2024's Top Sectors For A Soft Landing: 3 Industries Leading The Way
Portfolio Pulse from Surbhi Jain
The S&P 500 Index and related ETFs like SPY, IVV, and VOO ended 2023 with 25% gains, driven by Technology and Communication Services sectors. For 2024, Fidelity's sector managers suggest Materials, Industrials, and Consumer Discretionary sectors could lead if the U.S. achieves a soft landing. Materials sector ETFs include XLB and VAW; Industrials are tracked by XLI and VIS; Consumer Discretionary by XLY and VCR.
January 12, 2024 | 9:45 pm
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POSITIVE IMPACT
IVV, mirroring the S&P 500's performance, also saw a 25% increase in 2023. Its future performance could be positively impacted by the growth of the leading sectors in 2024.
IVV's performance is directly correlated with the S&P 500, which is anticipated to be affected by the performance of the sectors expected to lead in 2024.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
SPY, tracking the S&P 500, ended 2023 with a 25% gain. It may continue to perform well if the Materials, Industrials, and Consumer Discretionary sectors lead in 2024.
SPY's performance is closely tied to the S&P 500, which is expected to be influenced by the performance of the leading sectors for 2024 as identified by Fidelity.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
VAW, tracking the Materials sector, could benefit in the short term from the sector's expected alignment with economic growth and its potential as a leader in 2024.
VAW is likely to be positively impacted by the Materials sector's performance, which historically excels during economic recoveries and is anticipated to lead in 2024.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
VCR, tracking the Consumer Discretionary sector, may benefit from the sector's potential growth, especially in retailers with appealing valuations and defensive strategies.
VCR's performance is linked to the Consumer Discretionary sector, which could see growth based on the resilience of U.S. consumers and broader economic factors.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
VIS, which tracks the Industrials sector, may see positive short-term impacts from the sector's expected growth in areas like onshoring and infrastructure.
VIS's performance is closely tied to the Industrials sector, which is anticipated to grow due to investments in various segments, potentially boosting the ETF's performance.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
VOO, which tracks the S&P 500, ended 2023 with significant gains. The ETF could benefit from the expected growth in Materials, Industrials, and Consumer Discretionary sectors in 2024.
VOO's performance is linked to the S&P 500, and it is likely to be influenced by the sectors that are projected to lead in 2024, according to Fidelity's analysis.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
XLB could see a positive impact in the short term as the Materials sector is expected to align with economic growth and has been identified as a potential leader for 2024.
XLB tracks the Materials sector, which is expected to perform well in early phases of economic upswings, as suggested by Fidelity for 2024.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
XLI could experience a short-term boost as the Industrials sector is expected to grow, driven by investments in onshoring, infrastructure, and sustainability.
XLI tracks the Industrials sector, which is expected to see long-term growth and could benefit from an improved U.S. economy in the short term.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
XLY could see a positive short-term impact as the Consumer Discretionary sector is expected to continue its improved performance into 2024.
XLY tracks the Consumer Discretionary sector, which showed resilience in 2023 and is expected to hinge on the economy's health and interest rate trends in 2024.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 85