Investors generally associate exchange-traded funds with stability. ETFs are instruments that hold a basket of funds allowing investors to lower their risk significantly while providing them with diversification.
However, a few ETFs have managed to derive outsized gains for investors compared to the S&P 500 (AMEX: SPY). Here, we take a look at five such growth ETFs that you can consider right now.
Invesco QQQ
In the last decade, the Invesco QQQ ETF (NASDAQ: QQQ) has derived returns of 465% compared to the S&P returns of 211%. The tech-heavy fund has a forward yield of 0.52% and $161.68 billion in net assets.
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The top five holdings of the ETF are Apple, Microsoft, Amazon, Tesla, and Alphabet that account for 36% of the total ETF.
Ark Innovation ETF
Noted investor Cathie Wood who is considered a rising star in Wall Street has launched multiple growth ETFs in the last few years. One such fund is the Ark Innovation ETF (AMEX: ARKK). It has $28 billion in assets under management and has returned 404% in less than seven years compared to the 111% gains of the S&P 500.
The Ark Innovation has $28 billion in assets under management, and the top five holdings account for more than 33% of the fund. Here, you get exposure to growth stocks such as Tesla, Square, Teladoc, Roku, and Baidu.
Ark Fintech Innovation ETF
If you are eyeing the highly disruptive fintech space, you can look to buy the Ark Fintech Innovation ETF (ARCA: ARKF), another fund from Cathie Wood’s stable.
With $4.7 billion in assets under management, the ETF has returned 126.5% since its inception in 2018. Comparatively, the S&P 500 has gained 57.37% in this period.
Vanguard Growth Index Fund
With a dividend yield of 0.61% and close to $160 billion in assets under management, the Vanguard Growth Index Fund (AMEX: VUG) is another fund growth investors should consider.
This ETF is up 308% in the last decade and tech heavyweights such as Apple, Microsoft, Amazon, Facebook, and Alphabet account for 36% of the fund.
First Trust Cloud Computing ETF
The cloud-computing segment is a high growth vertical, and the First Trust Cloud Computing ETF (NASDAQ: SKYY) is one of the best funds for you to get exposure to growth stocks part of a rapidly expanding market.
The SKYY ETF has $6.24 billion in net assets and has returned close to 370% since May 2011.
