Top-Performing Stock ETFs of the Quarter

Stock exchange-traded funds, or equity ETFs, are often low-cost, tax-efficient instruments for investors to track popular indexes or leverage experienced manager choices to beat the market. The best ones serve as low-cost building blocks in a portfolio, and unlike open-end mutual funds, all ETFs are traded throughout the day on an exchange.

In the second quarter of 2024, the top-performing stock ETFs included large-growth fund HCM Defender 100 Index ETF QQH and large-blend fund Direxion HCM Tactical Enhanced US Equity Strategy ETF HCMT. Data in this article is sourced from Morningstar Direct.

Screening for the Best-Performing ETFs

To find the quarter’s best-performing stock ETFs, we screened the Morningstar US Equity category for funds that trade within the United States. We excluded exchange-traded notes, along with ETFs with less than $100 million in total assets.

Within our list, nine funds fell into the large-growth category, where the average name rose 4.94% in the quarter.

The 10 Best-Performing ETFs for Q2 2024:

1. HCM Defender 100 Index ETF QQH
2. Direxion HCM Tactical Enhanced US Equity Strategy ETF HCMT
3. Fidelity Blue Chip Growth ETF FBCG
4. iShares Russell Top 200 Growth ETF IWY
5. T. Rowe Price Blue Chip Growth ETF TCHP
6. Nuveen Growth Opportunities ETF NUGO
7. Fidelity Enhanced Large Cap Growth ETF FELG
8. Invesco S&P 500 Momentum ETF SPMO
9. Hartford Large Cap Growth ETF HFGO
10. WisdomTree US Quality Growth ETF QGRW

Metrics for the Best-Performing Stock ETFs

HCM Defender 100 Index ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.96%
• Morningstar Category: Large Growth

The $501 million HCM Defender 100 Index ETF was the best-performing ETF in the second quarter, with a 12.14% return. The passively managed Howard Capital Management ETF beat the 4.94% gain on the average fund in the large-growth category for the quarter. Over the last 12 months, the HCM Defender 100 Index ETF has returned 30.70%, outperforming the 29.18% gain on the average fund in its category, leaving it in the 49th percentile.

The HCM Defender 100 Index ETF has a Morningstar Medalist Rating of Bronze. It was launched in October 2019.

Direxion HCM Tactical Enhanced US Equity Strategy ETF

• Morningstar Rating: N/A
• Expense Ratio: 1.17%
• Morningstar Category: Large Blend

The second-best-performing ETF in the quarter was the $353 million Direxion HCM Tactical Enhanced US Equity Strategy ETF. The actively managed Direxion ETF returned 10.23%, outperforming the average large-blend fund, which gained 2.40%. Over the last 12 months, the Direxion HCM Tactical Enhanced US Equity Strategy ETF has returned 32.13%, outperforming the 21.37% return on the average fund in its category, leaving it in the 2nd percentile.

The Neutral-rated Direxion HCM Tactical Enhanced US Equity Strategy ETF was launched in June 2023.

Fidelity Blue Chip Growth ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.59%
• Morningstar Category: Large Growth

The $2 billion Fidelity Blue Chip Growth ETF ranked third for the quarter, returning 10.07%. The Fidelity ETF, which is actively managed, topped the 4.94% average return on funds in the large-growth category for the quarter. Over the last 12 months, the Fidelity ETF has returned 42.57%, ahead of the 29.18% gain on the average fund in its category, leaving it in the 1st percentile.

The Fidelity Blue Chip Growth ETF, launched in June 2020, has a Morningstar Medalist Rating of Silver.

iShares Russell Top 200 Growth ETF

• Morningstar Rating: 5 stars
• Expense Ratio: 0.2%
• Morningstar Category: Large Growth

With a 9.96% return, the $12.1 billion iShares Russell Top 200 Growth ETF ranked fourth in the quarter. The passively managed iShares ETF outperformed the 4.94% return on the average large-growth fund. Over the last 12 months, the fund has gained 36.11%, ahead of the 29.18% return on funds in its category, placing it in the 17th percentile.

The iShares Russell Top 200 Growth ETF has a Silver Morningstar Medalist Rating. It was launched in September 2009.

T. Rowe Price Blue Chip Growth ETF

• Morningstar Rating: 3 stars
• Expense Ratio: 0.57%
• Morningstar Category: Large Growth

The fifth-best-performing ETF was the $709 million T. Rowe Price Blue Chip Growth ETF, which gained 9.64% in the quarter. This actively managed T. Rowe Price ETF beat the 4.94% average return on funds in the large-growth category. Over the past year, the T. Rowe Price Blue Chip Growth ETF rose 38.74%, outperforming the 29.18% return on the average fund in its category and placing it in the 9th percentile.

The T. Rowe Price Blue Chip Growth ETF, launched in August 2020, has a Morningstar Medalist Rating of Silver.

Nuveen Growth Opportunities ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.56%
• Morningstar Category: Large Growth

The $3 billion Nuveen Growth Opportunities ETF was the sixth-best-performing US ETF in the second quarter, with a 9.56% return. The return on the actively managed Nuveen ETF topped the 4.94% gain on the average fund in Morningstar’s large-growth category. Looking back over the last 12 months, the Nuveen Growth Opportunities ETF has returned 41.40%, outperforming the 29.18% return on the average fund in its category, leaving it in the 3rd percentile.

The Silver-rated Nuveen Growth Opportunities ETF was launched in September 2021.

Fidelity Enhanced Large Cap Growth ETF

• Morningstar Rating: 5 stars
• Expense Ratio: 0.18%
• Morningstar Category: Large Growth

The seventh-best-performing ETF in the quarter was the $2.7 billion Fidelity Enhanced Large Cap Growth ETF. The actively managed Fidelity ETF returned 9.26%, outperforming the average large-growth fund, which gained 4.94%. Looking back over the last 12 months, the Fidelity Enhanced Large Cap Growth ETF has returned 35.41%, outperforming the 29.18% return on the average fund in its category, leaving it in the 22nd percentile.

The Fidelity Enhanced Large Cap Growth ETF has a Morningstar Medalist Rating of Gold. It was launched in April 2007.

Invesco S&P 500 Momentum ETF

• Morningstar Rating: 4 stars
• Expense Ratio: 0.13%
• Morningstar Category: Large Growth

The $2 billion Invesco S&P 500 Momentum ETF ranked eighth for the quarter, returning 9.26%. The Invesco ETF, which is passively managed, topped the 4.94% average gain on funds in the large-growth category. Over the last 12 months, the Invesco ETF has returned 57.65%, ahead of the 29.18% return on the average fund in its category, leaving it in the 1st percentile for performance.

The Bronze-rated Invesco S&P 500 Momentum ETF was launched in October 2015.

Hartford Large Cap Growth ETF

• Morningstar Rating: N/A
• Expense Ratio: 0.6%
• Morningstar Category: Large Growth

With a 9.20% gain, the $130 million Hartford Large Cap Growth ETF ranked ninth in the quarter. The actively managed Hartford Funds ETF outperformed the 4.94% return on the average large-growth fund. Over the last 12 months, the fund has returned 36.99%, ahead of the 29.18% return on funds in its category, placing it in the 14th percentile.

The Hartford Large Cap Growth ETF, launched in November 2021, has a Morningstar Medalist Rating of Neutral.

WisdomTree US Quality Growth Fund

• Morningstar Rating: N/A
• Expense Ratio: 0.28%
• Morningstar Category: Large Growth

The tenth-best-performing ETF was the $440 million WisdomTree US Quality Growth Fund, which gained 9.03% in the quarter. The passively managed WisdomTree ETF beat the 4.94% average return on funds in the large-growth category. Over the past year, the WisdomTree US Quality Growth Fund rose 35.84%, outperforming the 29.18% return on the average fund in its category and placing it in the 19th percentile.

The WisdomTree US Quality Growth Fund has a Morningstar Medalist Rating of Gold. It was launched in December 2022.

What Are ETFs?

Exchange-traded funds are investments that trade throughout the day on stock exchanges, much like individual stocks. They differ from traditional mutual funds—known as open-end funds—which can only be bought or sold at a single price each day. Historically, ETFs have tracked indexes, but in recent years, more have been actively managed. ETFs cover a range of asset classes, including stocks, bonds, commodities, and most recently cryptocurrency.

ETFs offer investors an efficient way to gain exposure to the markets, often with low fees and ease of buying and selling. They also generally offer higher tax efficiency than open-end funds.

The Best Stock ETFs: More Ideas to Consider

Investors who would like to find more of the top-performing or cheapest ETFs can do the following:

• Read Morningstar’s guide to ETF investing.
• Explore the best ETFs and how they fit into your portfolio.
• Review the full list of US Stock ETFs. Funds with at least 70% of assets in US stocks are placed within the US equity categories.
• Use the Morningstar Investor Screener tool to find the best ETFs according to your specific criteria. You can search for funds based on their fees, Morningstar Medalist Ratings, manager tenures, and more.
• Use Morningstar Investor to build a watchlist of the best ETFs and easily follow their valuations, ratings, and fees.
• Watch our ETF video series, hosted by Daniel Sotiroff, for ideas to consider.