In 2023, ETFs attracted almost $600 billion in net flows. While this is still less than 2021’s $1 trillion record, the market demonstrates promising sustained growth. This is especially interesting for buyback ETFs.

Last year exchange-traded funds investing in United States blue chips from the S&P 500 index attracted the highest share of global inflows into equity-focused ETFs in at least a decade. The Magnificent Seven stocks’ growth influenced the funds’ positions.

The demand for such instruments will most likely continue to grow given their market coverage and lower investment risk. By investing in one ETF, investors can gain instant diversification across a range of assets. This is especially important in volatile market conditions.

There are several well-known indices, based on which the most reliable and profitable ETF funds are created. Below are ETFs that leverage the best stock market indices and have the potential to grow in 2024.

Buyback ETFs: Vanguard Total Stock Market ETF (VTI)

Vanguard Total Stock Market ETF (VTI) provides the broadest coverage of the U.S. stock market. This includes more than 3,500 stocks across a range of capitalizations. Specifically, it consists of 82% large-cap stocks, 12% mid-cap stocks, and 6% small-cap stocks.

Among the biggest competitive advantages of this fund are investment security and diversity. Investors can buy an ETF for the long term and receive a return of about 8% per year. Additionally, VTI covers companies with a wide range of stock prices. Therefore, price movements can be wide and investment returns can be large. This makes VTI a solid candidate among traditional buyback ETFs.

However, since small- and mid-cap stocks historically tend to fluctuate, VTI may be more volatile than VOO, featured below.

Vanguard S&P 500 (VOO)

After the S&P 500 fell more than 20% in 2022, the index hit record highs in 2023, rising by 24%. Since the Fed has repeatedly cut interest rates, the index could be in for another positive year. This will provide a good choice for those looking for buyback ETFs.

The S&P 500 is a stock index that tracks the performance of the 500 largest companies listed on U.S. stock exchanges. The index’s long-term performance has been exceptional, with average annual returns of around 10% over the past five decades.

Although 10% may not seem like the most impressive figure, in the long run, this growth will help accumulate a significant amount of money for investors who regularly top up their investments.

ETFs that track the S&P 500 are often cited among the best ETFs to buy and hold for the long term. One such ETF is the Vanguard S&P 500 UCITS ETF (VOO), which boasts very low fees.

Investment in this S&P 500 ETF offers investors instant diversification into more than 500 successful U.S. companies across a variety of industries. However, investors should be aware that the index’s composition is increasingly filled with technology stocks. This could spell trouble if the industry struggles as it did in 2022.

ProShares Bitcoin Strategy ETF (BTI)

The introduction of spot Bitcoin ETFs is considered a game-changer, expanding the adoption of cryptocurrencies and the potential for digital asset trading to recover after the collapse of FTX. The American market is showing an increase in the share of Bitcoin (BTC-USD) in trading against the US dollar, and open interest in CME Group Bitcoin futures contracts is approaching record levels.

With the launch of nine US Bitcoin ETFs and the conversion of the Grayscale Bitcoin Trust into an ETF, net inflows into these products totalled $4.6 billion, helping to double the price of Bitcoin over the past year.

Trading volume in shares of the first American exchange-traded fund related to bitcoins, Bitcoin Strategy ETF from ProShares (BTI), amounted to $984 million on the day of the fund’s launch. Bitcoin rose above $64,000, almost reaching the record level of April
Shares of the first U.S. bitcoin-related exchange-traded fund, ProShares’ Bitcoin Strategy ETF, rose in price during its trading debut on the New York Stock Exchange. ETF stocks under the ticker BITO rose in price by more than 4.5%, to $41.89 per share. BITO’s trading volume on the fund launch day was approximately $984 million.

With the new ETF, investors may purchase Bitcoin without actually owning it. In the case of ProShares Bitcoin Strategy ETF, the fund is tied to Bitcoin futures, which have been traded on the Chicago Mercantile Exchange since 2017.

Given the upcoming Bitcoin halving and the growing attractiveness of Bitcoin as a diversification tool, BTI opens up new opportunities for investors in the classic market.

On the date of publication, Julia Magas did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.