for president and would listen to great advisers, I&#8217;d consider supporting her.&#8221;
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Re: my Taylor Swift for president! comments, no I wasn&#39;t drunk (though obviously I need to work on my selfies) and yes it was a joke, which is a half-truth. The half that's true is that I think she can bring people together a lot better than either of the presidential candidates… <a href="https://t.co/nqvfEWEUZx">https://t.co/nqvfEWEUZx</a>
&mdash; Ray Dalio (@RayDalio) <a href="https://twitter.com/RayDalio/status/1766127226410393719?ref_src=twsrc%5Etfw">March 8, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Dalio&#8217;s admiration for Swift&#8217;s unifying influence is not entirely unfounded. Known for her widespread appeal and ability to connect with a broad audience, Swift has cultivated a massive and diverse fanbase. Her concerts often feature a mix of people from various walks of life, all united by their appreciation for her music and message. 
This capacity to foster a sense of community and shared experience is something that Dalio sees as desperately needed in today&#8217;s fragmented political landscape.
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38866147/swiftonomics-to-the-rescue-taylor-swifts-eras-tour-to-inject-1-2b-into-rebounding-u">Swiftonomics To The Rescue! Taylor Swift&#8217;s &#8216;Eras Tour&#8217; To Inject $1.2B Into Rebounding UK Economy, Says Barclays</a>
While his suggestion of a Taylor Swift presidency may have been made in a light-hearted manner, Dalio&#8217;s underlying message is serious. 
<h2 class="wp-block-heading">Dalio Highlights The Need For a Leader To Address Societal Divisions In US</h2>
He recognizes the urgent need for a leader who can heal the nation&#8217;s divisions and bring people together. His comments highlight the broader search for such a figure, particularly in a time of intense political polarization and societal upheaval.
Dalio&#8217;s remarks also reflect his broader concerns about the direction in which the U.S. is heading. In his recent <a href="https://www.ft.com/content/d54e5886-7f9a-49c4-a915-61ca506e4514">interview</a> with the Financial Times, he warned of the potential for a civil war, estimating the likelihood at 35% to 40%. 
These warnings, combined with his surprising endorsement of Swift, underscore his belief that unconventional solutions and new approaches are necessary to address the nation&#8217;s challenges.
Dalio is the founder of Bridgewater Associates. Over the past few years, 74-year-old Dalio gradually scaled back his formal role at the firm. He resigned as CEO in 2017 and stepped down as co-CIO last October. He does remain involved in a more informal capacity as a CIO mentor, offering advice and meeting with investors.
Bridgewater Associates is one of the largest hedge funds in the US. Per their last latest SEC filing for Q1 2024, their top 10 <a href="https://whalewisdom.com/filer/bridgewater-associates-inc">holdings</a> had a concentration of 31.87%. Bridgewater Associates&#8217;s largest holding is the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) which commands 5.57% of the portfolio. 
The IVV is followed by iShares Core MSCI Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEMG#NYSE">IEMG</a>) and Alphabet Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) commanding 4.87% and 4.10%, respectively. Notably, Bridgewater&#8217;s allocation to Google has bumped from 1.60% in the last quarter to 4.10% in Q1 2024.
Read Next: <a href="https://www.benzinga.com/economics/macro-economic-events/24/05/38946694/ray-dalio-us-on-the-brink-of-civil-war-but-not-one-where-people-grab-guns-and-sta">Ray Dalio: US &#8216;On The Brink&#8217; Of Civil War, But Not One Where People &#8216;Grab Guns And Start Shooting&#8217;</a>
Photo: <a href="https://www.flickr.com/photos/tedconference/" target="_blank" rel="noreferrer noopener">TED Conference</a> from Flickr

Politics

IEMG

Ray Dalio Jokingly Says If Taylor Swift Ran For President, He'd 'Consider Supporting Her'

Billionaire investor and founder of Bridgewater Associates, Ray Dalio, has issued a grave warning about the escalating political and social <a href="https://www.benzinga.com/topic/economy">divisions in the U.S. </a>
<h2 class="wp-block-heading">&#8216;We Are Now On The Brink&#8217; Of Civil War &#8211; Dalio</h2>
In a recent <a href="https://www.ft.com/content/d54e5886-7f9a-49c4-a915-61ca506e4514">interview</a> with the Financial Times, Dalio estimated that the likelihood of a civil war could be as high as 40%, a figure that underscores his deep concerns about the current state of the nation.
The civil war Dalio envisions is not necessarily one where people &#8220;grab guns and start shooting.&#8221; Instead, he sees it as an acceleration of the political polarization that has occurred in American politics over recent decades. In this civil war, &#8220;people move to different states that are more aligned with what they want, and they don't follow the decisions of federal authorities of the opposite political persuasion,&#8221; he told the FT.
Dalio-founded Bridgewater Associates is one of the largest and most influential hedge funds in the world. Over the past few years, 74-year-old Dalio has gradually scaled back his formal role at the firm. He resigned as CEO in 2017 and stepped down as co-CIO last October. He does remain involved in a more informal capacity as a CIO mentor, offering advice and meeting with investors. 
However, Dalio has long been vocal about his apprehensions regarding the U.S. political and economic climate.
He pointed to several critical factors that he believes are contributing to the nation&#8217;s precarious position: 
<ul>
<li>extreme levels of government debt</li>
<li>significant wealth inequality</li>
<li>rising internal political rifts</li>
<li>ongoing external conflicts. </li>
</ul>
&#8220;We are now on the brink&#8221; and we &#8220;don't yet know if we will cross over into much more turbulent times,&#8221; Dalio stated, emphasizing the urgent need for attention to these issues to prevent potential disaster.
Also Read: <a href="https://www.benzinga.com/news/24/04/38350894/billionaire-investor-ray-dalio-is-sticking-with-gold-as-a-hedge-against-inflation-history-and-logic">Billionaire Investor Ray Dalio Is Sticking With Gold As A Hedge Against Inflation: &#8216;History And Logic Show That &#8230;&#8217;</a>
<h2 class="wp-block-heading">Concerns About A Societal Fracture</h2>
In late 2020, he noted that the U.S. was already experiencing a form of civil war as people moved between states based on their political affiliations. 
By early 2021, he lamented that America was in a &#8220;terrible financial state and terribly divided.&#8221;
Dalio&#8217;s concerns extend beyond domestic issues. Following the Israel-Hamas conflict in October, he said that the risk of a global war involving major powers like the U.S. and China had surged to about 50%, <a href="https://www.businessinsider.com/ray-dalio-israel-hamas-world-war-middle-east-politics-linkedin-2023-10">according</a> to Business Insider. This global perspective adds a layer of complexity to his warnings, illustrating how interconnected the threats facing the U.S. are with broader international dynamics.
Also Read: <a href="https://www.benzinga.com/news/24/05/38768337/un-general-assembly-votes-to-grant-palestine-new-rights-israel-hamas-ceasefire-talks-stall">UN General Assembly Votes To Grant Palestine New Rights, Israel-Hamas Ceasefire Talks Stall</a>
<h2 class="wp-block-heading">Broad Market Investors Must Be Vigilant Of Socio-Political Upheavals</h2>
For investors, Dalio&#8217;s stark warnings serve as a crucial reminder of the importance of considering the broader socio-political context when making financial decisions. The potential for significant upheaval in the U.S. could have far-reaching implications for markets and economies worldwide. As such, it is essential to remain vigilant and prepared for the various scenarios that might unfold in these uncertain times.
Investors in U.S.-equity broad market ETFs such as those tracking the S&amp;P 500 index &#8211; the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) are most susceptible to any such event.
Investors in other popular broad market ETFs such as the Vanguard Total Stock Market ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTI#NYSE">VTI</a>), and the Invesco QQQ Trust Series I ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) also have broad exposure to equity markets in the U.S. Any negative socio-political event could have a direct and deep impact on the performance of these ETFs.
Read Next: <a href="https://www.benzinga.com/trading-ideas/24/05/38940955/the-one-chart-to-watch-as-s-p-500-makes-new-all-time-highs">The One Chart To Watch As S&amp;P 500 Makes New All-Time Highs</a>
Photo: <a href="https://www.flickr.com/photos/websummit/" target="_blank" rel="noreferrer noopener">Web Summit</a> on Flickr

Ray Dalio: US 'On The Brink' Of Civil War, But Not One Where People 'Grab Guns And Start Shooting'

As June approaches, investors are eyeing potential additions to <a href="https://www.benzinga.com/topic/s-p-500-index">the S&amp;P 500 index</a>, looking for opportunities to ride the wave of hype and speculation.
<figure class="wp-block-embed is-type-rich is-provider-reddit wp-block-embed-reddit"> 
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<blockquote class="reddit-embed-bq" style="height:316px" ><a href="https://www.reddit.com/r/stocks/comments/1ctsly9/possible_sp500_inclusions_june_20th/">Possible SP500 Inclusions June 20th?</a> by<a href="https://www.reddit.com/user/breakyourteethnow/">u/breakyourteethnow</a> in<a href="https://www.reddit.com/r/stocks/">stocks</a></blockquote>
<script async src="https://embed.reddit.com/widgets.js" charset="UTF-8"></script></div>
</figure>
Redditor breakyourteethnow anticipates Palantir Technologies Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PLTR#NYSE">PLTR</a>) to gain momentum amid S&amp;P 500 inclusion speculation. &#8220;I believe PLTR hype will begin for SP500 inclusion which will play that run-up. Playing the rumor, not the news scenarios basically,&#8221; they said.
While some, like Palantir, are already on the radar, others are just starting to garner attention. Redditor Responsible-Point421 <a href="https://www.reddit.com/r/stocks/comments/1ctsly9/comment/l4elwqw/">suggests </a>AppLovin Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/APP#NASDAQ">APP</a>) as a potential contender, noting the lack of concrete information but highlighting the speculative buzz.
This aligns with breakyourteethnow&#8217;s strategy of playing the rumor, not the news.
However, seasoned investors like JafarFromAfar2 warn against unrealistic expectations. They point out that companies like DoorDash Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DASH#NASDAQ">DASH</a>), despite their growth, may not be eligible due to profitability requirements for S&amp;P 500 inclusion. This underscores the importance of thorough research and understanding the index&#8217;s criteria.
Others, like Key-Mark4536, <a href="https://www.reddit.com/r/stocks/comments/1ctsly9/comment/l4e4q29/">focus </a>on companies that have grown substantially and could potentially overtake some of the current S&amp;P 500 members. Their list includes DoorDash, Ares Management Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARES#NYSE">ARES</a>), Block Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SQ#NYSE">SQ</a>), Datadog Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DDOG#NASDAQ">DDOG</a>), and Pinterest Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PINS#NYSE">PINS</a>), highlighting the dynamic nature of the index and the opportunities it presents for both investors and companies striving for inclusion.
As speculation mounts and rumors swirl, one thing is clear: strategic planning and staying informed are key to capitalizing on the potential S&amp;P 500 Index inclusion hype. Key ETFs that would be affected along with the rebalancing are the S&amp;P 500 index-tracking SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>).
Now Read: <a href="https://www.benzinga.com/news/earnings/24/05/38895624/gamestop-shares-fall-on-offering-one-shouldnt-buy-stocks-just-because-they-are-going-up-fund-manage">GameStop Shares Fall On Offering: &#8216;One Shouldn&#8217;t Buy Stocks Just Because They Are Going Up,&#8217; Fund Manager Says</a>
Photo: Shutterstock

Social Media

Opinion

ARES

DASH

DDOG

PINS

PLTR

'Playing The Rumor, Not The News': Reddit Users Speculate On Potential S&P 500 Inclusions

A seismic shift is currently underway among the world&#8217;s largest exchange-traded funds (ETFs), which could redefine the landscape of <a href="https://www.benzinga.com/etfs">the ETF universe. </a>
The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the largest ETF globally with over $500 billion in assets under management, experienced significant outflows since the beginning of the year.
In contrast, its lower-cost peers, especially the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), saw an influx of investments.
What&#8217;s driving this trend?
<h1 class="wp-block-heading">Outflows From SPY ETF On The Rise</h1>
The SPDR S&amp;P 500 ETF Trust witnessed outflows totaling $28 billion since the year&#8217;s start, according to data from Vettafi.
This shift is notable because it occurs against a backdrop where the U.S. stock market has been on the rise, indicating that the performance of the underlying investments isn&#8217;t the cause of the outflows.
The primary driver behind this shift appeared to be the cost associated with managing these funds, rather than their performance. 
SPY has an expense ratio of 0.09%, significantly higher than some of its direct competitors. Even a few basis points can make a considerable difference in investor returns over time, especially for institutional or very large individual investors.
<h1 class="wp-block-heading">Chart: SPY ETF Witnesses $28 Billion In Outflows Year-To-Date</h1>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09110709/image-52-1024x495.png" alt="" class="wp-image-330876" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09110709/image-52-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09110709/image-52-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09110709/image-52-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09110709/image-52-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09110709/image-52.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h1 class="wp-block-heading">Inflows In Lower-Cost Peers</h1>
While SPY has been seeing outflows, the Vanguard S&amp;P 500 ETF welcomed inflows of $33 billion during the same period. Another competitor, iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>), attracted $14.53 billion.
These ETFs track the same index as SPY and have nearly identical portfolios. 
The distinguishing factor is their expense ratios: the Vanguard S&amp;P 500 ETF and the iShares Core S&amp;P 500 ETF charge just 0.03%, compared to SPY's 0.09%.
<h1 class="wp-block-heading">Chart: VOO ETF Sees Over $33 Billion In Inflows Year-To-Date</h1>
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09111115/image-53-1024x495.png" alt="" class="wp-image-330888" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09111115/image-53-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09111115/image-53-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09111115/image-53-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09111115/image-53-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/05/09111115/image-53.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Read Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/03/37718785/5-things-you-need-to-know-about-vanguard-etfs-why-theres-no-bitcoin-etf-in-their-lineup">5 Things You Need To Know About Vanguard ETFs: Why There&#8217;s No Bitcoin ETF In Their Lineup?</a>
<h1 class="wp-block-heading">Should You Switch From SPY to VOO?</h1>
Although a difference of 0.06% in expense ratios might seem negligible, it becomes significant with larger investments or over extended periods. 
For instance, on a $10,000 investment, choosing VOO over SPY saves an investor $6 annually. However, for a $10 million investment, the annual savings jump to $6,000.
To illustrate the long-term impact, consider an investor who starts with a $100,000 investment in an S&amp;P 500 fund. Assuming an average annual return of 7%, after 20 years, this investment would grow to $384,803 with VOO, compared to $380,509 with SPY, due to the difference in expense ratios.
Over time, these seemingly small differences can result in substantial divergences in end wealth, due to the effect of compounding returns.
Thus, for individual investors, particularly those with substantial amounts or long investment horizons, the cost savings from ETFs associated with lower expense ratios should not be overlooked.
If a person was considering a switch from SPY to VOO, it&#8217;s essential to weigh these factors along with any potential tax implications or transaction costs associated with such a move.
For many, the long-term savings on fees could justify the switch, enhancing overall returns while keeping the same portfolio structure. 
Yet, if a person had significant holdings in the SPY, they need to consider the tax costs associated with selling their shares. To avoid these potential tax liabilities, maintain the investment in SPY and start diverting new funds into a more cost-effective ETF, such as the VOO or the iShares Core S&amp;P 500 ETF (IVV).
<h1 class="wp-block-heading">Table Comparison: SPY vs. VOO vs. IVV</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td></td>
<td>SPDR S&amp;P 500 ETF Trust (SPY)</td>
<td>Vanguard S&amp;P 500 ETF (VOO)</td>
<td>iShares Core S&amp;P 500 ETF (IVV)</td>
</tr>
<tr>
<td>Issuer</td>
<td>State Street Global Advisor </td>
<td>Vanguard</td>
<td>iShares – BlackRock Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>)</td>
</tr>
<tr>
<td>Index tracked</td>
<td>S&amp;P 500</td>
<td>S&amp;P 500</td>
<td>S&amp;P 500</td>
</tr>
<tr>
<td>Asset under management</td>
<td>$511.36 billion</td>
<td>$440.59 billion</td>
<td>$451.03 billion</td>
</tr>
<tr>
<td>Net flows (ytd)</td>
<td>$-28.06 billion</td>
<td>$33.28 billion</td>
<td>$14.53 billion</td>
</tr>
<tr>
<td>Expense ratio</td>
<td>0.09%</td>
<td>0.03%</td>
<td>0.03%</td>
</tr>
<tr>
<td>Annual dividend yield</td>
<td>1.30%</td>
<td>1.35%</td>
<td>1.33%</td>
</tr>
<tr>
<td>YTD Return</td>
<td>9.15%</td>
<td>9.19%</td>
<td>9.18%</td>
</tr>
<tr>
<td>3-year Return</td>
<td>8.60%</td>
<td>8.66%</td>
<td>8.66%</td>
</tr>
<tr>
<td>5-year Return</td>
<td>14.25%</td>
<td>14.30%</td>
<td>14.34%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Data: Vettafi.com</figcaption></figure>
Read Now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38643266/why-veteran-wall-street-investor-believes-were-still-in-a-bull-market">Why Veteran Wall Street Investor Believes We&#8217;re Still In A Bull Market</a>
Photo: <a href="https://www.shutterstock.com/g/chara_stagram">YO Alexandre</a> via Shutterstock

Investors Flock To Lower-Cost Vanguard S&P 500 ETF: Is It Time To Switch From SPY To VOO?

Firebrand Republican Congresswoman&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38348258/marjorie-taylor-greene-takes-step-back-in-effort-to-remove-speaker-mike-johnson-but-blasts-him-as-a" rel="noreferrer noopener">Marjorie Taylor Greene</a>&nbsp;(R-GA) made headlines Thursday&nbsp;with a disclosure of&nbsp;her latest financial transactions.
What Happened: Greene&#8217;s filing on Thursday marks her first periodic transaction report since June 2022, adhering to the &#8220;Stock Trading on Congressional Knowledge Act.&#8221; This act mandates U.S. lawmakers to publicly disclose financial transactions within 45 days of occurrence, typically within a value range.
All transactions occurred on either April 25 or 26.
The details of Greene&#8217;s transactions are as follows:
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Company</td>
<td>Value Range</td>
</tr>
<tr>
<td>Berkshire Hathaway, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>Goldman Sachs Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GS#NYSE">GS</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>The Home Depot, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HD#NYSE">HD</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>Schwab US Large-Cap Growth Idx (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SWLGX#NASDAQ">SWLGX</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>The Hershey Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HSY#NYSE">HSY</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>Tractor Supply Company (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSCO#NASDAQ">TSCO</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>US Treasury Bill</td>
<td>$250,001-$500,000</td>
</tr>
<tr>
<td>Vanguard FTSE Developed Markets Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEA#NYSE">VEA</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>Vanguard Mid-Cap Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VO#NYSE">VO</a>)</td>
<td>$1,001-$15,000</td>
</tr>
<tr>
<td>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</td>
<td>$15,001-$50,000</td>
</tr>
<tr>
<td>Vanguard Small-Cap Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VB#NYSE">VB</a>)</td>
<td>$1,001-$15,000</td>
</tr>
</tbody>
</table>
</figure>
Sale transactions:
<ul>
<li>iShares Core MSCI Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EMG#NYSE">EMG</a>): $1,001-$15,000 </li>
<li>iShares Core MSCI Total International Stock ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IXUS#NASDAQ">IXUS</a>): $1,001-$15,000 </li>
<li>iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>): $1,001-$15,000)</li>
<li>iShares Core S&amp;P Small-Cap ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IJR#NYSE">IJR</a>): $1,001-$15,000)</li>
<li>iShares Core S&amp;P U.S. Growth ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/IUSG#NASDAQ">IUSG</a>): $1,001-$15,000)</li>
</ul>
All the exchange-traded funds were part of mutual funds held in Greene&#8217;s managed IRA account.
See Also: <a href="https://www.benzinga.com/money/how-to-invest-in-startups">How To Invest In Startups</a>
No DJT Trades: Greene, an ardent backer of Republican Presidential candidate Donald Trump, incidentally did not do any new transaction in Trump Media &amp; Technology Group Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DJT#NASDAQ">DJT</a>), the former president&#8217;s media company that <a href="https://www.benzinga.com/markets/equities/24/03/37963370/trumps-djt-stock-is-worth-52x-more-than-nvidia-by-1-data-point">came public in late March following its merger with SPAC Digital World Acquisition.</a>
The stock is down about 16% since its public debut.
When Digital World Acquisition announced its decision with Trump Media &amp; Technology Group in 2021, Green was the first Congress member to invest in the SPAC. She then reported that she along with her then-husband Perry Greene bought $15,001-$50,000 worth of the SPAC&#8217;s shares
Greene hasn&#8217;t disclosed any sale of the stock since then.
The stock market has been on a tear this year despite the headwinds. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), an ETF that tracks the broader S&amp;P 500 Index, rose 0.34% to $506.74, in premarket trading, according to <a href="https://benzinga.grsm.io/lxquj26b2sag">Benzinga Pro data. </a>It has gained over 6.5% so far this year.
Read Next: <a href="https://www.benzinga.com/news/earnings/24/05/38609896/wall-street-looks-to-feed-off-apples-post-earnings-power-but-key-jobs-data-may-upset-the-cart-analy">Wall Street Looks To Feed Off Apple&#8217;s Post-Earnings Power But Key Jobs Data May Upset The Cart: Analyst Says &#8216;A Lot Of These Clouds Will Lift&#8217; If This Happens</a>

IXUS

MSTF

QCOM

SWLGX

TSCO

Marjorie Taylor Greene Reveals New Stock Trades After 2-Year Gap: Berkshire Hathway, Goldman Sachs And Microsoft Make The List — But Trump's DJT Doesn't

A new exchange-traded fund (ETF) is set to launch, offering investors a unique proposition of &#8220;100% downside protection&#8221; to the stock market, but with a few conditions.
What Happened: The Calamos S&amp;P 500 Structured Alt Protection ETF – May will be introduced on Wednesday under the ticker symbol &#8220;CPSM,&#8221; <a href="https://www.calamos.com/about/news/press-releases/2024/calamos-targets-capital-protected-industry-with-12-new-etfs/">according</a> to the press release. 
The ETF is designed to provide investors who purchase it on its first day of issuance with 100% protection to the S&amp;P 500 over a one-year period.
However, this protection comes with a trade-off. The ETF will also cap investors&#8217; upside gains to the S&amp;P 500 at a range of 9.20% to 9.65%. The cap is determined by a package of options positions that expire on the same day, one year from the purchase date.
&#8220;These are a package of options positions all customized to expire on the same day, one-year from now that can deliver the upside to a cap, there&#8217;s no free lunch here, so a cap of right around 9.65% is what we&#8217;re seeing now, with 100% protection over the next 365 days,&#8221; Calamos&#8217; head of ETFs Matt Kaufman told CNBC on Monday.
For investors to secure the 100% downside protection, they must buy the ETF on its first day of issuance. Purchases made after May 1 will offer a lower level of downside protection, depending on option prices.
See Also: <a href="https://www.benzinga.com/markets/cryptocurrency/24/04/38478293/shiba-inus-burn-rate-soars-cathie-wood-believes-ethereum-could-catch-up-to-bitcoin-and-mor?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Shiba Inu&#8217;s Burn Rate Soars, Cathie Wood Believes Ethereum Could Catch Up To Bitcoin And More: Top Crypto</a>
When comparing anticipated returns of CPSM, some ETFs stand out. For instance SPDR S&amp;P 500 Trust ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), currently trading at $510, boasting a one-year return of 27.48%. Similarly, the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>), priced at $512.59, has shown a one-year return of 27.66%. Notably, the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), trading at $468.84, has delivered a one-year return of 27.70%, according to the data <a href="https://pro.benzinga.com/dashboard">from Benzinga Pro</a>.
Why It Matters: The introduction of this unique ETF comes at a time when the stock market is experiencing a series of unexpected turns. Economists at Macquarie recently <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38508875/another-rate-hike-coming-in-2024-macquarie-economists-reverse-forecast-warn-of-incr">revised their predictions for interest rates</a>, suggesting a potential hike. This shift is driven by signs of inflation rebounding and a resilient U.S. economy.
Despite these changes, the stock market&#8217;s long-term bull rally is expected to continue, with the S&amp;P 500 potentially surging by 34% by the end of 2026, according to <a href="https://www.benzinga.com/markets/equities/24/03/37926504/stock-market-could-rally-another-34-by-2026-says-bank-of-america">Bank of America&#8217;s technical strategist</a>, Stephen Suttmeier.
However, not all experts share this optimistic outlook. Paul Dietrich, the chief investment strategist at B. Riley Wealth, has <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37979729/stock-market-bizarrely-overvalued-warns-expert-every-single-indicator-tell-us-were-">warned of a major correction</a> in the stock market, pointing to indicators signaling a historic bubble.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38475783/bitcoin-faces-second-danger-zone-as-analyst-warns-of-potential-downside-heres-what-?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Bitcoin Faces &#8216;Second Danger Zone&#8217; As Analyst Warns Of Potential Downside: Here&#8217;s What To Expect</a>
Image Via Shutterstock 
This content was partially produced with the help of <a href="https://www.benzinga.com/author/benzinga-neuro" target="_blank" rel="noreferrer noopener">Benzinga Neuro</a> and was reviewed and published by Benzinga editors.

There's A New ETF Tracking S&P 500 That Offers '100% Downside Protection' But Here's The Catch

There are tons of interesting <a href="https://www.benzinga.com/topic/taxes">tidbits about Tax Day</a>. 
According <a href="https://www.irs.gov/newsroom/irs-delivers-strong-2024-tax-filing-season-expands-services-for-millions-of-people-on-phones-in-person-and-online-with-expanded-funding">to</a> the Internal Revenue Service (IRS):
<ul>
<li>Officers answered more than one million taxpayer phone calls this season.</li>
<li>They processed over 100 million individual tax returns through April 6.</li>
<li>Tens of millions more filings will be made on the April 15 deadline.</li>
<li>About 19 million taxpayers will file extensions due Oct. 15.</li>
<li>More than $200 billion in refunds were already delivered. </li>
<li>The average refund was $3,011 — a 4.6% increase from last April's average of $2,878.</li>
</ul>
These numbers change yearly, but there&#8217;s at least one fairly consistent Tax-Day trend: a jittery stock market. 
According to <a href="https://www.bankrate.com/investing/the-tax-season-effect/">Bankrate</a>, citing data from S&amp;P Global&#8217;s Kensho unit, the first couple weeks of April are typically &#8220;rougher.&#8221;
Many taxpayers will liquidate stocks or tap their money market funds to fulfill immediate cash requirements.
And from 2000 to 2016, the S&amp;P 500 Index declined an average 0.2% during the first two weeks before Tax Day.
After Tax Day, it&#8217;s a different scenario. The S&amp;P 500 usually bounces back to finish April about 1.7% higher on average (climbing &#8220;an astonishing&#8221; 75% of the time, Bankrate notes). 
Per <a href="https://money.com/stocks-could-rise-after-tax-day/">Money.com</a>, the S&amp;P 500 index enjoyed an average gain of 0.83% in the week following the tax deadline from 1998 to 2022 (for 19 out of 25 years). The one-week median gain throughout the year is 0.31%.
In April, the market&#8217;s overall impact is minimal. Investors would be wise to stick to their long-term investment strategy and prioritize contributing to tax-advantaged retirement accounts (i.e., <a href="https://www.benzinga.com/money/what-is-a-401k">401k plans</a> and <a href="https://www.benzinga.com/money/best-ira-accounts">IRAs</a>).
Historically, the S&amp;P 500 has yielded around 10 percent annual gains. The goal is to stay invested over time rather than attempting to time the market. 
Financial advisors typically suggest that their clients invest in S&amp;P 500 index funds (see below) and remain focused on distant future outcomes rather than short-term fluctuations.
<ul>
<li><a href="https://www.benzinga.com/trading-ideas/long-ideas/23/04/31731464/post-easter-spy-market-action-analyzing-s-p-500-etfs-historical-performance-after-the-ho">SPDR S&amp;P 500 ETF</a> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)</li>
<li>iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>)</li>
<li>Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>)</li>
<li>iShares S&amp;P 500 Growth ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVW#NYSE">IVW</a>)</li>
<li>Invesco S&amp;P 500 Equal Weight ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSP#NYSE">RSP</a>)</li>
</ul>
Yardeni Research president Ed Yardeni predicts the S&amp;P 500 could surge <a href="https://www.benzinga.com/markets/equities/24/03/37724263/this-is-a-long-term-bull-market-market-expert-ed-yardeni-stands-by-his-5-400-year-end-s-p-500-ta">26% by 2026 to 6,500</a>.
"I think this is a long-term bull market,&#8221; the economist <a href="https://www.cnbc.com/video/2024/03/13/this-is-a-long-term-bull-market-says-ed-yardeni.html" target="_blank" rel="noreferrer noopener">told</a> CNBC in March. &#8220;I still got 5,400 by year-end and that was a pretty bold call a year ago, but right now that's looking pretty conservative, and why not more?"  
Now Read: <a href="https://www.benzinga.com/economics/macro-economic-events/24/04/38247125/retail-sales-rises-more-than-expected-in-march-indicate-strong-consumer-spending">Retail Sales Rises More Than Expected In March, Indicate Strong Consumer Spending</a>
Image: Shutterstock

Rydex ETF Trust Rydex S&P Equal Weight ETF

How Does The Stock Market Perform Ahead Of Tax Day? 'Rough' At First, Data Shows

Concerns about economic downturns are resurfacing, <a href="https://www.benzinga.com/topic/reddit">at least on Reddit</a>.
With a chart depicting Treasury yield spreads, the post invited Redditors to weigh in on their predictions and insights regarding the <a href="https://www.benzinga.com/topic/recession">possibility of a recession</a>.
See below. 
<figure class="wp-block-embed is-type-rich is-provider-reddit wp-block-embed-reddit"> 
<div class="wp-block-embed__wrapper">
<blockquote class="reddit-embed-bq" style="height:500px" ><a href="https://www.reddit.com/r/wallstreetbets/comments/1c29lik/its_been_almost_2_years_since_the_yield_curve/">It&#8217;s been almost 2 years since the Yield Curve inverted. When&#8217;s that recession happening again?</a> by<a href="https://www.reddit.com/user/qscvg/">u/qscvg</a> in<a href="https://www.reddit.com/r/wallstreetbets/">wallstreetbets</a></blockquote>
<script async src="https://embed.reddit.com/widgets.js" charset="UTF-8"></script></div>
</figure>
Broad U.S. equity market ETFs such as the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>), the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) often serve as barometers of the economic situation.
Also Read: <a href="https://www.benzinga.com//node/38221695">Consumer Sentiment Worsens In April, Inflation Expectations Rise Further: Stocks Fall, Gold Surges Above $2,400</a>
Insights from Redditors:
<ol>
<li>Timing and Rate Cuts: User ElevationAV suggests that recessions often follow after the Federal Reserve pivots and begins cutting interest rates. However, RiskRiches challenges this notion, suggesting that weak market conditions typically precede rate cuts, leading into a recession.</li>
<li>Causes of Recessions: According to Western_Objective209, most recessions are triggered by prolonged periods of high interest rates. Expressing concern about the current economic climate, they predict a recession within the next three months, citing flat inflation as a contributing factor.</li>
<li>Market Expectations: Mountain-Bar-2878 speculates that markets would respond favorably to expected rate cuts if accompanied by a decrease in inflation. However, they anticipate a negative market reaction if rate cuts are prompted by unforeseen economic disruptions.</li>
<li>Interpreting Recession Definitions: Redditor RoundTableMaker highlights the complexity of defining a recession, distinguishing between stock market downturns and economic recessions. They note that while the stock market experienced a downturn last year, it did not correspond to an economic recession.</li>
</ol>
As Redditors engage in discourse about the probability of a recession, varying perspectives emerge regarding the timing, causes, and potential market implications. 
Some Reddit users anticipate a looming recession, citing historical patterns and current economic indicators. Others remain cautiously optimistic about the resilience of the markets. 
As discussions evolve, insights from online communities like r/wallstreetbets provide valuable perspectives for investors navigating uncertain economic terrain.
Read Next: <a href="https://www.benzinga.com//node/38085080">Never Mind Jerome Powell? Bullish Analyst Predicts Over 3 Rate Cuts This Year, Calls Recent Inflation Spike &#8216;Statistical Aberration&#8217;</a>
Image: Shutterstock

Federal Reserve

The Next Recession: Redditors Say It's 'Usually Right After The Fed Pivots And Starts Cutting Rates'

The big three fund managers that jointly manage more than $23 trillion in assets are coming under the scrutiny of federal regulators over their large holdings in many <a href="https://www.benzinga.com/topic/banks">U.S. banks</a>.
BlackRock Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BLK#NYSE">BLK</a>), State Street Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STT#NYSE">STT</a>) and Vanguard run funds that passively track the performances of equity indexes such as the S&amp;P 500. To achieve this, they attempt to match the weightings of stocks held in these funds, to the index weightings.
But in doing so, BlackRock and Vanguard have each built holdings of more than 10% of the shares at several banks, and this is worrying the Federal Deposit Insurance Corp (FDIC), one of the government institutions responsible for banking supervision.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964.png" alt="" class="wp-image-274036" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02103557/newplot-2024-04-02T153538.964-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure>
Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/04/38047230/historic-s-p-500-rally-in-q1-flashes-bullish-signals-for-2024-only-the-ninth-time-s">Historic S&amp;P 500 Rally In Q1 Flashes Bullish Signals For 2024: &#8216;Only The Ninth Time Since 1940&#8217;</a>
<h2 class="wp-block-heading">Ten Percent Rule</h2>
At present, 10% ownership of shares is considered a threshold at which point an investor is considered to have a controlling interest in a bank. Investors must then seek regulatory permission to acquire shares beyond this threshold.
But fund managers are largely exempt from this requirement given their passive investment roles, although they can still use their share ownership to vote in shareholder meetings.
Some board members of the FDIC, are becoming concerned that the big fund managers could overlook their commitment to passive investment and exert greater influence over banks, given the size of their stakes.
Board member Jonathan McKernan <a href="https://www.wsj.com/finance/regulation/regulator-probes-blackrock-and-vanguard-over-huge-stakes-in-u-s-banks-b9f58619?mod=latest_headlines">told</a> the Wall Street Journal of his concerns and is seeking a curb on BlackRock and Vanguard from acquiring further shares above the 10% threshold while the FDIC investigates.
&#8220;We need to be doing more to actually confirm that the Big Three are not leveraging their large stakes to exert influence over FDIC-regulated banks,&#8221; he told the WSJ.
BlackRock owns the iShares series of exchange-traded funds. Its flagship ETF that follows the S&amp;P 500 is the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>). Vanguard, meanwhile, manages the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>), while State Street runs the SPDR series and the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is its big index tracker.
<h2 class="wp-block-heading">&#8216;Problem Of Twelve&#8217;</h2>
It&#8217;s not only regulators who have concerns over the influence of the big funds. In his 2023 book &#8220;The Problem of Twelve,&#8221; Harvard law professor John Coates asserts that roughly 12 people will have effectively seized power over the majority of U.S. public companies in the future.
He issued similar <a href="https://globalreports.columbia.edu/books/the-problem-of-twelve/">warnings</a> about &#8220;a small number of institutions [that] acquire the means to exert outsized influence over the politics and economy of a nation.&#8221;
He says in the book: &#8220;The Big Four index funds of Vanguard, State Street, Fidelity, and BlackRock control more than 20% of the votes of S&amp;P 500 companies — a concentration of power that's unprecedented in America.&#8221;
In its iShares US Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYF#NYSE">IYF</a>) BlackRock&#8217;s biggest banking holdings are in JPMorgan Chase &amp; Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JPM#NYSE">JPM</a>), Bank of America Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAC#NYSE">BAC</a>) and Wells Fargo &amp; Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WFC#NYSE">WFC</a>). The Vanguard Financials ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VFH#NYSE">VFH</a>) holds the same three stocks but with differing weightings.
Benzinga reached out to the FDIC for further details, but the agency said it was not commenting.
Now Read: <a href="https://www.benzinga.com/news/earnings/24/04/38021303/fanduel-success-drives-flutter-to-seek-primary-listing-on-nyse">FanDuel Success Drives Flutter To Seek Primary Listing On NYSE</a>
Image by Shutterstock.

Management

Personal Finance

iShares Dow Jones US Financial Sector Index Fund

Could 3 Powerful Fund Managers Take Control Of US Banks?

The first quarter of 2024 proved to be an eventful period for investors as the S&amp;P 500 Index exhibited significant growth, surging by 9.94%. Among the various sectors comprising the index, two sectors stood out for their remarkable performance: energy <a href="https://www.benzinga.com/quote/XLC">and communication services</a>. 
The S&amp;P 500 Index is widely tracked by the SPDR S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>).
Also Read: <a href="https://www.benzinga.com/markets/equities/24/03/37927561/goldman-sachs-predicts-15-upside-for-s-p-500-ai-boom-could-drive-market-to-6-000">Goldman Sachs Predicts 15% Upside For S&amp;P 500, AI Boom Could Drive Market To 6,000</a>
Let&#8217;s delve deeper into the standout sectors and the top-performing stocks within each.
<h2 class="wp-block-heading">Energy Sector: A Strong Rally (+13.47%)</h2>
The energy sector, represented by the SPDR Energy Select Sector Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>), experienced a notable upswing with a growth rate of 13.47% during Q1. This surge can be attributed to multiple factors, including the ongoing global economic recovery, increased demand for oil and gas, and supply chain disruptions impacting the sector.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="630" height="465" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084242/Screenshot-2024-04-02-at-6.11.58-PM.png" alt="" class="wp-image-273757" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084242/Screenshot-2024-04-02-at-6.11.58-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084242/Screenshot-2024-04-02-at-6.11.58-PM-300x221.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></figure>
<a target="_blank" href="https://pro.benzinga.com/dashboard" rel="noreferrer noopener">Chart: Benzinga Pro</a>
Leading the charge in the energy sector were several key stocks that significantly contributed to its impressive performance:
<ol>
<li>Marathon Petroleum Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MPC#NYSE">MPC</a>): With a remarkable surge of 37.78%, Marathon Petroleum stock has emerged as one of the top-performing stocks in the energy sector. The company, which engages in refining, marketing, and transportation of petroleum products, benefited from rising oil prices and strong demand for refined products.</li>
<li>Valero Energy Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLO#NYSE">VLO</a>): Valero Energy stock recorded a substantial gain of 32.80% during Q1. As one of the largest independent petroleum refining and marketing companies, Valero capitalized on favorable market conditions, robust refining margins, and operational efficiencies to drive its impressive performance.</li>
<li>Targa Resources Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TRGP#NYSE">TRGP</a>): Targa Resources&#8217; stock witnessed a solid growth rate of 29.19% in Q1. The company, specializing in the gathering, processing, and storage of natural gas and natural gas liquids, benefited from increased demand for natural gas and higher commodity prices.</li>
<li>Diamondback Energy Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NYSE">FANG</a>): Diamondback Energy, an independent oil and natural gas company, saw its stock price surge by 28.61% during the first quarter. The company&#8217;s focus on efficient operations, cost discipline, and strategic asset development contributed to its strong performance amid favorable market conditions.</li>
<li>Phillips 66 (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSX#NYSE">PSX</a>): Phillips 66 is a diversified energy manufacturing and logistics company. Its stock delivered a solid performance with a growth rate of 22.68% in Q1. The company&#8217;s integrated business model, along with its focus on operational excellence and capital discipline, positioned it well to capitalize on improving market dynamics.</li>
</ol>
<h2 class="wp-block-heading">Communication Services: Riding High (+13.25%)</h2>
While the energy sector led the pack, communication services emerged as a close second in terms of performance. The Communication Services Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLC#NYSE">XLC</a>), which adequately represents the sector&#8217;s equity, posted a return of 13.25% over the past 3 months. This sector, encompassing companies involved in telecommunications, media, and entertainment, benefited from various factors driving demand for digital services and content consumption.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="630" height="465" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084256/Screenshot-2024-04-02-at-6.12.16-PM.png" alt="" class="wp-image-273758" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084256/Screenshot-2024-04-02-at-6.12.16-PM.png 630w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/04/02084256/Screenshot-2024-04-02-at-6.12.16-PM-300x221.png 300w" sizes="(max-width: 630px) 100vw, 630px" /></figure>
<a class="c-link" data-stringify-link="https://pro.benzinga.com/dashboard" delay="150" data-sk="tooltip_parent" style="box-sizing: inherit; color: rgba(var(--sk_highlight,18,100,163),1); text-decoration-line: none;" href="https://pro.benzinga.com/dashboard" target="_blank" rel="noopener noreferrer">Chart: Benzinga Pro</a>
Here are the top-performing stocks within the communication services sector:
<ol>
<li>Meta Platforms, Inc. Class A (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>): Formerly known as Facebook, Meta Platforms&#8217; stock witnessed an impressive surge of 38.82% in Q1. The company&#8217;s strategic focus on the metaverse, virtual reality technologies, and digital advertising propelled its stock to new heights, despite regulatory challenges and controversies.</li>
<li>Walt Disney Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>): Walt Disney stock experienced robust growth of 34.60% during the first quarter. The entertainment giant&#8217;s diversified portfolio of media networks, theme parks, and streaming services, coupled with successful content releases and the gradual recovery of the global tourism industry, contributed to its stellar performance.</li>
<li>Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>): Netflix is a leading streaming service provider. Netflix stock&#8217;s performance during the past quarter was solid, recording a growth rate of 26.17% in Q1. The company continued to benefit from the secular shift towards digital streaming, the success of its original content, and its expanding international subscriber base.</li>
<li>Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>): Verizon Communications is a well-known telecommunications company. Its stock posted a respectable gain of 12.15% during the first quarter. The company&#8217;s focus on expanding its 5G network infrastructure, improving customer experiences, and diversifying its revenue streams contributed to its steady growth.</li>
<li>Omnicom Group Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OMC#NYSE">OMC</a>): Leading global marketing and corporate communications company, Omnicom Group&#8217;s stock price rose by 11.64% in Q1. The company&#8217;s diverse range of advertising, marketing, and public relations services, combined with its ability to adapt to evolving consumer trends, supported its solid performance.</li>
</ol>
The first quarter of 2024 witnessed robust performance across various sectors of the S&amp;P 500 index. The energy sector emerged as the top performer, while communication services followed closely behind. The financials sector, as represented by the SPDR Select Sector Fund &#8211; Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>), was up 11.30% while the industrials sector came in fourth at 9.65%. The industrials sector is tracked by the SPDR Select Sector Fund &#8211; Industrial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLI#NYSE">XLI</a>).
Read Next: <a href="https://www.benzinga.com/markets/equities/24/03/37763852/bizarrely-overvalued-s-p-500-could-plummet-49-if-recession-strikes-warns-top-strategist">&#8216;Bizarrely Overvalued&#8217;: S&amp;P 500 Could Plummet 49% If Recession Strikes, Warns Top Strategist</a>
Image generated using artificial intelligence via Midjourney.

Long Ideas

FANG

NFLX

TRGP

S&P 500's Q1 Standouts: Energy, Communication Sectors In The Lead — 10 Top-Performing Stocks

Interest rates are on everyone&#8217;s radar, but what&#8217;s the game plan amid the Federal Reserve&#8217;s decision to hold <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37900527/federal-reserve-pushes-stocks-to-record-highs-as-rate-cuts-loom-nvidia-rallies-appl">steady for now</a>? 
Benzinga interviewed Greg McBride, CFA, Senior Vice President of Bankrate, for his exclusive insights on the current state of the economy and his expectations with the future.
Related: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37900527/federal-reserve-pushes-stocks-to-record-highs-as-rate-cuts-loom-nvidia-rallies-appl">Federal Reserve Pushes Stocks To Record Highs As Rate Cuts Loom, Nvidia Rallies, Apple Faces Legal Woes: This Week In The Markets</a>
<h2 class="wp-block-heading">Interest Rates May Take The Stairs Coming Down</h2>
McBride offered some very actionable insights. In response to a question about the Fed keeping interest rates unchanged this time, McBride said, &#8220;Interest rates took the elevator going up, but they're going to take the stairs coming down.&#8221; 
Per McBride, savers can capitalize on potentially lucrative returns that outpace inflation, from savings accounts, money markets, and CDs, provided they shop around for optimal deals. For borrowers, the mantra remains clear: prioritize slashing high-cost credit card debt.
His advice? &#8220;Always make at least your minimum payment on time – you can always pay more later.&#8221; It&#8217;s about dodging those pesky overdraft fees and late charges.
<h2 class="wp-block-heading">Real Estate Enthusiasts, Brace Yourselves</h2>
McBride&#8217;s forecast suggests a seller&#8217;s market, with limited inventory dictating terms. And falling mortgage rates? They might not spell relief as home prices continue their upward trajectory. &#8220;The housing market will continue to be characterized by high home prices, high financing costs, and a limited number of homes for sale,&#8221; said McBride.
This should be good news for those invested in the Vanguard Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNQ#NYSE">VNQ</a>), the Schwab US REIT ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SCHH#NYSE">SCHH</a>), the Real Estate Select Sector SPDR ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>) or the iShares U.S. Real Estate ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYR#NYSE">IYR</a>). Rising home prices often reflect a healthy real estate market, which can boost the value of real estate assets held within these ETFs.
Investors in mortgage ETFs such as the iShares MBS ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MBB#NYSE">MBB</a>) and the Vanguard Mortgage-Backed Securities ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VMBS#NYSE">VMBS</a>) may see a mixed impact.
Rising home prices can increase the value of mortgage-backed securities (MBS) held within mortgage ETFs. This appreciation can lead to higher returns for investors holding these ETFs. However, higher home prices also make it more challenging for potential homebuyers to afford properties and/or to refinance their existing mortgages, potentially leading to decreased demand for mortgages.
Also Read: <a href="https://www.benzinga.com/real-estate/reit/24/03/37882885/10-real-estate-stocks-move-on-thursday-fed-rate-cut-possibility-sparks-rally-for-troubled-sector">10 Real Estate Stocks Move On Thursday: Fed Rate Cut Possibility Sparks Rally For Troubled Sector</a>
<h2 class="wp-block-heading">Legislative Acts May Sway Sentiment, Let Diversified ETFs Steer Your Ship</h2>
When questioned on legislative juggernauts like the CHIPS Act and Infrastructure Act that promise economic shifts, McBride&#8217;s advice is refreshingly pragmatic: &#8220;Investors are best served building a low-cost, well-diversified portfolio.&#8221; Forget chasing fleeting trends; it&#8217;s consistency that builds wealth, he says.
Exchange-traded funds are a low-cost, diversified way to gain exposure and build wealth consistently. The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), the iShares Core S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IVV#NYSE">IVV</a>) and the Vanguard S&amp;P 500 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOO#NYSE">VOO</a>) are the most popular and largest ETFs for U.S. equity exposure.
When asked about legislative acts impacting consumer sentiment and spending behavior, McBride said, &#8220;When Americans have jobs and paychecks coming in, the money gets spent.&#8221; Legislative acts may sway sentiment, but economic fundamentals steer the ship.
Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/03/37922752/value-growth-stocks-trade-at-record-highs-but-long-term-leadership-lies-with-one-an">Value, Growth Stocks Trade At Record Highs But Long-Term Leadership Lies With One: Analyst</a>
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