In this article, we discuss the 5 growth ETFs to buy now. If you want to read about some more growth ETFs, go directly to 10 Growth ETFs to Buy Now.
5. iShares S&P 500 Growth ETF (NYSE:IVW)
iShares S&P 500 Growth ETF (NYSE:IVW) is an exchange traded fund that invests exclusively in large-cap stocks that exhibit growth characteristics. The fund invests at least 80% of net assets in securities of this type. The other 20% may be invested in futures, options and swap contracts, cash and cash equivalents.
A premier holding of the iShares S&P 500 Growth ETF (NYSE:IVW) is PayPal Holdings, Inc. (NASDAQ:PYPL), a payments technology company. At the end of the fourth quarter of 2021, 110 hedge funds in the database of Insider Monkey held stakes worth $9.9 billion in PayPal Holdings, Inc. (NASDAQ:PYPL), compared to 123 in the preceding quarter worth $12.8 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and PayPal Holdings, Inc. (NASDAQ:PYPL) was one of them. Here is what the fund said:
“PayPal Holdings, Inc. (NASDAQ:PYPL), a platform and provider of digital and mobile payment services through brands including Venmo, enhances our exposure to digital payments, e-commerce, and fintech; nascent markets with penetration rates accelerating globally. The pandemic pulled forward the growth of digital payments, which was further accelerated by PayPal’s entrance into cryptocurrency and buy now, pay later (BNPL). Shares recently declined 40% from their 52-week high due to competitive concerns and disruptions to consumer spending, providing an attractive entry point. PayPal Holdings, Inc. (NASDAQ:PYPL) is trading at its pre-pandemic multiple while its long-term growth drivers remain intact and it has increased innovation at both Venmo and core PayPal Holdings, Inc. (NASDAQ:PYPL), adding new experiences around shopping and investing that we expect to positively contribute to growth in users and average revenue per user over the next five years.”
4. Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG)
Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG) is an exchange traded fund that invests in companies on the Dow Jones US Large-Cap Growth Total Stock Market Index. The index comprises 750 of the largest growth firms in the US.
Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG) holds a large stake in Microsoft Corporation (NASDAQ:MSFT), a Washington-based tech giant. Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 26.8 million shares worth more than $9 billion.
In its Q4 2021 investor letter, Vulcan Value Partners, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ:MSFT) was one of them. Here is what the fund said:
“Microsoft Corporation (NASDAQ:MSFT) was a material contributor during the quarter. It is one of the highest quality companies in the world. We believe it has tremendous competitive advantages in its consumer and commercial Microsoft Office products as well as in its server and tools and Azure divisions. Over the last several years, Microsoft Corporation (NASDAQ:MSFT) has been implementing a successful transition from a traditional software license and maintenance revenue model to a subscription revenue model. The company remains competitively entrenched, produces strong free cash flow, and has a strong balance sheet.”
3. Vanguard Small Cap Growth Index Fund (NYSE:VBK)
Vanguard Small Cap Growth Index Fund (NYSE:VBK) is an exchange traded fund that invests at least 80% of net assets in companies on the CRSP US Small Cap Growth Index. The index comprises small-cap firms in the US that exhibit growth characteristics.
One of the biggest holdings of the Vanguard Small Cap Growth Index Fund (NYSE:VBK) is Avantor, Inc. (NYSE:AVTR), a chemicals and materials firm. Among the hedge funds being tracked by Insider Monkey, Connecticut-based investment firm Viking Global is a leading shareholder in Avantor, Inc. (NYSE:AVTR) with 8.7 million shares worth more than $370 million.
In its Q3 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Avantor, Inc. (NYSE:AVTR) was one of them. Here is what the fund said:
“Avantor, Inc. (NYSE:AVTR), which distributes proprietary, higher-margin consumables products to life science research companies, has benefited from accretive research & development as well as paying down debt, which has contributed to increased margins and strong stock performance.”
2. Vanguard Mega Cap Growth Index Fund (NYSE:MGK)
Vanguard Mega Cap Growth Index Fund (NYSE:MGK) is an exchange traded fund that invests at least 90% of total assets in securities on an index that measures the equity market performance of mega-capitalization growth stocks in the US.
A flagship holding of the Vanguard Mega Cap Growth Index Fund (NYSE:MGK) is Apple Inc. (NASDAQ:AAPL), a firm that makes and sells consumer electronics. At the end of the fourth quarter of 2021, 134 hedge funds in the database of Insider Monkey held stakes worth $186 billion in Apple Inc. (NASDAQ:AAPL), up from 120 in the previous quarter worth $146 billion.
In its Q4 2021 investor letter, Berkshire Hathaway highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:
“Apple Inc. (NASDAQ:AAPL) – our runner-up Giant as measured by its year end market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier. That increase sounds like small potatoes. But consider that each 0.1% of Apple’s 2021 earnings amounted to $100 million. We spent no Berkshire funds to gain our accretion. Apple’s repurchases did the job. It’s important to understand that only dividends from Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our “share” of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple Inc. (NASDAQ:AAPL) shares, an act we applaud. Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple Inc. (NASDAQ:AAPL) products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well.”
1. iShares Core S&P U.S. Growth ETF (NYSE:IUSG)
iShares Core S&P U.S. Growth ETF (NYSE:IUSG) is an exchange traded fund that tracks the investment returns of an index which comprises a basket of US-based stocks in the mid-cap and large-cap range which exhibit growth characteristics.
One of the top holdings of the iShares Core S&P U.S. Growth ETF (NYSE:IUSG) is Tesla, Inc. (NASDAQ:TSLA), a firm that markets electric vehicles and clean energy solutions. At the end of the fourth quarter of 2021, 91 hedge funds in the database of Insider Monkey held stakes worth $12.9 billion in Tesla, Inc. (NASDAQ:TSLA), compared to 60 in the previous quarter worth $10.6 billion.
Here is what ClearBridge Investments had to say about Tesla, Inc. (NASDAQ:TSLA) in its Q4 2021 investor letter:
“Within the growth universe we target, emerging growth stocks – the category with the highest revenue growth rates – significantly underperformed the overall growth categories in 2021 after leading performance in 2020. The pull-through effect on digitization, online access across industries, and spending to modernize outdated corporate infrastructures accelerated trends in a highly compressed time frame. Much of that trend slackened in 2021 and shares of these companies, while showing good top-line growth, saw slowing appreciation from the blistering pace in the prior year. With that moderating growth, multiples decelerated from 2020 highs. Bucking the headwinds among our emerging growth names was Tesla, Inc. (NASDAQ:TSLA) which saw continued sales momentum from their leadership positions in the key growth areas of electric vehicles.”
You can also take a peek at 10 Green Energy Stocks to Watch As Europe Cuts Reliance on Russia and 12 Best Artificial Intelligence Stocks To Invest In Right Now.
