There’s a glaring problem with the market in Canada. And that’s the enormous focus on oil and gas producers. No matter how you feel about climate change and the environment, it cannot be denied that there is a heavy focus on this industry. And that can be problematic when we need diversification within our markets — especially if you’re investing in an exchange-traded fund (ETF) that tracks the TSX.
Today, we’re instead going to look at the three best-performing ETFs for 2024 so far this year. From there, investors can look at what ETFs might make sense in their portfolios.
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CLML
First up, we have a bit of a surprise with CI Global Climate Leaders ETF (TSX: CLML). A surprise because if you look at renewable energy equities, these have not fared well in 2024. However, CLML ETF is currently up by almost 36% year to date as of writing.
The ETF focuses on companies that demonstrate leadership in climate-related initiatives. This ETF aims to provide investors with exposure to companies that are actively addressing climate change through their business practices, products, and services.
CLML typically invests in companies across various sectors that are leading the transition to a low-carbon economy. These sectors may include renewable energy, clean technology, energy efficiency, sustainable agriculture, and more.
By investing in companies that are proactive in addressing climate change, the ETF seeks to align investors’ portfolios with the transition to a more sustainable future while potentially providing attractive returns. And it’s done just that, particularly from a heavy investment in Nvidia and Constellation Energy.
COPP
Another area of the market seeing immense strength comes from commodities, specifically copper. The Horizons Copper Producers Index ETF (TSX: COPP) has climbed almost 30% year to date as of writing. Again, that could rise even higher this year as we continue to see a high demand for copper.
Copper is a vital industrial metal widely used in various sectors, including construction, electronics, transportation, and renewable energy infrastructure. As such, the demand for copper is often considered a barometre for economic activity and industrial growth.
The Horizons Copper Producers Index ETF invests primarily in companies involved in the exploration, development, and production of copper. These companies may include mining corporations engaged in the extraction of copper from ore deposits worldwide.
Some of its biggest winners in this case have been Lundin Mining as well as Capstone Copper. And again, these are due to climb even higher in 2024.
CINV
Finally, the last on our list is CI Global Alpha Innovation ETF C$ Series (TSX: CINV), with shares up 13% year to date as of writing. This ETF is positioned to track the large-cap technology stocks that have been benefitting from the huge investment into artificial intelligence (AI).
But the fund doesn’t only focus on AI. This ETF aims to provide investors with exposure to companies at the forefront of innovation across various sectors, including technology, healthcare, consumer discretionary, and more.
CINV ETF then seeks to capitalize on companies that are driving innovation and disruption within their respective industries. These companies may include established market leaders as well as up-and-coming firms with disruptive technologies or business models. The ETF’s investment strategy focuses on identifying companies with high growth potential and competitive advantages stemming from innovation.
Some of its greatest winners this year include, of course, NVIDIA stock, as well as Amazon.
