Tech giants Nvidia, Tesla emerge top US-listed stock picks by Indians in 2024; ETFs gain momentum | Stock Market News

US stock picks: Global markets demonstrated resilience in 2024 amid the uncertainty surrounding the US election results, government policy changes, and shifting economic phases. US equities, particularly small-cap stocks, rallied following Donald Trump’s re-election. Among Indians, US tech stocks emerged as staples for those investing in US markets. Nvidia and Tesla have topped the list, with more than a fourth of investments from India going to them.

According to SEC-registered brokerage and investment advisor Vested Finance, while tech stocks remain the top choice for Indians investing in the US this year, data showed that exchange-traded funds (ETFs) also gained momentum during 2024. According to stock market experts, ETFs, such as leveraged and inverse strategies, add diversity to the portfolio.

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US stock market in 2024

After the US election results, the anticipated extension of tax cuts and fiscal policies to boost American exceptionalism ignited investor optimism. S&P 500 is up 27.62 per cent year-to-date (YTD). In November, the index logged its best month of the year, gaining under six per cent. The Russell Midcap and the Russell 2000 (small-cap) index also posted strong gains during the same period, reflecting broad market strength.

Given numerous global geopolitical crises, changes in governments, and weakening growth in some parts of the world, analysts believe investors should focus on portfolio diversification amid heightened uncertainty.

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The brokerage suggests investors must balance exposure to high-growth sectors, such as technology and renewable energy, with more defensive sectors like healthcare and financials. Emerging market stocks should be monitored, especially regarding currency fluctuations and geopolitical risks.

“While a benign global growth environment justifies some optimism for risky assets, caution is warranted, especially with US equities trading at higher multiples compared to Europe and emerging markets,” said Viram Shah, CEO of Vested Finance, underlining his concerns over valuations in some pockets. 

In terms of market performance, 2024 saw the emergence of sectors beyond communication services and information technology rising to the top. While these two sectors dominated in 2023 and early 2024, financial stocks have taken the lead this year, followed closely by communication services and IT. The utilities sector also marked its rise. According to the brokerage, these sectors have outpaced the broader S&P 500 index in 2024. 

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Top US stocks bought and sold in 2024

Tech stocks showcased their clear dominance, accounting for 46.36 per cent of total buy volume on Vested Finance during 2024. Nvidia (15.97 per cent of buy volume) and Tesla (10.28 per cent) took the lead, reflecting strong investor faith in AI, GPUs, and electric vehicles.

Meanwhile, niche players like Super Micro (3.38 per cent) and MicroStrategy (3.35 per cent) highlight the growing interest in specialized sectors such as data centres and Bitcoin exposure. Other giants like Alphabet (2.57 per cent), AMD (2.53 per cent), Microsoft (2.17 per cent), and Amazon (2.15 per cent) showed investor confidence in cloud computing, digital advertising, and e-commerce. 

Broadcom (1.86 per cent) maintained a solid position, underscoring the continued importance of semiconductors. The top 10 most sold stocks during 2024 were Sea Limited, Allegro Microsystems, Fiverr International, Etsy, DocuSign, RingCentral, Apple, Veeva Systems, Verizon Communications, and Exxon Mobil.

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ETFs gain momentum in 2024

Indians invested the most in ProShares UltraPro QQQ (TQQQ), followed by Direxion Daily Semiconductor Bull 3x Shares (SOXL), demonstrating significant interest in leveraged ETFs. According to Vested Finance, these ETFs aim to amplify returns through leverage, making them suitable for short-term traders looking to capitalize on market movements.

Other ETFs featured in the top five ETF investments from India were Invesco QQQ Trust (QQQ), Vanguard S&P 500 ETF (VOO), and iShares Bitcoin Trust (IBIT). The internal data shows that Indian investments are spread across leveraged ETFs like TQQQ, SOXL, and SPXL, as well as traditional ETFs like QQQ and VOO, highlighting a balanced approach to risk and reward.

Vested Finance provides brokerage services to Indian investors who want to invest in US-listed securities. 

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.