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Welcome to Betashares Best & Worst for 2024, bringing you insights into our top and bottom performing funds for the year.
Benchmarks (%) |
1 Month |
3 Month |
6 Month |
1 Year |
3 Year (p.a.) |
5 Year (p.a.) |
ASX 200 |
-1.31 |
2.10 |
8.44 |
24.89 |
8.01 |
8.17 |
S&P 500 |
4.96 |
3.35 |
13.10 |
33.41 |
14.18 |
16.44 |
MSCI World |
3.92 |
2.14 |
10.20 |
29.31 |
11.39 |
13.27 |
AusBond Comp |
-1.88 |
-0.39 |
2.26 |
7.08 |
-0.62 |
-0.68 |
Source: Morningstar, Bloomberg. As at 31 December 2024. Past performance is not an indicator of future performance of any index or fund. All performance figures quoted in AUD.
Best* (%) |
1 Month |
3 Month |
6 Month |
1 Year |
3 Year (p.a.) |
5 Year (p.a.) |
Since Inception** |
Fund Inception Date |
GAME |
4.44 |
29.28 |
46.44 |
54.88 |
– |
– |
7.39 |
2/11/2021 |
CRYP |
-14.34 |
44.92 |
34.10 |
52.95 |
-3.36 |
– |
-13.48 |
9/09/2022 |
ATEC |
-4.03 |
9.47 |
21.54 |
41.89 |
9.09 |
– |
17.50 |
8/06/2022 |
Source: Morningstar, Bloomberg. As at 31 December 2024. Past performance is not an indicator of future performance of any index or fund. All performance figures quoted in AUD.
Best:
Betashares Video Games and Esports ETF (ASX: GAME):
Given GAME Video Games and Esports ETF only featured in one Best & Worst last year when it reached third ‘Best’ in November, it may come as a surprise that the Fund topped last year’s list overall (even surpassing the leveraged ETFs which are not included in this list).
The major success story was California-based AppLovin which returned 712.6% in 2024, contributing 32.5% to GAME’s returns. The company has revolutionised mobile gaming advertising by creating a marketplace that brings together game developers who have virtual advertising space for sale, with advertisers looking to purchase this space, while also providing attribution and analytics on ad performance and return on investment1.
The success of GAME in 2024 highlights a key benefit of utilising ETFs in the thematic space: behavioural shifts can often lead to a select handful of companies rising to the top (think any of the magnificent 7). As an investor, casting a wide net is therefore critical to increase the likelihood of capturing one of these ‘winners’ in your portfolio.
Selecting AppLovin as a single stock at the start of the year would have been unlikely to say the least, but investing in 40 top companies involved in a structural megatrend such as video games and e-sports gives exposure to not only the thematic as a whole, but the standout performers who revolutionise the industry.
Betashares Crypto Innovators ETF (ASX: CRYP):
2024 was, as ever, a turbulent year for the crypto market. But the Trump victory in November triggered a surge in digital assets and the ‘picks and shovels’ companies that underpin them.
The Trump Administration’s pro-crypto policies, combined with an upcoming change of leadership at the SEC meant that, once the Republican sweep was confirmed in November, bitcoin jumped 30% in a week, while CRYP Crypto Innovators ETF returned close to 50%, finishing the year with a total return of 52.95% (after a 215% return in 2023)2.
Donald Trump even launched his own memecoin $TRUMP ahead of his 20th January inauguration which somewhat disturbingly (but perhaps not surprisingly) reached a peak market cap of over US$15bn3.
CRYP’s top contributor for the year was MicroStrategy – the largest publicly-traded corporate holder of Bitcoin besides BlackRock’s US-listed ETF. Share prices rose by 359% over the course of the year, which contributed over 26% to CRYP’s annual returns4.
2025 is set to be another spectacle, and for those bullish on crypto, CRYP has historically provided magnified returns on the coins themselves given the crypto exchange and mining companies’ sensitivity to the underlying crypto market. Our Head of Digital Assets, Justin Arzadon wrote an article – what a Trump presidency means for crypto – for those after further insight into the years ahead.
Betashares S&P/ASX Australian Technology ETF (ASX: ATEC):
Despite delivering the third highest returns out of Betashares’ ETF suite in 2024, ATEC may have slipped under the radar for many investors. Domestically, significant focus is currently on the Australian financial sector and soaring valuation multiples. But, despite comprising only 3.1% of the ASX 200, the Australian technology sector punched well above its weight, finishing the year as the highest returning sector in the index (represented by the Betashares Australia 200 ETF)5.
More broadly, Technology as a sector is dominated by international equities and Nasdaq. With an annual return of 37.9% (as represented by the Betashares Nasdaq 100 ETF), even this was topped by ATEC by an additional 4%.
Helping to drive the growth of the Australian tech sector is Government investment, with a 4.7% annual increase to $14.4 billion in 2024-25, as noted in the 2024 Australian Innovation Statistics (AIS). The survey also cites wider business innovation as a driver, although “diffusion, rather than idea creation, is the dominant model of Australian innovation. 94.8% of implemented innovations were existing, rather than ‘new to the world’ innovations”6.
Interestingly, the AIS quotes flat or declining growth in software, machinery and R&D investment in the private sector, suggesting there is still room for further growth if this market segment can be tapped into.
Looking into ATEC’s attribution, 7 out of the 45 holdings doubled their share price over the course of the year7. The top contributors to overall fund returns were Pro Medicus (8.25%), a provider of healthcare informatics solutions8, and WiseTech Global (6.49%), a logistics software company which supplies the world’s biggest transport companies.
Worst* (%) |
1 Month |
3 Month |
6 Month |
1 Year |
3 Year (p.a.) |
5 Year (p.a.) |
Since Inception** |
Fund Inception Date |
QRE |
-2.86 |
-11.04 |
-4.95 |
-15.04 |
5.28 |
7.00 |
3.03 |
10/12/2010 |
GGOV |
-6.49 |
-10.18 |
-3.40 |
-9.75 |
-14.80 |
– |
-10.71 |
7/05/2020 |
URNM |
-8.75 |
0.82 |
-9.56 |
-4.71 |
– |
– |
12.85 |
8/06/2022 |
Source: Morningstar, Bloomberg. As at 31 December 2024. Past performance is not an indicator of future performance of any index or fund. All performance figures quoted in AUD.
Worst:
Betashares Australian Resources Sector ETF (ASX: QRE):
QRE Australian Resources Sector ETF had a stint at the top of the ‘Best’ list in September 2024 after the announcement of fiscal and monetary stimulus measures in China. However, it was soon realised that the extent of the measures was underwhelming, and that it would take considerable time for these modest measures to resuscitate the Chinese economy. Given the reliance on China, the Australian resources sector must either lie in wait until the stimulus gradually feeds through and/or an additional package is implemented.
The cornerstone of the sector, BHP, had a decline in share price of over 20% for the year, caused by not only a slump in sales, but the downward pressure on prices caused by falling resource demand. Iron ore fell by close to 25% in 20249, and according to Westpac, is set to drop a further 30% this year thanks to expanding production by Rio Tinto, with two large-scale projects due to go-live this year10.
Goldman Sachs also warn that the Chinese stimulus measures are likely to have a limited impact on steel consumption (and resulting iron demand). They predict the measures are instead likely to boost copper demand, the other major ore mined by BHP, due to a greater focus on energy transition in the form of nuclear reactors and electric cars. Morgan Stanley backs up the sentiment, citing copper as their preferred base metal for the year ahead11.
The final factor at play is of course the US, with Trump securing the Presidency and already introducing a first round of tariffs on imports. While direct Australian resource exports to the US are relatively modest, the implications of the additional 10% tariff on Chinese goods could further hamper their economic recovery, and the potential rebound of Australia’s resources sector.
Betashares U.S. Treasury Bond 20+ Year ETF – Currency Hedged (ASX: GGOV):
In a year that marked the start of the global easing cycle and 100bps of cuts by the US Federal Reserve, it might seem counter-intuitive that GGOV U.S. Treasury Bond 20+ Year ETF – Currency Hedged , Betashares’ longest duration ETF (excluding geared funds) was the second worst performer of the year.
Long-duration performance in 2024 can be broken into two distinct segments: the first took 10-year US Treasury yields from their peak of 4.70% in April down to 3.62% in mid-September12 when the FOMC met and commenced US rate cuts with a 50 basis point reduction. At this point, markets had already priced in a further 50 basis points of cuts and anticipated this to continue into 2025. GGOV’s total return was 3.80% year-to-date13.
From here, despite the two anticipated rate cuts materialising in November and December, economic data surprised on the up-side, while the US election and a Trump victory implied increased fiscal spending and tax cuts in 2025 and beyond, leading to reflationary fears and a rebound in yields, with US 10-year yields climbing by 79 basis points to 4.57%14. GGOV’s total return was eroded as a result and flipped into negative territory.
Looking forward, term premia is at its highest level in years, indicating relative reward for holding longer dated US treasuries. GGOV provides targeted exposure to 20–30-year US Treasury bonds, offering a compelling opportunity for investors to capitalise if yields reverse lower.
A full breakdown of the Q4 events and outlook for 2025 are available in Betashares’ Fixed Income Quarterly Commentary, written by Head of Fixed Income, Chamath de Silva.
Betashares Global Uranium ETF (ASX: URNM):
URNM Global Uranium ETF featured in 9 of the 12 monthly Best & Worst lists in 2024 (4 times in the ‘Best’, 5 in the ‘Worst’), beaten only by CRYP, featuring above as the second-best performer for the year.
While not inextricably linked, Uranium prices have a significant influence on the performance of the fund, and by the end of the year prices had fallen by approximately 20%15. Supply-side shifts led to this decline, with Kazakhstan – the largest supplier of uranium worldwide – announcing a significant tax increase on uranium mining, while key suppliers such as Kazatomprom made upward revisions to production guidance. Additionally, the US committed US$2.72 billion to expand their domestic nuclear supply chain following the commencement of their ban on Russian-imported uranium.
However, while loosening supply ultimately led to a decline in uranium prices over the course of the year, demand for nuclear power remains stronger than ever. Germany’s 2023 veto of nuclear power aside, global economies are strongly backing fission reactors as an environmentally conscious source of energy. China is at the forefront, commissioning the construction of 30 new reactors16. COP 29 in Baku also reaffirmed the United Nations’ support for nuclear, where an additional six countries joined the declaration to triple global nuclear energy capacity by 205017.
*Excludes short and geared funds, aside from currency.**Annualised for funds with more than 1 year’s performance history.
Sources:
2. Betashares
3. Forbes
4. Morningstar Direct
5. Betashares
7. Morningstar
10. AFR
11. AFR
12. Bloomberg
13. Betashares
14. Bloomberg
17. World-nuclear
Betashares Capital Limited (ABN 78 139 566 868, AFSL 341181) (Betashares) is the issuer of the Betashares Funds. This information is general only, is not personal financial advice, and is not a recommendation to invest in any financial product or to adopt any particular investment strategy. You should make your own assessment of the suitability of this information. It does not take into account any person’s financial objectives, situation or needs. Past performance is not indicative of future performance. Investments in Betashares Funds are subject to investment risk and investors may not get back the full amount originally invested. No assurance is given that any of the companies mentioned above will remain in the relevant fund’s portfolio or will be profitable investments. Any person wishing to invest in a Betashares Fund should obtain a copy of the relevant Product Disclosure Statement and Target Market Determination from www.betashares.com.au and obtain financial and tax advice in light of their individual circumstances.
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