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Summary: In this guide, we’ll introduce the best ETFs to buy for long-term growth in 2024. Each of these is available on our chosen brokerage platform, eToro.
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What are growth ETFs?
Growth ETFs, or exchange-traded funds that focus on growth-oriented stocks, are designed to provide investors with exposure to companies displaying strong potential for future expansion. These funds typically include stocks of companies exhibiting above-average revenue and earnings growth.
Investing in growth-oriented assets can be rewarding for those with a higher risk tolerance, as these companies are often in the early stages of their business lifecycle and have the potential for substantial capital appreciation.
5 best ETFs to buy for long-term growth
After thorough research, we’ve come up with the best ETFs to buy for long-term growth in 2024:
- Vanguard S&P 500 ETF (NYSE Arca: VOO);
- Invesco S&P 500 Equal Weight ETF (NYSE Arca: RSP);
- iShares Russell 1000 Growth ETF (NYSE Arca: IWF);
- Vanguard Real Estate ETF (NYSE Arca: VNQ);
- Schwab U.S. Dividend Equity ETF (NYSE Arca: SCHD).
Note
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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Vanguard S&P 500 ETF (VOO)
Vanguard’s S&P 500 ETF stands out as a reliable option in the world of index funds, providing investors with exposure to the 500 largest U.S. companies. Its low expense ratio and efficient tracking of the S&P 500 make it an appealing choice for those seeking broad-based, long-term growth.
Vanguard S&P 500 ETF price today
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Invesco S&P Equal Weight ETF (RSP)
Next up, we have Invesco S&P 500 Equal Weight ETF, a fund that takes a unique approach by assigning an equal weight to each constituent of the S&P 500. This strategy mitigates the dominance of larger companies, offering investors a different avenue for potential long-term growth.
Invesco S&P 500 Equal Weight ETF price today
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iShares Russell 1000 Growth ETF (IWF)
Focusing on growth within the large-cap segment, the iShares Russell 1000 Growth ETF includes companies displaying robust revenue and earnings potential. As such, this ETF is tailored for investors looking to participate in the growth of established, growth-oriented U.S. companies.
iShares Russell 1000 Growth ETF price today
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Vanguard Real Estate ETF (VNQ)
For those seeking growth opportunities in the real estate sector, the Vanguard Real Estate ETF is an excellent choice. This fund provides exposure to real estate investment trusts (REITs), allowing investors to benefit from potential long-term growth in the real estate market.
Vanguard Real Estate ETF price today
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Schwab U.S. Dividend Equity ETF (SCHD)
Departing from the traditional growth-focused ETF, the Schwab U.S. Dividend Equity ETF integrates dividends into its strategy. By including high-quality dividend-paying stocks, SCHD offers investors a unique blend of income and the potential for long-term growth.
Schwab U.S. Dividend Equity ETF price today
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Where to buy growth ETFs?
Investors can purchase Growth ETFs through various brokerage platforms. Nevertheless, our go-to broker is eToro, a widely popular platform with over 30 million registered accounts and a myriad of useful investing features, such as:
- Commission-free stock trading;
- Access to over 2,000 stocks from 17 different exchanges;
- Charting tools;
- The option to purchase fractional shares.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
Pros and cons of buying long-term growth ETFs
Pros
- Diversification: Growth ETFs often include a diversified mix of stocks, reducing the risk associated with investing in individual companies;
- Professional management: Some growth ETFs are actively managed, allowing experienced fund managers to make strategic investment decisions;
- Liquidity: ETFs trade on the stock exchange like individual stocks, providing investors with liquidity and the ability to buy or sell throughout the trading day.
Cons
- Market volatility: Growth stocks can be more volatile than their value counterparts, leading to higher short-term price fluctuations;
- Management fees: While generally lower than actively managed mutual funds, some ETFs still charge management fees, which can impact overall returns;
- Risk of underperformance: The growth strategy doesn’t guarantee success, and investors may face periods of underperformance, especially during economic downturns.
Common mistakes to avoid when buying growth ETFs
- Overlooking expense ratios: High expense ratios can erode returns over time. Before investing, carefully review the ETF’s expense ratio to ensure it aligns with your financial goals;
- Ignoring asset allocation: Diversification is key. Avoid concentrating your portfolio in a single sector or asset class, as this can expose you to unnecessary risk;
- Chasing past performance: While historical performance is essential, it’s not indicative of future results. Base your investment decisions on a fund’s strategy and your financial objectives rather than recent gains;
- Lack of regular monitoring: Markets evolve, and so should your investment strategy. Regularly review your portfolio and adjust your holdings to align with your long-term goals.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about long-term growth ETFs
Are growth ETFs suitable for conservative investors?
Growth ETFs are generally more suited to investors with a higher risk tolerance, as they can be more volatile. Conservative investors may prefer a more balanced approach, incorporating a mix of growth and value investments.
What are the best ETFs to buy for long-term growth?
The best ETFs for long-term growth include Vanguard S&P 500 ETF (VOO), Invesco S&P 500 Equal Weight ETF (RSP), iShares Russell 1000 Growth ETF (IWF), Vanguard Real Estate ETF (VNQ), and Schwab U.S. Dividend Equity ETF (SCHD). These ETFs offer diverse opportunities across broad market indices, equal-weighted components, large-cap growth stocks, real estate, and dividend-paying equities, respectively.
Can growth ETFs provide income?
While growth ETFs typically focus on capital appreciation, some, like SCHD, include dividend-paying stocks. Investors seeking income alongside growth potential may find such ETFs appealing.
How often should I review my growth ETF portfolio?
Regularly review your portfolio at least annually to ensure it aligns with your financial goals. Adjust your holdings if needed, considering changes in market conditions and your risk tolerance.
