5 Best Large-Cap Growth ETFs

In this article, we discuss 5 best large-cap growth ETFs. If you want to read our discussion on growth investing, head directly to 12 Best Large-Cap Growth ETFs. 

5. Vanguard Growth Index Fund ETF Shares (NYSE:VUG)

5-Year Share Price Performance as of May 3: 103.02%

Vanguard Growth Index Fund ETF Shares (NYSE:VUG) aims to replicate the CRSP US Large Cap Growth Index’s performance, offering a simple way to mirror the performance of numerous major American growth stocks. It utilizes a passively managed, full-replication strategy. Vanguard Growth Index Fund ETF Shares (NYSE:VUG) was founded on January 26, 2004. The ETF’s expense ratio has remained 0.04% since April 28, 2023. As of March 31, 2024, Vanguard Growth Index Fund ETF Shares (NYSE:VUG) holds 199 stocks in its portfolio, and the fund features net assets of $226.5 billion. VUG ranks 5th on our list of the best large-cap growth ETFs.

Pharma giant Eli Lilly and Company (NYSE:LLY) is one of the top holdings of Vanguard Growth Index Fund ETF Shares (NYSE:VUG). Eli Lilly and Company (NYSE:LLY) was part of 102 hedge fund portfolios at the end of the fourth quarter of 2023, same as the prior quarter. Ken Fisher’s Fisher Asset Management held the largest stake in the company, with 4.5 million shares worth $2.6 billion.

Aristotle Atlantic Core Equity Strategy stated the following regarding Eli Lilly and Company (NYSE:LLY) in its fourth quarter 2023 investor letter:

“Eli Lilly and Company (NYSE:LLY) is a leading pharmaceutical company that develops diabetes, oncology, immunology and neuroscience medicines. The company generates over half of its revenue in the U.S. from its top-selling drugs Trulicity, Verzenio and Taltz. The company operates in a single business segment, Human pharmaceutical products.

Eli Lilly has a deep pipeline in treatment areas focused on metabolic disorders, oncology, immunology and central nervous system disorders. Currently, there are two phase three assets, Orforglipron, an oral GLP-1 and retatrutide, a triple incretin agonist, which have the potential to expand upon the potential success of Mounjaro. We believe that Mounjaro has the potential to commercialize beyond type 2 diabetes and obesity, potentially in the areas mentioned above of heart disease, sleep apnea, fatty liver disease and chronic kidney disease. We believe the premium valuation is supported by this outsized growth profile.”

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

5-Year Share Price Performance as of May 3: 105.72%

Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ:VONG) is placed 4th on our list of the best large-cap growth ETFs. Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ:VONG) invests in stocks from the Russell 1000 Growth Index, which primarily consist of growth stocks from large US corporations. The fund was introduced on September 20, 2010. VONG features an expense ratio of 0.08% as of December 22, 2023. As of March 31, 2024, the ETF’s net assets amount to $26.3 billion, with a portfolio comprising 440 stocks.

Broadcom Inc. (NASDAQ:AVGO) is one of the biggest holdings of Vanguard Russell 1000 Growth Index Fund ETF Shares (NASDAQ:VONG). Hedge fund movement in Broadcom Inc. (NASDAQ:AVGO) increased to 91 in Q4 2023, compared to 87 funds holding the stock in Q3.

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.”

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

5-Year Share Price Performance as of May 3: 111.43%

Vanguard Mega Cap Growth Index Fund (NYSE:MGK) aims to mirror the CRSP US Mega Cap Growth Index’s performance using a passively managed, full-replication strategy. It offers diversified exposure to the most prominent growth stocks in the American market. The fund was launched on December 17, 2007. As of March 31, 2024, Vanguard Mega Cap Growth Index Fund (NYSE:MGK)’s portfolio consists of 79 stocks, and the fund’s net assets stand at $19.1 billion. The ETF offers an expense ratio of 0.07%.

Tesla, Inc. (NASDAQ:TSLA) is one of the top holdings of Vanguard Mega Cap Growth Index Fund (NYSE:MGK). According to Insider Monkey’s fourth quarter database, 82 hedge funds were bullish on Tesla, Inc. (NASDAQ:TSLA), with Philippe Laffont’s Coatue Management being one of the top stakeholders, boasting a $1 billion stake.

Polen Focus Growth Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its first quarter 2024 investor letter:

“The 9% growth we estimate for the Index includes the hefty weightings in high-growth names like NVIDIA and Tesla, Inc. (NASDAQ:TSLA). Tesla’s narrative wasn’t just about being a great electric vehicle manufacturer. The way we see it, the narrative included Tesla becoming a fully autonomous fleet of electric vehicles (“Robotaxi”) soon, the charging platform for all E.V.s soon, an AI play, a global solar utility company soon, a future subscription business, and more. When we research Tesla, we see a differentiated auto business and the potential for many of these interesting “options” to be realized over a long enough period. However, the timing and true viability of many of these options are still unknown and often take much longer than many hope. To justify today’s valuation, even after the recent pullback, we see a company that needs to crack the mass market with a $25,000 or less model at acceptable margins. Yet, the company hasn’t articulated a clear path to getting there. Interest rates have risen, and competition in China has intensified, tempering demand for its existing, higher[1]priced cars. Valuation has become more difficult to justify at these levels. We feel the reality of these dynamics has finally started to settle into Tesla stock prices, and we look forward to seeing a more reasonable valuation that reflects the existing product portfolio and any future offerings that demonstrate a very clear path to near-term commercialization.

We aim to invest in what we view as more predictable, highly competitively advantaged growth businesses that can drive the earnings growth we require to deliver long-term returns in line with our long-term mid-teens track record. We do not want or need to make heroic assumptions. Even over the highly unusual last five years that featured lumpy returns from year to year, we delivered mid-teens annualized gross returns—right in line with our historical average—driven by over 20% portfolio weighted-average earnings per share growth. We calculate that the earnings growth of the Russell 1000 Growth Index has been less than half that of our Portfolio over the same period.

As noted, Apple and Tesla, which we do not own but are large Index weights, underperformed and were relative contributors to our performance. It seems possible that market participants are finally seeing the economic reality of those businesses versus the hopeful narratives.”

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

5-Year Share Price Performance as of May 3: 116.13%

Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG) ranks 2nd on our list of the best large-cap growth ETFs. The objective of the Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG) is to closely mirror, prior to fees and expenses, the overall performance of the Dow Jones U.S. Large-Cap Growth Total Stock Market Index. The fund was launched on December 11, 2009. As of May 2, 2024, the fund’s net assets amounted to $26.3 billion, along with a portfolio comprising 250 holdings and a net expense ratio of 0.040%.

UnitedHealth Group Incorporated (NYSE:UNH), an American diversified healthcare company, is one of the largest holdings of Schwab U.S. Large-Cap Growth ETF (NYSE:SCHG). UnitedHealth Group Incorporated (NYSE:UNH) was part of 113 hedge fund portfolios at the conclusion of the fourth quarter of 2024, compared to 104 funds in the prior quarter. Rajiv Jain’s GQG Partners is the top stakeholder of the company, with 3.42 million shares worth $1.80 billion.

Baron Health Care Fund stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its first quarter 2024 investor letter:

“UnitedHealth Group Incorporated (NYSE:UNH) is a leading health insurance company that operates across four segments: United Healthcare, Optum Health, OptumInsight, and OptumRX. Shares fell alongside other managed care organizations (MCOs) due to patient utilization of Medicare Advantage (MA) that was higher than consensus forecasts, raising concerns that MCOs had mispriced 2024 bids and could suffer margin compression as a result. In addition, the industry is facing headwinds from MA reimbursement cuts and Star Rating changes. While management said higher cost trends are mostly transitory and reflected in its bidding, and 2024 guidance was roughly in line with consensus, investors took a more cautious wait-and-see approach. We believe UnitedHealth should remain a core portfolio holding, as it is a way to play positive demographic, population health, and value-based reimbursement trends. Despite its size, we think the company should be able to grow earnings consistent with its 13% to 16% long-term EPS annual target, the fastest among major MCOs.”

1. Invesco QQQ Trust (NASDAQ:QQQ)

5-Year Share Price Performance as of May 3: 123.38%

Invesco QQQ Trust (NASDAQ:QQQ) follows the NASDAQ-100 Index, providing exposure to the top 100 non-financial firms listed on the NASDAQ. The ETF has been operating since March 10, 1999. As of May 3, 2024, the fund features net assets worth $249.39 billion, along with an expense ratio of 0.2%. Invesco QQQ Trust (NASDAQ:QQQ) is one of the best large-cap growth ETFs to buy.

Costco Wholesale Corporation (NASDAQ:COST) is one of the top holdings of Invesco QQQ Trust (NASDAQ:QQQ). Costco Wholesale Corporation (NASDAQ:COST) was found in 57 hedge fund portfolios at the end of Q4 2023, compared to 65 in the last quarter. Ken Fisher’s Fisher Asset Management is the leading position holder in the company, with 2.79 million shares worth $1.84 billion.

Madison Sustainable Equity Fund stated the following regarding Costco Wholesale Corporation (NASDAQ:COST) in its fourth quarter 2023 investor letter:

“Costco Wholesale Corporation (NASDAQ:COST) reported solid holiday results and announced a special dividend of $15 per share. Earnings were better than expected driven by better gross margin. Same store sales were 3.9% with solid traffic. Costco also noted better discretionary trends and solid seasonal sales.”

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