In this article, we discuss the 5 best large-cap growth ETFs. If you want to read our discussion on the current macro-environment, you can go to the 10 Best Large-Cap Growth ETFs.
5. Vanguard Mega Cap Growth Index Fund (NYSEARCA:MGK)
5-Year Price Performance: 89.4%
Total Net Assets as of September 18, 2023: $14.4 billion
Expense Ratio: 0.07%
Number of Holdings: 96
Vanguard Mega Cap Growth Index Fund (NYSEARCA:MGK) focuses on the mega-cap growth stocks in the US market. The ETF tracks the CRSP US Mega Cap Growth Index, which includes the biggest growth stocks within the top 70% of the US market by market capitalization. Notably, Apple Inc. (NASDAQ: AAPL) constitutes nearly 16% of the portfolio, and the top 10 holdings collectively represent over 60.9% of the fund’s assets. The sector allocation is tilted towards information technology, representing 46.9% of the portfolio. The ETF’s expense ratio of only 0.07% is the second lowest among all the ETFs on our list.
4. iShares Russell Top 200 Growth ETF (NYSEARCA:IWY)
5-Year Price Performance: 92.2%
Total Net Assets as of September 18, 2023: $6.61 billion
Expense Ratio: 0.20%
Number of Holdings: 111
iShares Russell Top 200 Growth ETF (NYSEARCA:IWY) aims to track the performance of the Russell Top 200 Growth Index, which represents the largest cap-weighted growth stocks in the Russell 1000 index. In terms of sector allocation, the ETF dedicates 46.5% of assets to information technology, 16.5% to consumer discretionary, and 12.5% to communication services.
3. Invesco QQQ Trust (NASDAQ:QQQ)
5-Year Price Performance: 105.1%
Total Net Assets as of September 18, 2023: $205.38 billion
Expense Ratio: 0.20%
Number of Holdings: 101
Invesco QQQ Trust (NASDAQ:QQQ) tracks the Nasdaq-100 index, which includes the top 100 non-financial companies, both domestic and international, that are listed on the NASDAQ exchange. The ETF appeals to investors who want to gain exposure to innovative large-cap stocks concentrated in tech, internet, e-commerce, and other growth areas. It is the biggest ETF on our list in terms of AUM. The ETF has a high average daily trading volume of 49.8 million shares.
2. Vanguard Information Technology Index Fund (NYSEARCA:VGT)
5-Year Price Performance: 114.6%
Total Net Assets as of September 18, 2023: $64.77 billion
Expense Ratio: 0.10%
Number of Holdings: 323
Vanguard Information Technology Index Fund (NYSEARCA:VGT) tracks the MSCI US Investable Market Information Technology 25/50 Index, covering IT stocks across large, mid, and small-cap companies. Apple Inc. (NASDAQ: AAPL) accounts for nearly 22.8% of the ETF’s portfolio, while Microsoft Corporation (NASDAQ: MSFT) represents 20%, reflecting the significant influence of mega-cap tech companies. This ETF ranks third in terms of assets under management (AUM) among the funds included in our list.
1. Technology Select Sector SPDR Fund (NYSEARCA:XLK)
5-Year Price Performance: 129.8%
Total Net Assets as of September 18, 2023: $50.94 billion
Expense Ratio: 0.10%
Number of Holdings: 65
Technology Select Sector SPDR Fund (NYSEARCA:XLK) tracks the Technology Select Sector Index, which includes IT companies in the S&P 500 across various technology-related segments, including hardware, equipment, software, and semiconductors.
As of September 2023, the ETF’s biggest holdings include Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), NVIDIA Corporation (NASDAQ:NVDA), Broadcom Inc. (NASDAQ:AVGO) and Adobe Inc. (NASDAQ:ADBE). The ETF has numerous similarities to the Vanguard Information Technology Index Fund (NYSEARCA:VGT) and attracts investors looking to go overweight on high-growth and large-cap growth stocks, driven by the increasing IT spending trends.
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