Which ETF is a strong buy now?

These Sector ETFs Are Leading the Market in 2024

If you're looking for strong performers this year, a few sector-specific ETFs stand out with impressive momentum and low costs. While broad market gains have been steady, some corners of the market are pulling ahead—particularly technology, industrials, and financials.

Vanguard Information Technology ETF (VGT) leads the pack with a 21.4% gain year-to-date. As tech innovation continues to drive earnings—especially in artificial intelligence, cloud computing, and semiconductor markets—VGT offers concentrated exposure to dominant players like Apple, Microsoft, and Nvidia. Its low expense ratio of just 0.09% makes it even more attractive for long-term investors.

Not far behind is the Industrial Select Sector SPDR Fund (XLI), up 17.8% this year. With infrastructure spending, supply chain reshoring, and strong manufacturing demand, industrial stocks have found solid footing. XLI gives targeted access to companies in aerospace, machinery, and electrical equipment, all benefiting from macro tailwinds.

The Financial Select Sector SPDR Fund (XLF) has returned 11.5%, riding higher interest margins and resilient banking fundamentals. As long as rates remain supportive and loan demand holds, financials could continue to outperform. XLF’s 0.08% expense ratio keeps costs minimal while offering exposure to major banks and insurance firms.

Energy Select Sector SPDR Fund (XLE) is up 8.2%, slightly trailing the others but still showing strength amid steady oil prices and disciplined capital spending by energy companies. With dividends often higher than average in this sector, XLE appeals to both growth and income-focused investors. All of these ETFs have ultra-low expense ratios—around 0.08% to 0.09%—making them efficient, liquid, and smart ways to gain exposure to high-performing sectors. While past performance doesn’t guarantee future results, the underlying fundamentals in tech, industrials, and financials suggest these ETFs could remain compelling picks for now.