The best growth exchange traded funds (ETFs) provide you with diversified portfolios of companies that are growing at above-average rates. These ETFs own stocks that deliver rapidly increasing sales, cash flows and share prices. Growth investing is a strategy that aims to buy the stocks of companies that are growing their revenues or cash flows faster than the rest of the market. Growth companies reinvest their profits to expand their businesses more rapidly. There’s no guarantee that a growth company will drive greater profitability over the longer term.
Growth ETFs track an underlying index that identifies growth companies based on a number of factors. Depending on the index, these factors may include growth in earnings, sales and price. Some ETFs also consider value metrics to either find deep growth companies or to find growth companies at a reasonable price. The ETFs included in our list take different approaches to growth investing. The result is a list of funds with P/E ratios that may be above average. Some funds have heavy concentrations in the top three to five companies, while others do not.
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|---|---|---|---|---|---|
| Advice | InvestCAN | InvestRESP | InvestUSA | RetireCAN | RetireMGN |
| $500.00 CAD $400.00 USD | $99.99 CAD | $79.99 USD | $99.99 CAD | $17.99 CAD $12.99 USD |
What is the Best Growth ETF?
- VONG: Vanguard Russell 1000 Growth Index Fund
- VUG: Vanguard Growth Index Fund
- QGRO: American Century U.S. Quality Growth ETF
- IWY: iShares Russell Top 200 Growth ETF
- MGK: Vanguard Mega Cap Growth Index Fund
- SCHG: Schwab U.S. Large-Cap Growth ETF
- IWF: iShares Russell 1000 Growth ETF
- SPYG: SPDR Portfolio S&P 500 Growth ETF
- VOOG: Vanguard S&P 500 Growth Index Fund
- IVW: iShares S&P 500 Growth ETF
Here is a table comparing similar growth ETFs as of November 30, 2023.
| Manager |  |  | | |  |  |  | | | |
| ETF | QGRO | IVW | IWF | IWY | SCHG | SPYG | MGK | VONG | VOOG | VUG |
| Inception | 2018-09-10 | 2000-05-22 | 2000-05-22 | 2009-09-22 | 2009-12-11 | 2000-09-25 | 2007-12-17 | 2010-09-20 | 2010-09-07 | 2004-01-26 |
| MER | 0.29% | 0.18% | 0.19% | 0.20% | 0.04% | 0.04% | 0.07% | 0.08% | 0.04% | 0.04% |
| AUM | $819,487,321 | $36,979,425,767 | $81,862,689,837 | $8,045,860,545 | $20,643,674,525 | $21,403,000,000 | $13,700,000,000 | $16,200,000,000 | $8,400,000,000 | $99,500,000,000 |
| P/E | N/A | 34.51 | 35.75 | 35.11 | 29.74 | 29.31 | 33.4 | 32.9 | 26.8 | 35.4 |
| P/B | N/A | 10.65 | 12.48 | 12.55 | 7.12 | 9.74 | 8.8 | 10.9 | 7.0 | 9.1 |
| Yield | N/A | 0.96% | 0.69% | 0.72% | 0.48% | 1.15% | 0.46% | 0.65% | 1.20% | 0.52% |
| Distributions | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly | Quarterly |
| 1Y | 32.29% | 15.61% | 26.00% | 29.52% | 31.97% | 15.78% | 33.37% | 42.68% | 15.79% | 46.85% |
| 3Y | 7.54% | 6.55% | 8.74% | 10.59% | 9.47% | 6.70% | 9.06% | 8.80% | 6.60% | 7.70% |
| 5Y | 18.23% | 13.12% | 16.15% | 17.56% | 16.81% | 13.26% | 17.25% | 19.44% | 13.23% | 19.18% |
| 10Y | N/A | 13.04% | 14.48% | 15.70% | 14.67% | 13.13% | 14.70% | 14.77% | 13.09% | 13.98% |
1. VONG: Vanguard Russell 1000 Growth Index Fund
With respect to 75% of its total assets, the fund may not: (1) purchase more than 10% of the outstanding voting securities of any one issuer or (2) purchase securities of any issuer if, as a result, more than 5% of the fund’s total assets would be invested in that issuer’s securities; except as may be necessary to approximate the composition of its target index. This limitation does not apply to obligations of the U.S. government or its agencies or instrumentalities.
- Seeks to track the performance of the Russell 1000 Growth Index.
- Large-cap growth equity.
- Employs a passively managed, full-replication strategy.
- The fund remains fully invested.
- Low expenses minimize net tracking error.
2. VUG: Vanguard Growth Index Fund
With respect to 75% of its total assets, the fund may not: (1) purchase more than 10% of the outstanding voting securities of any one issuer or (2) purchase securities of any issuer if, as a result, more than 5% of the fund’s total assets would be invested in that issuer’s securities; except as may be necessary to approximate the composition of its target index. This limitation does not apply to obligations of the U.S. government or its agencies or instrumentalities.
3. QGRO: American Century U.S. Quality Growth ETF
Seeks to capture the performance of large- and mid-capitalization companies in the U.S. that possess attractive quality, growth and valuation fundamentals. Pursues more consistent exposure to U.S. Growth companies versus market-cap-weighted indexes by emphasizing stable growers as well as high-quality, high-growth companies.
4. IWY: iShares Russell Top 200 Growth ETF
The iShares Russell Top 200 Growth ETF seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit growth characteristics.
- Exposure to large U.S. companies whose earnings are expected to grow at an above-average rate relative to the market
- Targeted access to a specific category of large-cap domestic stocks
- Use to tilt your portfolio towards growth stocks
5. MGK: Vanguard Mega Cap Growth Index Fund
With respect to 75% of its total assets, the fund may not: (1) purchase more than 10% of the outstanding voting securities of any one issuer or (2) purchase securities of any issuer if, as a result, more than 5% of the fund’s total assets would be invested in that issuer’s securities; except as may be necessary to approximate the composition of its target index. This limitation does not apply to obligations of the U.S. government or its agencies or instrumentalities.
6. SCHG: Schwab U.S. Large-Cap Growth ETF
The fund’s goal is to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index.
- A straightforward, low-cost fund offering potential tax-efficiency
- The Fund can serve as part of the core of a diversified portfolio
- Simple access to large-cap U.S. equities that exhibit growth style characteristics
- Stocks are classified as growth based on a number of factors
7. IWF: iShares Russell 1000 Growth ETF
The iShares Russell 1000 Growth ETF seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit growth characteristics.
- Exposure to U.S. companies whose earnings are expected to grow at an above-average rate relative to the market
- Targeted access to a specific category of domestic stocks
- Use to tilt your portfolio towards growth stocks
8. SPYG: SPDR Portfolio S&P 500 Growth ETF
The S&P 500 Growth Index measures the performance of the large-capitalization growth segment of the U.S. equity market. The Index consists of those stocks in the S&P 500 Index exhibiting the strongest growth characteristics based on: (i) sales growth; (ii) earnings change to price; and (iii) momentum. The Index is float-adjusted market capitalization weighted.
9. VOOG: Vanguard S&P 500 Growth Index Fund
The fund may not purchase securities of any issuer if, as a result, more than 5% of the fund’s total assets would be invested in that issuer’s securities; except as may be necessary to approximate the composition of its target index. This limitation does not apply to obligations of the U.S. government or its agencies or instrumentalities.
10. IVW: iShares S&P 500 Growth ETF
The iShares S&P 500 Growth ETF seeks to track the investment results of an index composed of large-capitalization U.S. equities that exhibit growth characteristics.
- Exposure to large U.S. companies whose earnings are expected to grow at an above-average rate relative to the market
- Low cost and tax efficient
- Use as a complement to a portfolio’s core holdings
