In this piece, we will take a look at the five best growth ETFs to buy. If you want to take a look at the latest stock market news, then check out 12 Best Growth ETFs to Buy.
5. Vanguard Growth Index Fund (NYSE:VUG)
5 Yr. Annualized Return: 13.08%
Vanguard Growth Index Fund (NYSE:VUG) was set up in 1998 and it is part of the Vanguard funds family. The ETF is also one of the largest in terms of net assets on our list since it has net assets that are worth $182 billion. It has 235 holdings and limits itself into investing in large cap growth stocks. The Vanguard Growth Index Fund (NYSE:VUG)’s top three holdings are Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN).
4. iShares Russell 1000 Growth ETF (NYSE:IWF)
5 Yr. Annualized Return: 13.29%
The iShares Russell 1000 Growth ETF (NYSE:IWF) is part of the iShares fund family and it was set up in 2000. The ETF has net assets of $70 billion and it tracks the Russell 1000 Growth Index. Its price to earnings and price to book ratios are also among the highest on our list, as they sit at 33.01 and 11.58, respectively. The total number of holdings of the iShares Russell 1000 Growth ETF (NYSE:IWF) is 446 and its top picks are Apple and Microsoft.
3. Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG)
5 Yr. Annualized Return: 13.91%
Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG) is a multi billion dollar fund that is part of the Schwab ETFs fund family. It was set up in 2009 and has net assets that are worth $19.2 billion. It is the first fund on our list to track the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, with a total of 254 holdings and a portfolio turnover rate of 8.56%. The ETF’s price to earnings ratio is 35.14 and more than 45% of its investments are in the information technology sector.
2. Vanguard Mega Cap Growth Index Fund (NYSE:MGK)
5 Yr. Annualized Return: 14.10%
The Vanguard Mega Cap Growth Index Fund (NYSE:MGK) is a Vanguard ETF that was set up in 2008. It invests in only the top of the top stocks, namely mega cap giants with a market capitalization that is generally greater than $200 billion. The fund tracks the CRSP US Mega Cap Growth Index and it has $14.4 billion in net assets. There are 96 stocks in Vanguard Mega Cap Growth Index Fund (NYSE:MGK)’s portfolio, and its P/E ratio is 36.1. All the stocks it has invested in are U.S. stocks and the dominant sector is technology which accounts for more than half of the holdings.
1. Invesco QQQ Trust (NASDAQ:QQQ)
5 Yr. Annualized Return: 15.99%
The Invesco QQQ Trust (NASDAQ:QQQ) is a top tier ETF that tracks the premium NASDAQ 100 stock index. This also makes it unsurprising that the ETF tops our list since the underlying index has been one of the best performers in the world as of late. Its top stock picks are Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT).
Disclosure: None. You can also take a look at 10 Best Lithium ETFs and 20 Countries with Highest Rice Consumption Per Capita.
