We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
European Central Bank President Christine Lagarde, speaking at a Bloomberg panel during the World Economic Forum in Davos, Switzerland, expressed that a return to economic "normality" in 2024 remains unlikely, as quoted on CNBC. She described the post-pandemic era as "strange, extraordinary and difficult to analyze." Lagarde highlighted three main trends that began to normalize in the past year: consumption, trade, and inflation.
Pandemic Impact and Subsequent Changes
The pandemic led to decreased spending and increased savings among people, alongside disruptions in global trade. Euro zone inflation peaked at 10.6% in October 2022 but declined to 2.9% by December 2023.
Global Trade and Inflation Trends
Trade was initially affected by a shift in consumer preference from goods to services in 2021 and 2022. However, Lagarde observed a recovery in trade, with global trade numbers rising for the first time in months by October. The World Trade Organization forecasts a 3.3% increase in trade for 2024. Inflation also showed a broad decline in 2023.
WTO Director General's View
WTO Director General Ngozi Okonjo-Iweala concurred with the notion of moving towards normalization but emphasized that it's still not "normal," as trade growth lags behind GDP growth. She pointed out the difficulties in forecasting due to geopolitical conflicts and other global uncertainties.
Germany's Economic Situation: A 'New Normal'
German Finance Minister Christian Lindner characterized the current economic state as a "new normal," marking 2023 as a turning point. He highlighted challenges such as the rise of artificial intelligence, geopolitical tensions, higher debt levels, and limited growth prospects. Germany, Europe's largest economy, experienced a 0.3% contraction year-over-year in 2023, narrowly avoiding a technical recession.
ETFs in Focus
Against this backdrop, below we highlight a few ETFs that should stay in focus in the near term.
First Trust Dow Jones Internet Index Fund (FDN - Free Report)
The fund seeks investment results that generally correspond to the price and yield of the Dow Jones Internet Composite Index. The fund charges 52 bps in fees.
The underlying ProShares Online Retail Index is a specialized retail index that tracks retailers that principally sell online or through other non-store channels. The fund charges 58 bps in fees.
The underlying Indxx Global FinTech Thematic Index invests in companies on the leading edge of the emerging financial technology sector, which encompasses a range of innovations helping to transform established industries like insurance, investing, fundraising, and third-party lending through unique mobile and digital solutions. The fund charges 68 bps in fees.
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report)
The underlying Indxx Global Robotics & Artificial Intelligence Thematic Index invests in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence, including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles. The fund charges 69 bps in fees.
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
New Normal Trend to Stay in 2024? ETFs in Focus
European Central Bank President Christine Lagarde, speaking at a Bloomberg panel during the World Economic Forum in Davos, Switzerland, expressed that a return to economic "normality" in 2024 remains unlikely, as quoted on CNBC. She described the post-pandemic era as "strange, extraordinary and difficult to analyze." Lagarde highlighted three main trends that began to normalize in the past year: consumption, trade, and inflation.
Pandemic Impact and Subsequent Changes
The pandemic led to decreased spending and increased savings among people, alongside disruptions in global trade. Euro zone inflation peaked at 10.6% in October 2022 but declined to 2.9% by December 2023.
Global Trade and Inflation Trends
Trade was initially affected by a shift in consumer preference from goods to services in 2021 and 2022. However, Lagarde observed a recovery in trade, with global trade numbers rising for the first time in months by October. The World Trade Organization forecasts a 3.3% increase in trade for 2024. Inflation also showed a broad decline in 2023.
WTO Director General's View
WTO Director General Ngozi Okonjo-Iweala concurred with the notion of moving towards normalization but emphasized that it's still not "normal," as trade growth lags behind GDP growth. She pointed out the difficulties in forecasting due to geopolitical conflicts and other global uncertainties.
Germany's Economic Situation: A 'New Normal'
German Finance Minister Christian Lindner characterized the current economic state as a "new normal," marking 2023 as a turning point. He highlighted challenges such as the rise of artificial intelligence, geopolitical tensions, higher debt levels, and limited growth prospects. Germany, Europe's largest economy, experienced a 0.3% contraction year-over-year in 2023, narrowly avoiding a technical recession.
ETFs in Focus
Against this backdrop, below we highlight a few ETFs that should stay in focus in the near term.
First Trust Dow Jones Internet Index Fund (FDN - Free Report)
The fund seeks investment results that generally correspond to the price and yield of the Dow Jones Internet Composite Index. The fund charges 52 bps in fees.
ProShares Online Retail ETF (ONLN - Free Report)
The underlying ProShares Online Retail Index is a specialized retail index that tracks retailers that principally sell online or through other non-store channels. The fund charges 58 bps in fees.
Global X FinTech ETF (FINX - Free Report)
The underlying Indxx Global FinTech Thematic Index invests in companies on the leading edge of the emerging financial technology sector, which encompasses a range of innovations helping to transform established industries like insurance, investing, fundraising, and third-party lending through unique mobile and digital solutions. The fund charges 68 bps in fees.
Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report)
The underlying Indxx Global Robotics & Artificial Intelligence Thematic Index invests in companies that potentially stand to benefit from increased adoption and utilization of robotics and artificial intelligence, including those involved with industrial robotics and automation, non-industrial robots, and autonomous vehicles. The fund charges 69 bps in fees.
(Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.)