US tech giants Nvidia, Tesla emerge top US-listed stock picks for Indians in 2024; ETFs gain momentum

Global markets demonstrated resilience amid the uncertainty surrounding the US election results, government policy changes, and shifting economic conditions. US equities, particularly small-cap stocks, rallied following Donald Trump’s re-election and the Republican party’s strengthened position in Congress. Growth stocks slightly outperformed value stocks, and the US dollar surged, reflecting market anticipation of inflationary pressures tied to the new administration’s policies.

Tech stocks have been staples for investors investing in the US. NVIDIA and Tesla have topped the list with more than a fourth of investments from India going to them, showed Vested Finance data. While tech stocks remain the top choice for Indians investing in the US, Vested Finance data shows interest in ETFs that give diversity to the portfolio such as leveraged and inverse strategies also gained momentum during 2024.

Amid heightened uncertainty given numerous global geopolitical crises, change in governments, and weakening growth in some parts of the world, investors should keep their focus on diversification, believes Vested Finance.

Investors need to balance exposure to high-growth sectors, such as technology and renewable energy, with more defensive sectors like healthcare and financials. Emerging market stocks should be monitored closely, especially in light of currency fluctuations and geopolitical risks.

“While a benign global growth environment justifies some optimism for risky assets, caution is warranted, especially with US equities trading at higher multiples compared to Europe and emerging markets,” said Viram Shah, CEO, Vested Finance, underlining his concerns over valuations in some pockets. Vested Finance provides brokerage services to Indian investors who want to invest in US-listed securities.

In terms of market performance, the year 2024 saw the emergence of sectors beyond communication services and information technology rising to the top. While these two sectors dominated in 2023 and early 2024, financial stocks have taken the lead this year, followed closely by communication services, information technology. The utilities sector also marked its rise. These four sectors have outpaced the broader S&P 500 index.

Top bought and sold stocks

Tech stocks showcased their clear dominance, accounting for 46.36% of total buy volume on Vested Finance during 2024. NVIDIA (15.97% of buy volume) and Tesla (10.28%) took the lead, reflecting strong investor faith in AI, GPUs, and electric vehicles.

Meanwhile, niche players like Super Micro (3.38%) and MicroStrategy (3.35%) highlight growing interest in specialized sectors such as data centers and Bitcoin exposure. Other giants like Alphabet (2.57%), AMD (2.53%), Microsoft (2.17%), and Amazon (2.15%) showed sustained investor confidence in cloud computing, digital advertising, and e-commerce. Broadcom (1.86%) maintained a solid position, underscoring the continued importance of semiconductors.

The top 10 most sold stocks during 2024 were Sea Limited (SE), Allegro Microsystems (ALGM), Fiverr International (FVRR), Etsy (ETSY), DocuSign (DOCU), RingCentral (RNG), Apple (AAPL), Veeva Systems (VEEV), Verizon Communications (VZ), and Exxon Mobil (XOM).

ETFs also popular options

ProShares UltraPro QQQ (TQQQ) had the highest investment amount by Indians, followed by Direxion Daily Semiconductor Bull 3x Shares (SOXL) demonstrating significant interest in leveraged ETFs. These ETFs aim to amplify returns through the use of leverage, making them suitable for short-term traders looking to capitalize on market movements.

Invesco QQQ Trust (QQQ), Vanguard S&P 500 ETF (VOO) and iShares Bitcoin Trust (IBIT) were other ETFs featuring in top 5 ETF investments from India.

The internal data shows that investments from Indians are spread across leveraged ETFs like TQQQ, SOXL, and SPXL, as well as traditional ETFs like QQQ and VOO, highlighting a balanced approach to risk and reward.