The S&P 500 Index is expected to see a double-digit increase in earnings per share (EPS) in 2024, which is great news for investors in funds like the SPDR S&P 500 ETF (SPY), Vanguard S&P 500 ETF (VOO), and iShares Core S&P 500 ETF (IVV).
Certain sectors may not experience the same growth rates, leading investors to look for opportunities that cover multiple high-growth sectors in one fund.
For 2024, sectors expected to drive double-digit EPS growth include Healthcare, Communication Services, and Information Technology. Investors can focus on sector-specific ETFs for more exposure in a particular sector or choose a broad market ETF with allocations in these sectors.
The Invesco QQQ Trust, Series 1 ETF (QQQ) and Invesco NASDAQ 100 ETF (QQQM) track the Nasdaq 100 Index and have a significant allocation to healthcare, technology, and communication services sectors.
Compared to the SPY ETF, QQQ and QQQM may be better positioned to benefit from S&P 500 EPS growth as the Nasdaq-100 Index historically shows stronger growth.
The projected EPS growth is expected to increase notably in 2024, especially in Q4. QQQ and QQQM are heavily invested in sectors expected to drive S&P 500’s EPS and revenue growth for the year.