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Growth stocks are routinely some of the hottest stocks on the market, and it’s not uncommon to double or triple the top performers in the market within a year. But finding out-performers requires a lot of time and analysis. What happens if you can find a winner with much less work? That’s where Growth Exchange Funds (ETFs) appear and you can purchase a collection of one fast-growing potential winners.
Below are some of the top growth ETFs and what you need to look for when purchasing an ETF.
What to look for in a growth ETF
Before purchasing an ETF, it is useful to have important information about the fund so that you can compare your investment opportunities with others. Here are some important things to keep in mind:
- Long-term achievements
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Perhaps the best guide to what a fund can create in the future is what the fund has done in the past. Check your 5 and 10 years of experience to see if returns are maintained over time. Of course, past performances do not guarantee future results.
- Diversification
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How diverse is growth ETFs? Does it own companies in different sectors or is it mainly in high-tech inventory? Increased diversification can reduce risk and increase investment safety.
- Expense rate
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The cost ratio is the amount paid annually to own a fund, expressed as a percentage of investment assets. That’s the money coming out of your return. In general, larger funds have lower expense ratios than smaller funds.
- Funding held
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Take a peek at the fund’s Top Holdings and see if that really matches what the growth fund should be. Holdings should broadly align with the fund’s investment goals. All growth funds are different.
Below are some of the best growth ETFs to consider for your portfolio. (Data as of May 22, 2025.)
Best Growth ETF
ISHARES Russell Top 200 GrowthETF (IWY)
The fund tracks large US growth stock indexes and has a strong five-year track record. Although they have over 100 holdings, ETFs tend to be very focused on high-quality high-tech stocks such as Apple, Amazon, and Microsoft.
- 5-year return (annual): 18.8%
- Cost Ratio: 0.20%
- Dividend Yield: 0.5%
Schwab US Large-Cap GrowthETF (SCHG)
This ETF shows you can get great performance even if you pay the rock bottom cost. SCHG tracks Dow Jones US’s massive growth total stock market index. The fund is concentrated in information technology stocks such as Apple, and has considerable investments in telecommunications, healthcare and consumer discretionary stocks.
- 5-year return (annual): 18.6%
- Cost Ratio: 0.04%
- Dividend Yield: 0.4%
Vanguard Mega Cap GrowthETF (MGK)
The fund from a low-cost leader aims to track the CRSP US Mega Cap Growth Index. The fund is largely focused on information technology and discretionary stocks by consumers as Apple, Amazon and Microsoft sit near the top of their holdings.
- 5-year return (annual): 18%
- Cost Ratio: 0.07%
- Dividend Yield: 0.5%
Vanguard Russell 1000 Growth ETF (Vong)
The ETF is investing in a stock made up of the Russell 1000 Growth Index, made up of large US growth companies, and is trying to track the return of that index. The fund has a large focus on information technology, consumer discretion and healthcare. Over the past five or ten years, long-term returns have been excellent.
- 5-year return (annual): 17.9%
- Cost Ratio: 0.07%
- Dividend Yield: 0.6%
ISHARES Russell 1000 GrowthETF (IWF)
With hundreds of stocks stable, this iShares ETF is considering tracking the results of an index consisting of large and intermediate stock growth stocks. Over time, outstanding returns are offered, including some of the largest public companies, including Apple, Alphabet and Nvidia.
- 5-year return (annual): 17.7%
- Cost Ratio: 0.19%
- Dividend Yield: 0.5%
SPDR Portfolio S&P 500 Growth ETF (SPYG)
Another fund with rock bottom costs, the ETF focuses on large growth stocks in the S&P 500 growth index. This includes the most powerful stocks of the S&P 500. This ETF includes Apple, Amazon, Microsoft, Tesla and Alphabet.
- 5-year return (annual): 16.9%
- Cost Ratio: 0.04%
- Dividend Yield: 0.7%
Investco S&P 500 GARPETF (SPGP)
The fund is based on the growth of the S&P 500 and includes around 75 stocks in the S&P 500, scoring well on growth, quality and value. The fund has performed strongly over the past five years and is diversified across healthcare, information technology, finance and industry.
- 5-year return (annual): 15.5%
- Cost Ratio: 0.36%
- Dividend Yield: 1.6%
Conclusion
ETFs offer an easy way to buy growth stocks without the all the work and analysis that comes with investors buying individual stocks themselves. Using these funds will likely minimize many headaches associated with investments and enjoy strong returns over time with some of the hottest performers in the market. It’s hard to beat that combination. If you’re looking for more AloundETFs, check out our list of the best ETFs from Bankrate.
– Bank Rate Logan Jacoby I contributed to updating this article.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. Furthermore, investors recommend that past investment products performance is not a guarantee of future price increases.