6 Best Growth ETFs to Buy in 2024

Growth stocks are a very popular option among investors that are looking to achieve above-average returns. In this article, we’re showcasing the best growth ETFs, including including a diverse range of ETFs so that every type of investor will be able to find a compelling product for their portfolio. 

The best growth ETFs to buy in 2024

Without further ado, let’s get started with our list of the best growth ETFs to buy in 2024. 

• Invesco QQQ Trust Series I (QQQ) – An ETF that tracks the tech-heavy Nasdaq-100 index
• iShares S&P 500 Growth ETF (IVW) – A rock-solid ETF for investing in large U.S. growth companies
• Vanguard Growth ETF (VUG) – A highly efficient growth ETF
• ARK Innovation ETF (ARKK) – Actively-managed fund investing in disruptive tech
• WisdomTree International Hedged Quality Dividend Growth Fund (IHDG) – An interesting ETF for U.S. investors that want to access foreign growth stocks
• Vanguard S&P Small-Cap 600 Growth ETF (VIOG) – An ETF investing in small-cap U.S. growth companies

1. Invesco QQQ Trust Series I (QQQ) – An ETF that tracks the tech-heavy Nasdaq-100 index

While it’s not explicitly a growth ETF, the Invesco QQQ Trust Series I (QQQ) fund can serve a similar role in a portfolio. This ETF tracks the tech-heavy Nasdaq 100 index, which contains the 100 largest non-financial companies listed on the Nasdaq stock exchange. 

The Nasdaq 100 index has been quite steadily outperforming the S&P 500 index, which is often used as a benchmark for the U.S. equities market, for the past 20 years. So, if you’re gunning for above-average returns in the U.S. market, an ETF tracking the Nasdaq 100 is a fairly obvious choice.

Nasdaq to S&P 500 ratio over the last 20 years. Image source: Longtermtrends.net

QQQ is the go-to ETF for investing in large companies with a heavy slant towards tech stocks. The QQQ ETF has an expense ratio of 0.20% and an AUM of over $245 billion at the time of writing. 

• Name and ticker: Invesco QQQ Trust Series I (QQQ)
• Expense ratio: 0.20%
• AUM (as of Feb 1, 2024): $246 billion
• Biggest holding and weight (as of Feb 1, 2024): Microsoft (9.00%)

2. iShares S&P 500 Growth ETF (IVW) – A rock-solid ETF for investing in large U.S. growth companies

The iShares S&P 500 Growth ETF (IVW) aims to invest in large U.S. companies that are expected to see above-average earnings growth. The IVW ETF is designed to track the S&P 500 Growth index. The index tracked by IVW has 225 constituents at the time of writing, offering fairly solid diversification.

The IVW ETF has a competitive expense ratio of 0.18% and an AUM of $37.1 billion. The fund’s largest holding at the time of writing is Microsoft, which represents 13.51% of the portfolio’s weight. If you’re looking for long-term exposure to U.S. growth stocks, IVW is a straightforward option that’s certainly worth considering.

• Name and ticker: iShares S&P 500 Growth ETF (IVW)
• Expense ratio: 0.18%
• AUM (as of Feb 1, 2024): $37.1 billion
• Biggest holding and weight (as of Feb 1, 2024): Microsoft (13.51%)

3. Vanguard Growth ETF (VUG) – A highly efficient growth ETF

The Vanguard Growth ETF (VUG) is a fund designed to track the CRSP US Large Cap Growth index, which consists of large growth stocks. At the time of writing, VUG’s portfolio contains 208 different stocks. 

In terms of sectors, the fund is heavily skewed towards technology, which represents roughly 54.80% of its portfolio at the time of writing. The second most represented sector in the portfolio is consumer discretionary with a representation of 20.40%. 

This passively-managed ETF has a very competitive expense ratio of just 0.04%, which makes it one of the most efficient growth ETFs when it comes to fees. At the time of writing, VUG has an AUM of $110.3 billion and its largest holding is Apple (13.00%). 

• Name and ticker: Vanguard Growth ETF (VUG)
• Expense ratio: 0.04%
• AUM (as of Feb 1, 2024): $110.3 billion
• Biggest holding and weight (as of Feb 1, 2024): Apple (13.00%)

4. ARK Innovation ETF (ARKK) – Actively-managed fund investing in disruptive tech

The ARK Innovation ETF (ARKK) is an actively-managed fund headed by famous investor Cathie Wood. True to its name, ARKK focuses on the theme of disruptive innovation, which ARK Invest characterizes as “the introduction of a technologically enabled new product or service that potentially changes the way the world works”.

This fund’s assets under management (AUM) stand at $8 billion. As of the latest update, its primary investment is in the Coinbase cryptocurrency exchange, holding a significant 8.85% share.

Given its active management, ARKK incurs higher costs than the ETFs we’ve featured in this article so far – the fund’s expense ratio is a substantial 0.75%. With its investment approach centered on the speculative end of the technology market, ARKK may not suit all investors.

Still, for those who are seeking higher risk investments with a heavy emphasis on the tech sector, ARKK can be a compelling choice.

• Name and ticker: ARK Innovation ETF (ARKK)
• Expense ratio: 0.75%
• AUM (as of Feb 1, 2024): $8 billion
• Biggest holding and weight (as of Feb 1, 2024): Coinbase (8.85%)

5. WisdomTree International Hedged Quality Dividend Growth Fund (IHDG) – An interesting ETF for U.S. investors that want to access foreign growth stocks

The IHDG ETF is a fund that seeks to track the Wisdom Tree International Hedged Quality Dividend Growth index. 

This rather unique ETF provides exposure to developed market companies, excluding companies based in the United States and Canada. As the name of the fund implies, the IHDG ETF invests in companies that have growth characteristics while paying dividends at the same time.

The fund also employs mechanisms to hedge against the value fluctuations of foreign currencies relative to the U.S. dollar.

If you want to include some growth stocks that aren’t based in North America to your portfolio, IHDG is an interesting option to consider. However, it’s important to keep in mind that it has a fairly high expense ratio of 0.58%.

• Name and ticker: WisdomTree International Hedged Quality Dividend Growth Fund (IHDG)
• Expense ratio: 0.58%
• AUM (as of Feb 1, 2024): $2.1 billion
• Biggest holding and weight (as of Feb 1, 2024): LVMH (4.89%)

6. Vanguard S&P Small-Cap 600 Growth ETF (VIOG) – An ETF investing in small-cap U.S. growth companies

We’re rounding out our list of the best growth ETFs with a product designed for investors that want exposure to small-cap growth companies. 

The Vanguard S&P Small-Cap 600 Growth ETF (VIOG) is designed to track the S&P Small-Cap 600 Growth index, which includes constituents from the S&P 600 index that satisfy criteria based on sales growth, ratio of earnings change to price and momentum. As of January 31, 2024, the index had 340 constituents. 

As an ETF based on an index tracking small-cap growth companies, VIOG is tailored for investors that are comfortable with adding a higher risk element to their portfolio. The fund has a competitive expense ratio of 0.15% and an AUM of $707 million at the time of writing this article. 

• Name and ticker: Vanguard S&P Small-Cap 600 Growth ETF (VIOG)
• Expense ratio: 0.15%
• AUM (as of Feb 1, 2024): $707 million 
• Biggest holding and weight (as of Feb 1, 2024): e.l.f. Beauty (1.37%)

The bottom line

Investors that are seeking diversified exposure to growth stocks have a wealth of investment products to choose from. Hopefully, our roundup of the best growth ETFs helped you find an ETF that will slot into your portfolio perfectly and deliver the above-average returns which make growth stocks so compelling.

If you’re looking for more ways to explore ETFs, make sure to check out our article highlighting the best ETF screeners.