Image Source: PixabayThe start of 2024 has been weak for the global stock market after a blockbuster 2023. In fact. the U.S. stock market had its worst start in several decades on overbought conditions, which resulted in a cautious approach among investors and the rotation from high-performing stocks to those perceived as undervalued.Still, a few corners of the stock market are outperforming, pushing ETFs to new 52-week highs. Financial Select Sector SPDR Fund (XLF), VanEck Vectors Pharmaceutical ETF (PPH), Invesco S&P 500 Enhanced Value ETF (SPVU), iShares MSCI India ETF (INDA) and WisdomTree Japan Hedged SmallCap Equity Fund (DXJS).A high level of market euphoria has set the stage for a potential reversal at the start of 2024. Uncertainty about when the Fed will begin to cut rates has dampened investors’ optimism. The latest Fed minutes showed that it wouldn’t cut rates as aggressively as expected for this year. This suggests an uncertain path toward interest rate cuts and reflects a growing sense that inflation is under control (read: Time for Emerging Markets ETFs?).The disappointing manufacturing data also added to the chaos. The U.S. manufacturing sector slipped further into contraction during December, according to the latest PMI data from S&P Global, as output declined and the downturn in new orders gathered pace.Here, we have discussed the abovementioned ETFs in detail with reasons for their strong performance.Financials – Financial Select Sector SPDR FundThe financial sector extended its strong rally to start 2024 on the prospect of falling interest rates, which would lower funding costs and the price of credit, thereby leading to high loan demand in the year ahead. The Financial Select Sector SPDR Fund is the ultra-popular ETF in the financial space with AUM of $34.4 billion and average daily volume of 37 million shares.It seeks to provide exposure to 72 companies in diversified financial services, insurance, banks, capital markets, mortgage real estate investment trusts, consumer finance, and thrifts and mortgage finance industries. Financial Select Sector SPDR Fund follows the Financial Select Sector Index, charging investors 10 bps in fees per year. It carries a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: 5 Power-Packed ETFs to Buy for 2024).Healthcare – VanEck Vectors Pharmaceutical ETFThe healthcare sector has been on a tear on the back of some sector rotation along with strength in biotechnology and pharmaceutical firms. Investors are in search of cheap stocks for their portfolios after a huge surge in 2023. Healthcare stocks didn’t explode much last year amid the broad market rally. VanEck Vectors Pharmaceutical ETF follows the MVIS US Listed Pharmaceutical 25 Index, which measures the performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well as production, marketing and sales of pharmaceuticals. It holds 26 stocks in its basket.VanEck Vectors Pharmaceutical ETF has amassed $437.1 million in its asset base and trades in a good volume of about 101,000 shares a day. It charges 36 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.Value – Invesco S&P 500 Enhanced Value ETFWith faltering big tech and rising yields, the appeal for value investing has returned. It indicates a big reversal from 2023, where growth investing took charge. Value investing involves buying stocks that are believed to be undervalued or trading below their intrinsic worth. Invesco S&P 500 Enhanced Value ETF follows the S&P 500 Enhanced Value Index, which measures the performance of stocks in the S&P 500 Index that have the highest “value score.” The product holds 101 stocks in its basket with key holdings in financials, energy and healthcare (read: Value ETFs Reach New 52-Week High to Start 2024).Invesco S&P 500 Enhanced Value ETF has accumulated $89 million in AUM while trading in a light average daily volume of 11,000 shares. The product charges 13 bps in annual fees and has a Zacks ETF Rank #1 with a Medium risk outlook.India – iShares MSCI India ETFIndia’s economy is in a good shape with robust domestic demand and strong growth in the manufacturing and services sectors. India is set be the fastest growing economy in the G20 grouping of large nations and the stocks in the country are capitalizing on this growth. iShares MSCI India ETF offers exposure to large and mid-cap companies in India by tracking the MSCI India Index and charging 65 bps in fees per year from investors. Holding 131 stocks in its basket, the fund is highly concentrated on the top firm with near double-digit allocation. Financials dominates the fund’s portfolio with 26.2% share, closely followed by information technology (12.5%), consumer discretionary (11.5%) and energy (10.4%).iShares MSCI India ETF is the largest and the most popular ETF in this space, with AUM of $8 billion and an average trading volume of 3 million shares a day. It has a Zacks ETF Rank #3 with a Medium risk outlook.Japan – WisdomTree Japan Hedged SmallCap Equity FundJapan stocks rose on a weaker yen, which spurred the buying by exporters, including automakers and financials, amid a continued hunt for value stocks. This benefited the currency-hedged ETFs in particular, as these funds look to strip out currency exposure to a foreign economy via the use of currency forwards or other instruments that bet against the non-dollar currency while offering exposure to foreign stocks.With AUM of $53.8 million, WisdomTree Japan Hedged SmallCap Equity Fund offers exposure to the small-cap segment of Japan’s equity market while hedging exposure to fluctuations between the U.S. dollar and the yen. It follows the WisdomTree Japan Hedged SmallCap Equity Index. WisdomTree Japan Hedged SmallCap Equity Fund trades in a solid volume of 40,000 shares per day and charges 58 bps in annual fees.More By This Author:3 Oil & Gas Pipeline Stocks To Gain From The Prospering IndustryFord Sells 2M Vehicles In The US In 2023, Gains 7.1% Y/Y3 Internet Stocks To Watch From A Challenging Industry