AUD/USD, ASX 200 SPI Futures: On Alert for Reversal Patterns Ahead of US Inflation

Forex

Summary:

Riskier asset classes have often performed well ahead of US CPI reports recently. For AUD/USD and Australia’s ASX 200 SPI futures, such an environment should be advantageous for near-term gains.

Overview

Riskier asset classes have often performed well ahead of US consumer price inflation reports recently given the likelihood of further softening in housing categories. For AUD/USD and Australia’s ASX 200 SPI futures, such an environment should be advantageous for near-term gains. However, while the Aussie dollar may have room to rally, for Australian equities, that will take them back into territory where they’ve struggled to overcome in the past.

US CPI overrides today’s economic data

I don’t want to totally dismiss the importance of Australian consumer and business confidence figures released on Tuesday, nor China’s latest trade report, but those releases will pale in significance to Wednesday's US CPI report give the implications on how the Fed may proceed with interest rates.

So many markets have been closely aligned with shifts at the front of the US yield curve recently, and I doubt that will change given the difference between a 25 or 50 basis point rate cut from the Fed in September may come down to details in the inflation report.

With US Treasury auctions of three, 10 and 30-year debt scheduled later in the week, it could also heavily influence demand given inflation expectations are a big part of determining relative fair value.

Fed rate cut pricing needs a weak CPI report to be sustained

Heading into the inflation report, Fed funds futures are pricing in around 32 basis points of cuts for the FOMC September meeting, implying a less than quarter chance of a 50 being delivered. Over the course of 2024, 114 basis points are priced with 221.5 expected over the next year. They’re big numbers, no doubt, but even easing of that magnitude would only get the funds rate back to levels where the Fed believes it will neither add to nor detract from inflationary pressures.

AUD/USD, ASX 200 SPI Futures: On Alert for Reversal Patterns Ahead of US Inflation_1

I’m no expert in slicing and dicing the CPI report, but what I know is another modest 0.2% increase in inflation ex-food and energy is expected. With housing components continuing to moderate, generating a disinflationary trend as the largest component in the inflation basket, it may take big increases elsewhere to create an upside surprise.

Should we see another 0.2% gain, the read-through to the Fed’s preferred underlying inflation gage, the core PCE deflator, would point to downside risks given housing is a smaller component in that measure.

In such a scenario, unless the data is so weak that it raises concerns about rapidly softening demand, riskier asset classes are likely to enjoy the prospect of a slightly softer US dollar and lower risk-free Treasury yields.

AUD/USD doing battle with the 50DMA

AUD/USD was unable to benefit from the bounce in commodity prices on Monday, hinting the move in those markets was just a countertrend rally following recent losses. The strength in the US dollar against the Japanese yen was another inhibiting factor, keeping the dollar firm despite the positive risk tone. However, with short-term market positioning now arguably less stretched, and with the focus on the US inflation report, it may provide a window for the Aussie to outperform.

AUD/USD, ASX 200 SPI Futures: On Alert for Reversal Patterns Ahead of US Inflation_2

While there’s no obvious bottoming pattern on the daily chart, those looking for a bounce in the near-term could consider buying dips towards .6656 with a stop below .6648 for protection. Possible targets include .6698 or the intersection of horizontal and downtrend resistance around .6750.

Right now, RSI (14) and MACD are generating negative signals on momentum, so don’t rush in unless you see an obvious signal to get bullish. For mine, if the price were to push through the 50-day moving average, it would improve the prospects of the trade considering how consistently respected it’s been in recent months.

ASX 200 SPI futures near key level

As for ASX 200 SPI futures, the bounce from the 50-day moving average was impressive on the back of decent volumes, sowing the seeds for the bullish candle that printed in overnight trade. With banks, materials and energy sectors outperforming on Wall Street, it bodes well for Australia’s three largest sectors by market cap.

AUD/USD, ASX 200 SPI Futures: On Alert for Reversal Patterns Ahead of US Inflation_3

However, while momentum indicators are generating bullish signals, futures have returned to levels littered with failed breaks and topping patterns. Personally, after the big move we’ve seen, I’m prepared to wait to see whether the price can take out the highs set earlier this year. The recent track record is not great, making the risk-reward for going long at these levels look anything but compelling. If we see a bullish break, great. But if we see another obvious topping pattern, be prepared to fade the bounce.

Support is located at the 50-day moving average, 7871 and 7794. On the topside, watch for selling around 8080 where the last three bullish moves have failed.

Risk Warnings and Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading. Following any strategies or investment methods may lead to potential losses. The content on the site is provided by our contributors and analysts for information purposes only. You are solely responsible for determining whether any trading assets, securities, strategy, or any other product is suitable for investing based on your own investment objectives and financial situation.

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ING

Commodity

Energy – US Gulf storm risks

Oil prices stabilised yesterday and Brent managed to settle 1.1% higher on the day. This is despite a bearish tone coming from APPEC (Asia Pacific Petroleum Conference) Week in Singapore, which kicked off yesterday. Demand concerns are the main focus, particularly when it comes to China. Most are also looking at a well-supplied market in the months ahead.

A bearish outlook leaves OPEC+ with two options. They can continue to try manage supply in order to support prices. However, in doing so, they will be giving market share away to non-OPEC+ producers. The other option is to open the taps in an attempt to push out other producers. Obviously the group would have to be willing to accept much lower prices with this option. While we believe OPEC will follow the former option, there is a risk, particularly if they are having little success in supporting the market, that they decide to pursue the other option at some point through 2025.

Offering some further support to the market is Tropical Storm Francine in the Gulf of Mexico, which is set to be upgraded to a hurricane when it reaches the Louisiana coast on Wednesday. The storm has led some operators to shut platforms. Chevron, Exxon and Shell have already evacuated workers from some platforms. The storm also puts US Gulf Coast refinery operations at risk once it makes landfall.

There is a fair amount on the calendar for today. Firstly, there will likely be further noise coming from APPEC in Singapore. China also releases its first batch of trade data for August, which will offer some more insight into how Chinese oil demand is performing. Crude imports over the first seven months of the year were down 2.4% YoY. OPEC will release its latest monthly oil market report. Last month the group revised its 2024 demand growth estimate down by 130k b/d to 2.11m b/d, while there was also a marginal revision lower in 2025 demand. However, OPEC’s demand numbers are still extremely bullish relative to other estimates and do not align with price action. We could see the group make further downward revisions to their demand estimates today. Finally, the EIA (US Energy Information Administation) will also release its Short Term Energy Outlook today, which will include its latest outlook on the global market and US crude oil production forecasts.

Metals – Iron ore breaks below $90/t

Iron ore prices sank below $90/t for the first time since 2022 yesterday as China gloom continues to deepen. Iron ore is one of the worst-performing commodities so far this year, with prices now down about 33% year-to-date. We believe price risks are increasingly skewed to the downside for the industrial metal as the outlook in China, the biggest buyer, continues to deteriorate. Iron ore port holdings in China continue to rise, now back above 150 million tonnes and standing at their highest ever for the time of year, a sign of abundant seaborne supplies.

Steel inventories at major Chinese steel mills fell to 14.5mt - the lowest level since January - in late August. This was down 11.6% compared to mid-August, according to data from the China Iron and Steel Association (CISA). Steel inventories are 1.2% lower than in the same period last year. Crude steel production at major mills fell by 5.4% from mid-August to 1.89mt/d (the lowest in eight months) in late August, as more domestic steel mills scaled back operations at their blast furnaces in response to heavy losses.

Risk Warnings and Disclaimers

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Glendon

Economic

As we enter 2024, the search for stable income through high-dividend exchange-traded funds (ETFs) continues to be a priority for many investors. High-dividend ETFs are popular for providing consistent income through dividends while offering the added benefit of diversification. In this article, we’ll dive deep into some of the best high-dividend ETFs to consider for 2024, analyzing their performance, yield, and suitability for various investment goals.

Why Invest in High-Dividend ETFs?

High-dividend ETFs allow investors to gain exposure to a basket of dividend-paying stocks while minimizing the risk of holding individual stocks. These ETFs typically consist of companies with a history of paying and growing dividends, such as utility companies, consumer staples, real estate investment trusts (REITs), and more.

Some key reasons to consider high-dividend ETFs in 2024 include:

Income Stability: ETFs provide steady income through dividends, especially important during market volatility.

Diversification: Exposure to multiple dividend-paying stocks across various sectors.

Long-Term Growth: Many dividend-paying companies also offer capital appreciation, making them appealing for long-term investors.

Factors to Consider When Choosing High-Dividend ETFs

When choosing the best high-dividend ETFs, it’s important to look beyond the dividend yield. Here are some key factors to evaluate:

Expense Ratio: The cost of the ETF in terms of annual fees.

Dividend Yield: The annual dividend payment as a percentage of the ETF’s price.

Dividend Growth: The rate at which dividends have grown historically.

Holdings: The types of companies the ETF invests in and their market sectors.

Performance History: How well the ETF has performed compared to benchmarks.

Top High-Dividend ETFs to Watch in 2024

Here’s a breakdown of some of the best high-dividend ETFs to consider for 2024:

1. Vanguard High Dividend Yield ETF (VYM)

Dividend Yield: ~3.4%

Expense Ratio: 0.06%

Holdings: Over 400 U.S. companies with a strong history of dividend payouts.

Overview: VYM is a popular choice for dividend seekers who want to focus on large-cap U.S. companies. The ETF tracks the FTSE High Dividend Yield Index and includes companies like Johnson & Johnson, JPMorgan Chase, and Procter & Gamble. Its low expense ratio makes it cost-effective for long-term investors, and the broad exposure helps reduce risk.

2. iShares Select Dividend ETF (DVY)

Dividend Yield: ~3.7%

Expense Ratio: 0.38%

Holdings: 100 U.S. companies with a focus on mid- and large-cap stocks.

Overview: DVY is designed to provide exposure to companies with a solid history of paying dividends. The ETF focuses on stocks that have a minimum five-year track record of dividends and are selected based on dividend growth and yield. It includes companies from utilities, financials, and consumer staples sectors, making it a diversified option.

3. Schwab U.S. Dividend Equity ETF (SCHD)

Dividend Yield: ~3.3%

Expense Ratio: 0.06%

Holdings: Over 100 high-quality U.S. companies with strong dividends.

Overview: SCHD has gained popularity for its combination of high dividends and growth potential. The ETF focuses on companies with a minimum of 10 years of dividend payments and strong financial health. The fund’s low expense ratio makes it an attractive option for cost-conscious investors.

4. SPDR S&P Dividend ETF (SDY)

Dividend Yield: ~3.6%

Expense Ratio: 0.35%

Holdings: U.S. companies with at least 20 consecutive years of increasing dividends.

Overview: SDY focuses on the S&P High Yield Dividend Aristocrats Index, which includes companies that have consistently increased dividends for at least 20 years. It’s a great option for those seeking both high dividends and strong dividend growth. Top holdings include Exxon Mobil, AT&T, and 3M.

5. Global X SuperDividend ETF (SDIV)

Dividend Yield: ~13%

Expense Ratio: 0.59%

Holdings: 100 global companies with high dividend yields.

Overview: SDIV stands out due to its exceptionally high dividend yield. It invests in a global portfolio of high-yielding stocks, focusing on REITs, financials, and utilities. While the high yield is attractive, investors should be cautious about potential risks, including volatility and dividend sustainability.

6. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)

Dividend Yield: ~4.1%

Expense Ratio: 0.30%

Holdings: 50 stocks from the S&P 500 with high dividends and low volatility.

Overview: SPHD combines high dividend yields with a focus on low-volatility stocks, making it ideal for risk-averse investors. It offers exposure to a range of sectors, including utilities, real estate, and consumer staples. The goal is to provide steady income with less risk during market downturns.

7. iShares International Select Dividend ETF (IDV)

Dividend Yield: ~7.2%

Expense Ratio: 0.49%

Holdings: High-dividend-paying companies outside the U.S., primarily in Europe and the Asia-Pacific region.

Overview: IDV offers investors exposure to international dividend-paying stocks, providing geographical diversification. The ETF includes companies from sectors like financials, energy, and telecommunications, and it has consistently delivered strong dividend yields.

8. First Trust Morningstar Dividend Leaders ETF (FDL)

Dividend Yield: ~3.7%

Expense Ratio: 0.45%

Holdings: U.S. dividend leaders selected based on the Morningstar Dividend Leaders Index.

Overview: FDL is designed to track U.S. companies with strong dividend-paying histories. The ETF includes a mix of large-cap dividend stocks, making it suitable for investors looking for income and stability.

What to Expect from High-Dividend ETFs in 2024

As we move into 2024, the macroeconomic environment will play a significant role in the performance of high-dividend ETFs. Factors such as Federal Reserve interest rate policies, inflation trends, and global economic conditions will impact both dividend payments and stock performance.

Interest Rates: If interest rates continue to rise, some high-dividend stocks may face headwinds, as higher bond yields could compete for investor dollars. However, companies with strong financials and consistent dividend growth should continue to perform well.

Inflation: Inflation can erode purchasing power, but companies in sectors like consumer staples and utilities that are included in many high-dividend ETFs often have the ability to pass on price increases to consumers.

Market Volatility: In times of market uncertainty, high-dividend ETFs often become more appealing as they provide steady income regardless of market fluctuations. Investors seeking stability and regular income may continue to favor these funds.

Conclusion

High-dividend ETFs remain a valuable tool for income-seeking investors in 2024. Whether you are looking for U.S.-focused funds like VYM and DVY or international exposure through IDV, there is a wide array of options to suit different investment styles. While high-dividend yields are attractive, it’s essential to consider the ETF’s expense ratio, holdings, and overall performance history before making a decision.

By diversifying your portfolio with high-dividend ETFs, you can enjoy the benefits of steady income, lower risk, and potential capital appreciation. Keep a close eye on economic trends and market conditions to make the most informed decisions in the coming year.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Owen Li

Rep. Lee Gang-ill of the main opposition Democratic Party of Korea released data from the Financial Supervisory Service, revealing that 65,887 people in their 20s were registered as credit delinquents with the Korea Credit Information Services (KCIS) as of July.

This represents an increase of 25.3 percent in the number of credit delinquents among people in their 20s compared 2021.

Considering that the total number of credit delinquents increased by around 8 percent from 548,730 to 592,567 during the same period, the increase among those in their 20s is even more pronounced.

A credit delinquent is registered with the KCIS when their overdue period exceeds a specified timeframe — three months past the loan's maturity or six months past the due date. These individuals face various financial disadvantages, including the suspension of their credit cards, restrictions on taking out loans, and a drop in their credit ratings.

A notable characteristic of youth debt is the large number of borrowers struggling to repay loans that are under 10 million won ($7,400).

As of July, 73,379 people in their 20s were registered with credit bureaus for short-term delinquencies, excluding credit card payment issues. Among them, 64,624, or 88.1 percent, owed less than 10 million won. This indicates that nearly nine out of ten loan delinquents in their 20s have relatively small amounts of debt.

Rep. Lee noted, that given that the delinquent amounts are relatively small, a significant number of young people seem to be struggling with living expenses or housing costs. He raised concerns that the younger generation is facing economic hardships from high interest rates and inflation, along with difficulties in securing stable jobs due to the economic slowdown.

According to government data, the number of employed individuals aged 15 to 29 has been decreasing annually since November 2022.

In July, the number of young people who were neither employed nor seeking employment reached 443,000.

“Amid the economic slowdown, the reduction in new jobs for people in their 20s has resulted in small loan delinquencies, highlighting the financial difficulties young people face,” Lee said.

“Addressing youth delinquency through financial solutions like debt restructuring alone seems to be insufficient. Comprehensive youth policies, including job creation and broader social policies, must be implemented at the macro level.”

Source: Koreatimes

Risk Warnings and Disclaimers

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Glendon

Economic

As cryptocurrency continues to dominate the financial world, choosing the right exchange platform has become crucial for traders and investors. With the rise in the number of cryptocurrency exchanges, selecting the most suitable one for your needs can be challenging. FintechZoom, a leading financial news platform, has compiled a detailed analysis of the best crypto exchanges of 2024, offering insights into each platform’s features, security, fees, and usability. Whether you’re a beginner or a seasoned trader, this guide will help you make an informed decision.

Key Factors to Consider When Choosing a Crypto Exchange

Before diving into the list of top exchanges, it’s essential to understand the factors that should influence your choice:

Security: The security of your assets should always be a priority. Look for exchanges that have strong security features like two-factor authentication (2FA), cold storage, and insurance against hacking.

Fees: Trading fees can quickly add up, especially for high-frequency traders. Look for platforms with transparent fee structures and low transaction costs.

User Interface and Experience: A user-friendly interface can make trading much easier, especially for beginners. Platforms with simple navigation and clear instructions are ideal for those new to cryptocurrency trading.

Liquidity: Liquidity ensures that you can easily buy or sell your cryptocurrencies without affecting the price. The higher the liquidity, the easier it is to trade.

Range of Cryptocurrencies: Different exchanges offer various cryptocurrencies. If you are interested in altcoins or specific projects, ensure that the platform supports the tokens you wish to trade.

Top Crypto Exchanges of 2024 by FintechZoom

FintechZoom’s analysis ranks the following platforms as the top crypto exchanges for 2024:

1. Binance

Binance continues to dominate the cryptocurrency exchange space in 2024. It offers a vast selection of cryptocurrencies, low trading fees, and high liquidity, making it a favorite among both retail and institutional traders. The platform has strong security features, including its Secure Asset Fund for Users (SAFU), which provides an extra layer of protection.

2. Coinbase

Coinbase remains one of the most popular choices, particularly for beginners. Its user-friendly interface, easy-to-understand fee structure, and insurance on user funds make it a safe option for those entering the crypto space. Although its fees are higher compared to Binance, its seamless experience and customer service are well-regarded.

3. Kraken

Kraken is known for its robust security measures and transparent fee structure. It offers advanced trading features for seasoned traders, including margin and futures trading. Kraken has consistently prioritized user security and is highly respected in the crypto community for its strong compliance with regulatory requirements.

4. Crypto.com

Crypto.com has rapidly grown its user base with its versatile platform offering both an exchange and a DeFi wallet. It boasts low fees and an extensive range of supported cryptocurrencies. The platform’s integrated debit card service also allows users to spend their crypto easily in daily transactions, adding to its appeal.

5. Gemini

Gemini, founded by the Winklevoss twins, is one of the most regulated exchanges in the industry, focusing heavily on compliance and user security. Its strong legal backing and insurance policy on digital assets make it one of the safest platforms to trade on, although its trading fees are slightly higher.

Upcoming Trends in the Crypto Exchange Market

With the expansion of decentralized finance (DeFi), decentralized exchanges (DEXs) are gaining traction. These platforms, like Uniswap and PancakeSwap, allow users to trade without relying on a centralized authority. While they offer greater privacy and control, DEXs often have lower liquidity and are more susceptible to technical issues.

In addition, as global regulations tighten, many exchanges are adopting KYC (Know Your Customer) and AML (Anti-Money Laundering) policies, ensuring a safer trading environment. However, this has caused some users to switch to less-regulated platforms for more anonymity.

The Role of FastBull in the Crypto Market

In recent years, platforms like FastBull have emerged, providing in-depth analysis and insights into financial markets, including cryptocurrencies. FastBull is known for its comprehensive charts, real-time updates, and news feeds that keep traders informed of any critical changes in the market. Its integration with crypto exchanges allows users to track price movements and make data-driven decisions more effectively.

FastBull’s platform also offers risk management tools and sentiment analysis, helping traders navigate the often-volatile crypto market. For those looking for an edge in cryptocurrency trading, FastBull serves as an invaluable resource, particularly for advanced traders seeking detailed technical analysis.

Conclusion

Selecting the right crypto exchange is vital to ensuring a smooth and secure trading experience. FintechZoom’s recommendations, from Binance to Kraken, highlight the top platforms with the best security, liquidity, and user experience. As the market continues to evolve with new trends like DeFi and stricter regulations, platforms such as FastBull offer traders the tools and insights needed to stay ahead of the curve.

Whether you are a novice or an experienced trader, understanding the strengths and weaknesses of each exchange is crucial to navigating the fast-paced world of cryptocurrency.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Glendon

Economic

Index funds have long been a favorite among investors for their low costs, diversification, and reliable returns. As we move into 2024, the appeal of these passive investment vehicles remains strong. With market volatility, inflation concerns, and changes in monetary policy on the horizon, many investors are looking to index funds as a way to achieve stable, long-term growth. Below is an in-depth look at the best index funds to consider for 2024, based on performance, costs, and future growth potential.

1. Vanguard 500 Index Fund (VFIAX)

One of the most popular and best-performing index funds over the years, the Vanguard 500 Index Fund is a go-to for investors looking for broad exposure to the U.S. stock market. This fund tracks the S&P 500, which includes the 500 largest publicly traded companies in the U.S., providing investors with a snapshot of the overall economy.

Performance: Historically, the S&P 500 has provided an average annual return of about 10%. In 2023, despite economic challenges, the index has performed well, reflecting the resilience of large-cap U.S. companies.

Expense Ratio: 0.04%, making it one of the cheapest options for investors.

Outlook for 2024: As inflation cools and the Federal Reserve moderates its monetary policy, large-cap stocks could continue to deliver strong returns, making VFIAX a solid choice for growth-focused investors.

2. Schwab Total Stock Market Index Fund (SWTSX)

For those who prefer even broader market exposure than the S&P 500, the Schwab Total Stock Market Index Fund tracks the entire U.S. equity market, including small-cap and mid-cap stocks that the S&P 500 leaves out. This offers investors the potential to capitalize on growth from smaller companies that may outperform in a recovering economy.

Performance: This fund has consistently mirrored the performance of the total U.S. stock market, which has generally followed a long-term upward trend.

Expense Ratio: 0.03%, one of the lowest available.

Outlook for 2024: With the U.S. economy expected to stabilize, small- and mid-cap stocks could see increased gains, making this a good option for investors looking for broad exposure with growth potential.

3. Fidelity ZERO Large Cap Index Fund (FNILX)

Fidelity’s Zero Large Cap Index Fund is an intriguing option for investors due to its unique pricing structure: it has no expense ratio. While the fund tracks a proprietary index similar to the S&P 500, the performance has been comparable to more traditional index funds tracking large-cap stocks.

Performance: It has tracked the S&P 500 closely, making it an appealing option for cost-conscious investors.

Expense Ratio: 0.00%, a huge draw for those looking to maximize their returns by minimizing fees.

Outlook for 2024: Given the expected stabilization of inflation and interest rates, large-cap stocks are expected to remain steady, providing good growth opportunities for FNILX investors.

4. iShares MSCI Emerging Markets ETF (EEM)

For investors seeking exposure outside the U.S., the iShares MSCI Emerging Markets ETF provides a broad investment in emerging market economies like China, Brazil, and India. These countries are poised for growth as they continue to recover from the economic impacts of the pandemic and global inflationary pressures.

Performance: Emerging markets have been volatile in recent years, but they offer the potential for higher returns over the long term as economies in these regions expand.

Expense Ratio: 0.68%, higher than U.S.-based index funds but reasonable for emerging market exposure.

Outlook for 2024: With global supply chains stabilizing and demand increasing, emerging markets could see strong growth in the coming year, making this ETF a good option for risk-tolerant investors looking for international diversification.

5. Vanguard Real Estate Index Fund (VGSLX)

Real estate index funds offer a way to invest in the real estate market without the risks associated with directly owning property. The Vanguard Real Estate Index Fund tracks the performance of stocks in the REIT (Real Estate Investment Trust) sector, which includes companies that own and operate real estate assets such as office buildings, shopping centers, and apartment complexes.

Performance: Real estate has traditionally been a hedge against inflation and offers a steady stream of dividends through REITs.

Expense Ratio: 0.12%, which is competitive for a sector-specific fund.

Outlook for 2024: As interest rates stabilize, the real estate sector is expected to rebound, making VGSLX a solid option for income-seeking investors who want exposure to real estate without owning physical property.

6. Vanguard Growth Index Fund (VIGAX)

For investors with a higher risk tolerance, the Vanguard Growth Index Fund focuses on growth-oriented companies, which typically reinvest profits into business expansion rather than paying dividends. This fund tracks the CRSP US Large Cap Growth Index, offering exposure to tech giants like Apple, Amazon, and Microsoft.

Performance: Growth stocks have been volatile, especially in a high-interest-rate environment. However, as interest rates level out, growth stocks are expected to outperform again.

Expense Ratio: 0.05%, making it an affordable way to access high-growth companies.

Outlook for 2024: As tech and innovation sectors continue to lead the market recovery, VIGAX is positioned well for investors seeking long-term capital appreciation.

7. SPDR S&P 500 ETF Trust (SPY)

As one of the oldest and largest ETFs, the SPDR S&P 500 ETF Trust offers a straightforward and reliable way to invest in the 500 largest U.S. companies. Its liquidity, low cost, and strong performance make it a favorite among both retail and institutional investors.

Performance: Historically mirrors the S&P 500 with average annual returns around 10%.

Expense Ratio: 0.09%, higher than some competitors but still affordable.

Outlook for 2024: Given its diverse exposure to the U.S. economy and strong track record, SPY is a solid choice for those looking for stability and growth.

8. iShares Russell 2000 ETF (IWM)

Investors interested in small-cap stocks should consider the iShares Russell 2000 ETF, which tracks the Russell 2000 Index, a benchmark for small-cap companies in the U.S. These stocks can offer higher growth potential compared to large-cap stocks, though they are typically more volatile.

Performance: Small-cap stocks have underperformed in recent years, but as the economy recovers, these companies could see outsized gains.

Expense Ratio: 0.19%, higher than large-cap funds but reasonable for small-cap exposure.

Outlook for 2024: As the U.S. economy continues to recover, small-cap stocks are likely to outperform, making IWM a good option for investors seeking high growth.

9. Vanguard International Growth Fund (VWILX)

For those looking for international growth, the Vanguard International Growth Fund invests in companies outside the U.S., primarily in developed and emerging markets. The fund focuses on growth-oriented companies that have the potential to outperform over the long term.

Performance: It has delivered solid returns over the past decade, though international markets have been more volatile.

Expense Ratio: 0.32%, higher than U.S.-focused funds but lower than most international funds.

Outlook for 2024: With global economies stabilizing, this fund offers good diversification for investors looking to add international exposure to their portfolios.

10. Fidelity NASDAQ Composite Index Fund (FNCMX)

For tech-focused investors, the Fidelity NASDAQ Composite Index Fund offers exposure to companies listed on the NASDAQ stock exchange, including tech giants like Apple, Amazon, and Tesla.

Performance: The NASDAQ has been a strong performer over the past decade, driven by growth in the technology sector.

Expense Ratio: 0.29%, which is competitive for a tech-heavy fund.

Outlook for 2024: As technology continues to be a driving force in the global economy, FNCMX is poised for further growth, particularly if inflation moderates and interest rates stabilize.

Conclusion

Index funds continue to be a reliable and accessible investment option for 2024. Whether you're looking for broad market exposure, international diversification, or sector-specific growth, there are numerous index funds that can help you achieve your investment goals. Each of the funds listed offers low fees, strong performance, and diversification, making them excellent choices for both new and experienced investors.

By considering your risk tolerance, investment goals, and market outlook, you can find the best index fund that aligns with your strategy and helps you build a robust, long-term portfolio.

To stay updated on all economic events of today, please check out our Economic calendar

Risk Warnings and Disclaimers

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Alex

Sales of Malaysia’s wholesale and retail trade rose 6.7% year-on-year (y-o-y) to RM149 billion in July 2024, according to the Department of Statistics Malaysia (DOSM).

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said that retail trade grew 6.4% to record RM63.5 billion sales for the month.

“Wholesale trade also went up 5.5% to record RM66.6 billion, followed by motor vehicles with an increase of 12.2% to RM19.0 billion,” he said in a statement on Monday.

On a month-on-month (m-o-m) basis, wholesale and retail trade rebounded 2.1% after dipping 1.3% in June, bolstered by motor vehicle sales which increased 11.6%.

The department said the retail trade sub-sector’s y-o-y growth was led by retail sales in non-specialised stores, which grew 7.7% to RM24.4 billion, while the wholesale trade sub-sector’s y-o-y growth was supported by wholesale of machinery, equipment and supplies, which rose 10.2% to RM5.4 billion.

Meanwhile, the 12.2% y-o-y growth for the motor vehicles sub-sector was driven by the sales of motor vehicles, which recorded a double-digit growth of 14.0%, it said.

For the index of retail sale over the internet, the department said the index grew 5.7% y-o-y in July 2024, compared to 4.8% y-o-y in June 2024. For the seasonally adjusted value, the index inched up 1.5% against the previous month.

In terms of the volume index, DOSM said wholesale and retail trade for July 2024 registered a y-o-y growth of 5.5%, contributed by all sub-sectors, namely motor vehicles (10.8%), wholesale trade (5.2%) and retail trade (4.6%).

“For the seasonally adjusted volume index, it went up 2.1% m-o-m (month-on-month),” it said.

The department noted that the government has declared Oct 20 of each year as the National Statistics Day (MyStats Day), and that this year’s theme is “Statistics is the Essence of Life”.

Source: Theedgemarkets

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Daily News

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AUD/USD, ASX 200 SPI Futures: On Alert for Reversal Patterns Ahead of US Inflation

Overview

US CPI overrides today’s economic data

Fed rate cut pricing needs a weak CPI report to be sustained

AUD/USD doing battle with the 50DMA

ASX 200 SPI futures near key level

The Commodities Feed: Tough Decisions For Opec+

Energy – US Gulf storm risks

Metals – Iron ore breaks below $90/t

Best High-Dividend ETFs to Boost Your Income in 2024

Why Invest in High-Dividend ETFs?

Factors to Consider When Choosing High-Dividend ETFs

Top High-Dividend ETFs to Watch in 2024

1. Vanguard High Dividend Yield ETF (VYM)

2. iShares Select Dividend ETF (DVY)

3. Schwab U.S. Dividend Equity ETF (SCHD)

4. SPDR S&P Dividend ETF (SDY)

5. Global X SuperDividend ETF (SDIV)

6. Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)

7. iShares International Select Dividend ETF (IDV)

8. First Trust Morningstar Dividend Leaders ETF (FDL)

What to Expect from High-Dividend ETFs in 2024

Conclusion

Credit Delinquencies Soar Among Young Koreans Amid Rising Rates, Inflation

Source: Koreatimes

FintechZoom Best Crypto Exchange: Your Guide to Safe & Smart Trading

Key Factors to Consider When Choosing a Crypto Exchange

Top Crypto Exchanges of 2024 by FintechZoom

1. Binance

2. Coinbase

3. Kraken

4. Crypto.com

5. Gemini

Upcoming Trends in the Crypto Exchange Market

The Role of FastBull in the Crypto Market

Conclusion

Top 10 Best Index Funds to Invest in for 2024: Expert Picks for Steady Growth

1. Vanguard 500 Index Fund (VFIAX)

2. Schwab Total Stock Market Index Fund (SWTSX)

3. Fidelity ZERO Large Cap Index Fund (FNILX)

4. iShares MSCI Emerging Markets ETF (EEM)

5. Vanguard Real Estate Index Fund (VGSLX)

6. Vanguard Growth Index Fund (VIGAX)

7. SPDR S&P 500 ETF Trust (SPY)

8. iShares Russell 2000 ETF (IWM)

9. Vanguard International Growth Fund (VWILX)

10. Fidelity NASDAQ Composite Index Fund (FNCMX)

Conclusion

Dosm: Wholesale And Retail Trade Rose 6.7% To Rm149b In July 2024

Source: Theedgemarkets

Risk Disclosure