Image Source: PixabayThis year is proving to be a banner year for the stock market, with the S&P 500 Index and the Nasdaq Composite Index hitting a series of record highs. The S&P 500 has now crossed the 5,500 level for the first time after hitting the 5,400 threshold earlier this month and 5,300 last month, underscoring strong confidence.Rate cut bets, strong corporate profit growth, a surge in “Magnificent Seven” stocks, and the ongoing artificial intelligence (AI) craze have been driving the rally this year and will continue to do so for the rest of the year.The winners are broad-based across the sectors, with technology being the star performer, building up massive gains this year. We have presented a bunch of top-performing ETFs from various corners of the market that have gained more than 30% in the first half of 2024. These are VanEck Vectors Semiconductor ETF (SMH – Free Report), First Trust SkyBridge Crypto Industry & Digital Economy ETF (CRPT – Free Report), Invesco S&P 500 Momentum ETF (SPMO – Free Report), Gabelli Growth Innovators ETF (GGRW – Free Report) and Roundhill Magnificent Seven ETF (MAGS – Free Report).

Behind the Solid Performance
 The “Magnificent Seven” is the biggest growth engine for the stock market surge. It now accounts for 31% of the weightage in the S&P 500. The expansion of AI applications holds the promise of ushering in fresh growth opportunities. According to a new report by Grand View Research, the global artificial intelligence market is expected to witness a CAGR (2024-2030) of 36.6% to reach $811.75 billion by 2030 and continue to drive the market higher.Further, large-cap stocks have shown strong resilience to longer-than-expected periods of higher interest rates. This is because these stocks are less volatile, have a steady dividend stream, and offer stability. Large-cap companies, especially those with pricing power, can better navigate inflationary pressure by passing on costs to consumers. This makes them attractive to investors looking for inflation protection amid sticky inflation.In the latest FOMC meeting concluded yesterday, U.S. policymakers penciled in just one rate cut for this year and foresee four cuts for 2025. Low rates are generally favorable for stocks as they reduce the cost of borrowing, often needed to finance the expansion of companies. Lower rates typically reduce the attractiveness of fixed-income investments like bonds, leading investors to seek higher returns in the equity markets.Let’s dig into the details of the abovementioned ETFs:VanEck Vectors Semiconductor ETF – Up 53.8%VanEck Vectors Semiconductor ETF offers exposure to companies involved in semiconductor production and equipment. It follows the MVIS US Listed Semiconductor 25 Index and holds 26 stocks in its basket. VanEck Vectors Semiconductor ETF has managed assets worth $24 billion and charges 35 bps in annual fees and expenses. SMH trades in an average daily volume of 7 million shares and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.First Trust SkyBridge Crypto Industry & Digital Economy ETF – Up 47.9%First Trust SkyBridge Crypto Industry and Digital Economy ETF is designed to provide exposure to companies that SkyBridge believes are driving cryptocurrency, crypto assets and digital economy-related innovation. SkyBridge identifies securities primarily via “bottom-up” research focused on finding companies leading in the crypto industry ecosystem. First Trust SkyBridge Crypto Industry & Digital Economy ETF holds 30 stocks in its basket and charges 85 bps in fees per year from investors. It has amassed $63.4 million in its asset base and trades in an average daily volume of 62,000 shares.Invesco S&P 500 Momentum ETF – Up 34.5%Invesco S&P 500 Momentum ETF tracks the S&P 500 Momentum Index, which measures the performance of stocks in the S&P 500 index that have a high “momentum score.” It holds 101 securities in its basket and charges 13 bps in fees per year. Information technology is the top sector with a 51.2% share, while consumer discretionary, communication services, and healthcare round off the next three spots. Invesco S&P 500 Momentum ETF has an AUM of $1.9 billion and trades in an average daily volume of 324,000 shares.Gabelli Growth Innovators ETF – Up 33.3%Gabelli Growth Innovators ETF is an actively managed fund that seeks to invest in companies in secular growth industries whose competitive moats will enable outsized market share gains and whose future stream of cash flows is undervalued at current market prices, according to the portfolio manager. Gabelli Growth Innovators ETF has gathered $5.3 million in its asset base and trades in an average daily volume of 2,000 shares. The product has an expense ratio of 0.90%.Roundhill Magnificent Seven ETF – Up 33.2%Roundhill Magnificent Seven ETF is the first-ever ETF that offers investors equal-weight exposure to the “Magnificent Seven” stocks. It has amassed $436.7 million in its asset base and charges 29 bps in fees per year. MAGS trades in an average daily volume of 200,000 shares.More By This Author:ETFs to Tap As Nvidia Becomes The Most Valuable Company5 Technology Stocks Powering S&P 500 ETF This YearFive ETFs That Gained Investors Love Last Week