The Fastest-Growing Funds of 2024: Finfluencers and Digital Trends reshaping the Investment Landscape

Analysis and themes

Digital and Thematic Funds Dominate Growth

Funds targeting emerging industries, particularly in digital and crypto-related sectors, are leading the charge. For instance, the Schwab Crypto Thematic ETF (STCE) boasts an impressive 89.43% one-year return, while the Fidelity Crypto Industry and Digital Payments ETF (FDIG) follows closely with an 84.33% return. This trend underscores a growing investor appetite for exposure to innovative and high-risk, high-reward markets.

Tech-Driven Portfolios Continue to Outperform

Technology-focused funds remain a safe bet for significant returns. The Semiconductors Portfolio (FSELX) delivered a robust 61.72% one-year return, reflecting continued optimism around semiconductor demand fueled by AI, automation, and cloud computing advancements. Asset managers should prioritize or enhance allocations in technology-related themes to capitalize on this momentum.

Blue Chip Growth Funds Hold Steady Appeal

While thematic and sector-specific funds lead in growth, diversified large-cap growth funds still provide consistent high returns. For example, the Fidelity Blue Chip Growth ETF (FBCG) and the Fidelity Series Blue Chip Growth Fund (FSBDX) achieved 45.04% and 44.05% returns, respectively. These funds serve as a balanced option for investors seeking growth with moderate risk, reinforcing the value of blue-chip equities in a well-rounded portfolio.

Examples: Schwab Crypto Thematic ETF (STCE), Fidelity Crypto Industry and Digital Payments ETF (FDIG)

Characteristics:

• Heavy exposure to blockchain technology, digital payment platforms, and cryptocurrency-related assets.
• Likely asset allocation includes:
• Crypto-related equities (e.g., Coinbase, Block, MicroStrategy).
• Payment processors (e.g., Visa, Mastercard, PayPal).
• Blockchain infrastructure firms (e.g., NVIDIA for GPUs, blockchain startups).

Investor Appeal: High growth potential but significant volatility; attracts tech-savvy and risk-tolerant investors.

Examples: Semiconductors Portfolio (FSELX)

Characteristics:

• Concentrated in technology sectors, particularly semiconductor companies driving advancements in AI, 5G, and IoT.
• Likely asset allocation includes:
• Semiconductor manufacturers (e.g., Intel, TSMC, AMD).
• Technology providers (e.g., Apple, Microsoft, Google).
• Research and development firms.

Investor Appeal: Moderate-to-high risk; favoured by investors seeking exposure to long-term tech trends.

Examples: Fidelity Blue Chip Growth ETF (FBCG), Fidelity Series Blue Chip Growth Fund (FSBDX)

Characteristics:

• Focus on large-cap companies with stable growth trajectories.
• Likely asset allocation includes:
• Diversified sectors: Tech, healthcare, consumer discretionary, and financials.
• High-growth stocks: Amazon, Meta, Tesla.
• Defensive equities: Utilities and healthcare companies for risk balancing.

Investor Appeal: Low-to-moderate risk; appeals to growth-oriented investors with a longer time horizon.

What are Marketing Teams focusing on?

Asset management firms have effectively utilized digital marketing campaigns to promote digital funds, leveraging innovative strategies to engage investors. Notable examples include:

Invesco launched a comprehensive digital marketing campaign to promote its QQQ ETF, focusing on innovation and technology themes. The campaign featured collaborations with influencers, including retired WNBA star Candace Parker, who shared personal growth stories paralleling investment journeys. This approach humanized the investment process, making it relatable to a broader audience. Additionally, Invesco partnered with celebrity chefs like Marcus Samuelsson to create the “Recipe for Innovation” series, aligning culinary creativity with investment strategies. These initiatives were disseminated across social media platforms, enhancing engagement and brand visibility. (Financial Times)

KraneShares, an ETF provider, effectively utilized influencer marketing to promote its digital funds during the COVID-19 pandemic. Collaborating with popular financial podcasts such as “Animal Spirits,” hosted by Ritholtz Wealth Management’s Ben Carlson and Michael Batnick, KraneShares reached a dedicated audience of investors. By engaging with trusted voices in the financial community, the firm enhanced credibility and expanded its reach. This strategy was particularly effective in maintaining investor engagement during a time when traditional marketing channels were limited. (Financial Times)

For instance, Jonathan Shelon, COO of KraneShares, appeared on the “Animal Spirits” podcast to discuss internet growth in China and the KLIP ETF’s strategy for generating high yields through covered calls. (Apple Podcasts)

Additionally, Brendan Ahern, CIO of KraneShares, joined the podcast to talk about the creation of KraneShares’ Luxury ETF, demographic trends, and investing in international markets. (Apple Podcasts)

These engagements allowed KraneShares to effectively communicate its investment strategies and insights to a broader audience through trusted financial influencers.