5 Best Growth ETFs To Buy Now

In this article, we discuss 5 best growth ETFs to buy now. If you want to read our discussion on growth investing, check out 13 Best Growth ETFs To Buy Now. 

5. iShares Russell 1000 Growth ETF (NYSE:IWF)

5-Year Share Price Performance as of March 27: 122.34%

iShares Russell 1000 Growth ETF (NYSE:IWF) ranks 5th on our list of the best growth ETFs. The fund aims to replicate the performance of the Russell 1000 Growth Index, comprising large and mid-cap U.S. equities displaying growth attributes. As of March 27, 2024, iShares Russell 1000 Growth ETF (NYSE:IWF)’s net assets amounted to $89.2 billion, and the fund featured an expense ratio of 0.19%, along with a portfolio comprising 440 stocks. 

Broadcom Inc. (NASDAQ:AVGO) is one of the top holdings of iShares Russell 1000 Growth ETF (NYSE:IWF). On March 21, Broadcom Inc. (NASDAQ:AVGO) was upgraded to Outperform by TD Cowen after its “Enabling AI Infrastructure” event, citing potential upside from custom silicon and AI networking. The full integration of VMware could yield further synergy. TD Cowen raised Broadcom’s price target to $1,500 from $1,400.

According to Insider Monkey’s fourth quarter database, 91 hedge funds were bullish on Broadcom Inc. (NASDAQ:AVGO), compared to 87 funds in the last quarter. 

Carillon Eagle Growth & Income Fund stated the following regarding Broadcom Inc. (NASDAQ:AVGO) in its fourth quarter 2023 investor letter:

“Broadcom Inc. (NASDAQ:AVGO) traded higher after closing on its acquisition of VMware. The company also announced earnings that were relatively in line with estimates with some benefit of better operating expenses. The stock appears to be one of the first real beneficiaries of generative artificial intelligence (AI) with meaningful revenue expected to show up in 2024.”

4. Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ:VONG)

5-Year Share Price Performance as of March 27: 122.74%

Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ:VONG) invests in stocks within the Russell 1000 Growth Index, which consists mainly of growth stocks from large American companies. It aims to closely replicate the index’s return, serving as a benchmark for large-cap growth US stock returns. As of December 22, 2023, the ETF’s expense ratio has remained 0.08%. Its portfolio consists of 443 stocks, and the total net assets amounted to $25.7 billion as of February 29, 2024. Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ:VONG) is one of the best growth ETFs to buy. 

Visa Inc. (NYSE:V) is one of the top holdings of Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ:VONG). On January 25, Visa Inc. (NYSE:V) reported earnings for the first fiscal quarter of 2024. The company announced a non-GAAP EPS of $2.41 and a revenue of $8.6 billion, outperforming Wall Street estimates by $0.07 and $50 million, respectively. 

According to Insider Monkey’s fourth quarter database, 162 hedge funds were bullish on Visa Inc. (NYSE:V), compared to 167 funds in the last quarter. 

In its October 2023 investor letter, Lakehouse Capital stated the following regarding Visa Inc. (NYSE:V):

“Visa Inc. (NYSE:V) reported a strong result with net revenue increasing 11% year-on-year to $8.6 billion and non-GAAP earnings per share increasing by 21% to $2.33. As has been the case for many years now, the scalable nature of the business allows for revenue growth to outpace its costs, which places the company in a good position to navigate through this inflationary period. The network continues to grow, with credentials and merchant locations up 7% and 17%, respectively. Cross-border travel-related spend also maintained its robust growth, increasing 26% year-on-year while Visa Direct reported 7.5 billion transactions, up 19% year-on-year, progressing on penetrating categories such as cross-border remittances. Altogether, we’re pleased with how the business is tracking and remain positive on Visa’s outlook.”

3. Vanguard Mega Cap Growth Index Fund (NYSE:MGK)

5-Year Share Price Performance as of March 27: 130.70%

Vanguard Mega Cap Growth Index Fund (NYSE:MGK) aims to replicate the performance of the CRSP US Mega Cap Growth Index through passive management and full replication. It offers investors exposure to the largest growth stocks in the US market. Vanguard Mega Cap Growth Index Fund (NYSE:MGK) is one of the best growth ETFs to watch. The fund offers an expense ratio of 0.07%, along with a portfolio comprising 82 stocks. As of February 29, 2024, Vanguard Mega Cap Growth Index Fund (NYSE:MGK)’s total assets amount to $18.6 billion. 

Mastercard Incorporated (NYSE:MA) is one of the largest holdings of Vanguard Mega Cap Growth Index Fund (NYSE:MGK). On March 12, Mastercard Incorporated (NYSE:MA) introduced Smart Subscriptions, an open-banking-powered solution helping consumers manage subscriptions. It builds upon last year’s Subscriptions Control, allowing cancellation, pausing, and resuming of subscriptions. Financial institutions can integrate it into consumer banking apps for spend analysis and categorization.

According to Insider Monkey’s fourth quarter database, 141 hedge funds were bullish on Mastercard Incorporated (NYSE:MA), compared to 140 funds in the previous quarter. 

Ensemble Capital Management stated the following regarding Mastercard Incorporated (NYSE:MA) in its fourth quarter 2023 investor letter:

“Mastercard Incorporated (NYSE:MA) (7.21% weight in the Fund): Payment companies are data companies. As we discussed last quarter in our write up of Mastercard, merchants can generate significant value from analyzing payment data to better understand their customers. Mastercard has long built AI-based products to enhance payment security and provide merchants with rich data analytics. In December, they rolled out Muse, a new online shopping companion that merchants who utilize certain Mastercard services can install on their own websites.

Muse seeks to replicate the instore experience of working with a salesclerk by allowing the customer to use natural language to browse products. Online shopping already works well if you know exactly what you are looking for, but Muse is striving to help customers find things to buy even when they aren’t sure what they are looking for.

Mastercard (7.21% weight in the Fund): In late October, Mastercard reported earnings that investors interpreted as pointing to a near term slowdown in payment growth. The stock fell 5.6% on the day. By the end of the next week, the stock had recovered its losses and went on to reach a new all time high on the last day of the year. But the 7.9% gain on the quarter slightly trailed the S&P 500.”

2. Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG)

5-Year Share Price Performance as of March 27: 133.51%

Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG)’s goal is to closely track the total return of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index, before fees and expenses. As of March 27, 2024, the fund’s net assets amounted to 26.8 billion and its expense ratio came in at 0.040%, and its portfolio consists of 249. Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG) is one of the best growth ETFs to monitor. 

UnitedHealth Group Incorporated (NYSE:UNH) is one of the top holdings of Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG). On January 12, UnitedHealth Group Incorporated (NYSE:UNH) reported a Q4 non-GAAP EPS of $6.16 and a revenue of $94.4 billion, outperforming Wall Street estimates by $0.17 and $2.22 billion, respectively. 

According to Insider Monkey’s fourth quarter database, 113 hedge funds were bullish on UnitedHealth Group Incorporated (NYSE:UNH), compared to 104 funds in the prior quarter. 

Sequoia Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its fourth quarter 2023 investor letter:

“The return in UnitedHealth Group Incorporated (NYSE:UNH) shares was essentially flat last year, whereas the Index was up sharply. In 2022, the return in UnitedHealth shares was modestly positive, whereas the Index was down sharply. The company’s financial performance, however, has been quite steady all along. In 2022, United’s revenues and earnings per share were up approximately 13% and 17%, respectively. We expect them both to be up low-teens in 2023. These pleasing financial results are consistent with United’s historical track record and with what we believe we will see for years to come.

Last year, sentiment across the managed care space was negatively impacted by concerns over reimbursement levels for Medicare Advantage, a perceived increase in the risk of adverse regulation for pharmacy benefit managers, and a slight deterioration of medical loss trends. While we do not dismiss these factors as irrelevant, we consider them in the context of the scale and diversity of United’s business as well as the resulting essential role the company plays in the admittedly imperfect US healthcare system…” (Click here to read the full text)

1. iShares Russell Top 200 Growth ETF (NYSE:IWY)

5-Year Share Price Performance as of March 27: 137.32%

iShares Russell Top 200 Growth ETF (NYSE:IWY) aims to mirror the performance of the Russell Top 200 Growth Index, comprising large-cap US stocks demonstrating growth traits. It offers exposure to prominent US firms expected to experience above-average earnings growth compared to the broader market. iShares Russell Top 200 Growth ETF (NYSE:IWY) is one of the best growth ETFs to buy. As of March 27, 2024, the fund owns net assets worth $10.2 billion, along with an expense ratio of 0.20% and a portfolio comprising 110 stocks. 

The Home Depot, Inc. (NYSE:HD) is one of the top holdings of iShares Russell Top 200 Growth ETF (NYSE:IWY). On March 28, The Home Depot, Inc. (NYSE:HD) agreed to acquire residential specialty trade distributor SRS Distribution for approximately $18.25 billion, including net debt. The deal is subject to regulatory approvals and is anticipated to close by the end of fiscal 2024, funded through cash and debt.

According to Insider Monkey’s fourth quarter database, 70 hedge funds were bullish on The Home Depot, Inc. (NYSE:HD), compared to 76 funds in the last quarter. 

ClearBridge Sustainability Leaders Strategy made the following comment about The Home Depot, Inc. (NYSE:HD) in its Q3 2023 investor letter:

“The Home Depot, Inc. (NYSE:HD) has long been a leader in advancing sustainable forestry, and its wood products can have a significant impact, as timber rates at the top of high-risk commodities responsible for most agriculture-related deforestation (Exhibit 3). The home improvement retailer adopted its first wood purchasing policy in 1999, pledging to give preference to sustainably sourced wood and to eliminate wood purchases from endangered regions around the world.

Biodiversity-boosting efforts at Home Depot have included tracing the origin of all the wood products it sells. This forms part of the process of verifying sustainable production, which it does using the certification standards of the Forest Stewardship Council (FSC). Since 2000 Home Depot has developed programs to purchase FSC wood products, such as doors, boards and patio furniture, from over 60 global suppliers. It has also moved more than 90% of its cedar purchases to second-and third-growth forests, with the rest coming from areas with local community stakeholder review.”

Should you invest $1,000 in Home Depot right now?

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